Scottish Financial Enterprise responds to Mansion House speech

SFE Chief Executive Sandy Begbie CBE FRSE said:

“The chancellor’s Mansion House speech and the Leeds Reforms underlines that only genuine, long-term economic growth will help sustainably deliver on the goals of the government. As set out in our sector growth strategy, it is key that there is alignment between government and industry, as well as an acknowledgement that financial and professional services will play a key role in driving economic growth.

“In Scotland, our sector already contributes over 10% of total GVA at around £17.7bn a year and with a target to grow this to £21bn before the end of the decade. The reforms that have been announced will act as a key enabler in delivering this growth once implemented.

“By changing Britain’s regulatory culture to a model which regulates for growth, the chancellor has taken an important step towards recognising the role that financial services must play in unlocking the nations potential. This move will make the UK, and Scotland, more attractive for financial professionals and businesses, while also attracting inward investment.

“In a competitive global landscape, the UK governments commitment to creating a concierge service for international financial services will be a significant differentiator. By actively harnessing global networks and providing tailored support that highlights the specialised strengths of cities like Glasgow and Edinburgh, the government is making a compelling case for investment. Edinburgh is set to host Scotland’s Global Investment Summit in October to highlight investment opportunities in Scotland.

“Overall, we welcome the government’s articulation of the importance of economic growth, but delivery is key, and business will be watching closely for evidence that these promises are matched by action. It is now important that the UK and Scottish governments use Scotland’s Global Investment Summit to drive this financial services strategy and wider economic growth.

“However, as we look forward to the autumn budget, the chancellor must remember that you cannot tax your way to economic growth. The government must follow through on its strategy to allow business to invest with confidence and deliver real and sustainable growth.”