Today’s report from the BBA, ‘Winning the Global Race’, outlined regulation, the tax regime and the EU referendum as key threats to UK financial services, while the association made a number of recommendations on how the UK should conduct itself.
The BBA said regulation should be reviewed to identify unintended consequences and areas where objectives are not being effectively met, while it warned against regulation preventing the expansion of startups. Banks also need to continue investing in UK talent with degree level apprenticeship schemes, while the Home Office should reconsider tier 2 visa limits to help the employment of skilled individuals.
Worryingly for the UK banking industry employment in the sector has fallen by 8% since 2011.
In 2014 the UK banking sector contributed almost 5% of the UK’s gross value added, the measure of goods produced in an economy, and it employed more than 405,000 people; contributing £31bn in tax.
Anthony Browne, BBA chief executive, said: “We have now reached a watershed moment in Britain’s competitiveness as an international banking centre. Many international banks have been moving jobs overseas or deciding not to invest in the UK.
“Our report today shows we cannot be complacent. We have to act now together with regulators and government to maintain the UK’s leading position in the global competitiveness race and deliver the ‘new settlement’ outlined by the Chancellor in his Mansion House speech.
“Today we are setting out a joint plan of action for industry, regulators and the government to tackle together the local and global threats to our competitiveness. Taking action now will secure the UK’s position and maintain the considerable contribution that international wholesale banking makes to the British economy.”
