Financial Services policy briefing: March

Building on CBI Director-General Tony Danker’s inaugural speech calling for the UK’s first ever economy strategy, work continues apace here at the CBI on shaping an exciting vision for the future of the UK economy. The Financial Services team have been working actively on the raft of consultations on the future of UK financial services, stressing its critical role in enabling growth as well as the part it will play beyond the recovery in the years ahead.

Budget 2021

Overall, there was lots in the budget for businesses to welcome – the Chancellor succeeded strongly in protecting the economy now and kickstarting recovery. The Chancellor also had an eye to the future, making key interventions to address the public finances, while building confidence and investment in a lasting recovery. 

However, as the CBI made clear, the increase of the Corporation Tax rate will cause a sharp intake of breath for many businesses. The Financial Services team look forward to continuing to work with members on issues such as the review of the banking surcharge and Insurance Premium Tax (IPT). If you would like to join our Financial Services Taxation Working Group, please contact Chris Wilford.

Consultations

The CBI has responded to a series of recent consultations. This has included the Financial Services Regulatory Framework Review, the Listings Review, the FinTech Review, the Solvency II Review and the Treasury Select Committee Inquiry into the future of UK Financial Services. The CBI has stressed the importance of these initiatives to the whole economy, helping the UK level up and achieve its net-zero ambitions.

UK Funds Review

The CBI will now be responding to the UK Funds Review. This review of the UK’s fund regime covers tax and areas of regulation, with the call for input setting out the scope and objectives of the review. HM Treasury invites stakeholders to provide views on which reforms should be taken forward and how these should be prioritised. If you would like to be involved in the CBI’s response, please contact Chris Wilford.

Sustainable Finance Working Group

The CBI published its discussion paper on Sustainable Finance earlier this year. It is now setting up a working group on environmental, social and governance (ESG). This will help develop the CBI’s position on these issues through COP 26 and beyond. If you would like to be involved, please contact Flora Hamilton.

LIBOR Transition

The CBI is actively involved in LIBOR Transition, working with UK Finance, the Association of Corporate Treasurers and the Institute of Chartered Accountants in England and Wales to help raise SME Awareness. This includes a series of guides. Chris has also spoken on Bank of England seminars on the importance of ensuring SMEs are prepared and the steps businesses need to take. If you would like to find our more or get involved in the CBI’s work, please contact Chris Wilford.

Brexit and financial services

Thank you for your continued feedback on the impact of Brexit on your own business as well as your customers. Your insights on what next and views on equivalence continue to be welcome, as well as opportunities for the UK going forward. You can find more information on our UK Transition Hub.

If you would like to share your latest views please do contact your account manager or reach out directly to Flora Hamilton, Director of Financial Services.