‘It’s time for a new era of scale-up investment to power British growth’

Financial services, often described as the jewel in the crown of the UK economy, already contribute 12% of government tax receipts. Proposals to introduce VAT on financial services or increase the bank levy must be firmly off the table if the sector is to continue making an outsized contribution towards paying for sustainable public services on which tens of millions of people rely. Rumours of taxes on limited liability partnerships (LLPs) must also not come to pass – the risks to UK’s competitiveness are clear and must be avoided.

Nvidia’s founder and CEO, Jensen Huang, said recently that the UK could become the next AI superpower. We have the talent, the university spinouts and the tech hubs to make that vision a reality. What we lack is scale-up capital and an investment culture to provide the funding those companies crave.

Currently, just 0.007% of British and Irish pension funds are invested in UK venture capital. That is less than one pound in every 14,000. That figure is strikingly low. The equivalent figure in the US is one dollar for every $200. Even a modest shift in allocation could be transformative.

Mansion House Accord – a pledge to allocate 10% of pension fund assets into high-growth assets, with at least half of that directed into the UK economy – gives British savers a meaningful stake in British growth.

Another important initiative is the Office for Investment, a financial services concierge service launched jointly by the City of London Corporation and the government, which will streamline the investment process for foreign firms coming to the UK.

Sending the right signals is vital. The chancellor should revisit the proposed non-dom reforms to ensure they encourage high-net-worth individuals to live and work in the UK. We must shift our narrative around wealth creators. Our economy needs them. This is not about special treatment; it is about securing the UK’s position as a leading destination for global capital. Why compromise our global competitiveness?

Abolishing stamp duty on share trading should be carefully considered – and as a first step abolishing it for newly listed companies. It is simply inconceivable that it costs more for Britons to invest in Rolls-Royce compared with Tesla.

We need fewer barriers to investing in UK companies. Removing this friction could be one of many measures to stimulate positive investment of the £280bn or so currently sitting idle in accounts earning zero interest.

The financial services sector has ramped up its efforts to back UK growth. I have experienced this up close; by getting industry leaders into a room, locking the door and asking the hard question: ‘what is it going to take?’ The Mansion House Accord and the concierge service are evidence the sector is ready. It is now over to the government to show what it can bring to the table. All eyes will be on the chancellor to demonstrate that the budget can deliver.

Photograph by Leon Neal/Getty Images