Election 2024: City groups urge strong partnership with Labour for economic stability

City of London business groups are calling for the incoming Labour government to prioritise the financial sector as the City reacts to the news of Labour's overwhelming win

City of London business groups are calling for the incoming Government to prioritise the financial sector as the City reacts to the news of Labour’s overwhelming win.

City of London Corporation policy chairman Chris Hayward has said the body “works with any elected government”, however it looks “forward to working with Sir Keir Starmer’s Government to deliver on Labour’s five missions.”

He has pointed out that financial and professional services are the engine room of the UK economy, as it employs over 2.4m people and contributes over £110bn in taxes annually, “more than the Government’s annual education budget”.

He was stern on calling for this sector to be at the “forefront of Labour’s plans to drive growth”.

Hayward was clear that for “Labour’s bold ambition to make Britain a clean energy superpower, private sector finance must play a central role.”

“Working together, public and private partnerships must seize this historic opportunity to transition to net zero, creating new high-skilled jobs, cutting energy costs for families, and securing our nation’s green energy supply,” he explained.

John Dickie, chief executive at BusinessLDN has called on the new Labour Government to prioritise “growth, growth, growth” now it has “secured an historic mandate”.

He has urged the incoming Government that working with the private sector “will be vital to turn around the fortunes of a high-tax, low productivity economy with dire government finances and stretched public services.”

Dickie explained that the work starts with no or low-cost measures which when taken together “will build investor confidence, unlock private investment and create jobs”.

He listed clarity on future tax policy, removing stamp duty on shares, scrapping the Infrastructure Levy, reforming the planning system and overhauling the apprenticeship system.

These need to go hand in hand with longer-term growth measures from increasing the supply of affordable homes, giving the Mayor – and other metro mayors – further powers and funding to meet the needs of their local areas, to delivering UK-wide supply chains a boost with a multi-year capital funding deal for Transport for London on a par with other regions,” he explained.

BusinessLDN has also called for “greater political alignment between Westminster and City Hall” to “reset the narrative on London’s relationship with the rest of the country and unleash its full potential as the UK’s engine of growth.”

While chair of the Federation of Small Businesses (FSB), Tina McKenzie stated that “the clear result of the General Election gives hope that political stability can lead to economic stability and recovery.”

She noted that there is a “golden chance” for the incoming Labour government “to plant the seeds of small business growth” in its first 100 days in office.

“The upcoming King’s Speech should include a Small Business Bill to enshrine in legislation much-needed changes to better support small firms and the self-employed”, McKenzie added.

UK Finance chief executive David Postings noted that “throughout the election campaign economic growth has been front and centre of the debate.”.

He reiterated that “financial services has a vital role to play here, both as a major employer and through the support it provides to consumers and businesses up and down the country.”

“I now look forward to working with them to deliver the best outcomes for our sector and the whole economy,” Postings added.