A powerful coalition of London's financial leaders has issued an urgent call for strategic reforms to safeguard the City's position as a global financial powerhouse. The influential London Finance Commission warns that without decisive action, the capital risks losing its competitive edge in international markets.
The Trillion-Pound Challenge
London's capital markets, valued at an astonishing £1.5 trillion, face mounting pressure from rival financial centres across Europe and the United States. The commission's report highlights concerning trends, including a significant decline in UK company listings and diminishing liquidity in public markets.
"We're at a critical juncture," the report emphasises. "The UK's capital markets ecosystem requires targeted interventions to maintain its global standing."
Key Recommendations for Reform
The commission has outlined several crucial measures to revitalise London's financial landscape:
- Streamlining the listing process to make London more attractive for high-growth companies
- Enhancing research coverage for small and mid-cap companies to improve market visibility
- Reforming the UK's stewardship code to encourage long-term investment strategies
- Developing clearer guidance on ESG (Environmental, Social, and Governance) disclosures
A Competitive Global Landscape
The warning comes as financial centres in Paris, Amsterdam, and New York aggressively compete for London's business post-Brexit. While the commission acknowledges the UK's continued strengths in areas like fintech and green finance, it stresses that complacency is not an option.
"Our capital markets are fundamental to funding innovation, supporting businesses, and driving economic growth across the UK," the report states. "Targeted reforms now could secure London's position for decades to come."
The commission's findings have been presented to government officials and regulatory bodies, with industry leaders hoping for swift implementation of the recommended changes.
