Chancellor Hosts High Level Group On City Competitiveness

by Jason Gorringe, Tax-News.com, London

16 November 2007

UK Chancellor of the Exchequer, Alistair Darling, and Treasury Economic Secretary and City Minister, Kitty Ussher hosted senior financial sector representatives at a meeting of the High-Level Group on City Competitiveness at No 11 Downing Street on Wednesday.

The High-Level Group met to discuss recent events in global financial markets, and to follow up discussions from previous Group meetings on their strategy to enhance the global competitiveness of the City and the UK-based financial sector.

Also in attendance were Secretary of State for Transport, Ruth Kelly, Secretary of State for Scotland, Des Browne, and BAA Chairman, Sir Nigel Rudd and CEO, Stephen Nelson.

Speaking after the meeting, Alistair Darling announced that: "As one of the world leaders in financial services Britain should be confident about the opportunities that come with globalisation. We must also remain vigilant about the challenges ahead."

"This week, we have taken further forward our discussions on what more business, the City and Government can do together to ensure London retains its pre-eminence in the sector. I want to remain in close touch with the City on these issues," he added.

Kitty Ussher observed that: "To ensure continuing success of the financial services sector we need the Government and the industry to continue to work together. Where there are problems we will work to address them."

The Group discussed recent market events, reiterating support for a principles-based regulatory approach focused on outcomes and good business governance.

It was agreed to establish an expert group of financial sevices representatives to inform the Government's approach to international discussions affecting the financial services industry.

Following the publication of a discussion paper on the review of the Lamfalussy Arrangements for EU financial services supervision, the UK's position was outlined. This rejects a one-size-fits-all regulatory approach or a pan-European regulator, as neither would allow the flexibility needed for EU markets to prosper.

Promoting financial services and financial dialogue overseas was also a key topic. It was concluded that UK Trade & Investment (UKTI) rollout of the new overseas promotion strategy for UK-based financial services will continue. Relationships with key international partners were further strengthened by a UK-India Economic and Financial Dialogue held in September, discussing financial sector development and reforms, including liberalisation.

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