Britain Must Get Competitive or Lose a Generation of Business Leaders
Chris Hayward, policy chairman at the City of London Corporation, has issued a stark warning that Britain must enhance its competitiveness or risk losing an entire generation of business leaders to global rivals. In a speech to be delivered at the annual Policy Committee Dinner this week, Hayward will emphasize that challenges around tax, talent, and technology have moved from marginal concerns to existential threats for the UK economy.
The Three "T"s: Tax, Talent, and Technology
Hayward argues that restoring economic growth has become the defining challenge of national life, particularly against a backdrop of geopolitical tension, economic fragmentation, and rapid technological change. Business leaders consistently report rising costs, ruthless global competition for jobs and investment, and profound shifts in financial market infrastructure.
"We should not waste time waiting for a silver bullet," Hayward states. "The UK's economic history shows that progress is often achieved by a series of small, deliberate interventions—practical steps that make the economy more competitive, year after year."
The High Cost of Slower Growth
To illustrate the stakes, Hayward points to growth rate comparisons. If the UK had maintained its historic 2% trend growth rate from the 1970s to 2010 instead of drifting closer to 1.3%, the missing 0.7 percentage points would have been worth approximately £17.5 billion to the economy last year alone.
"A decimal point on a spreadsheet, but a colossal difference for public services, regional investment, and the long-term health of the economy," he notes.
Taxation as National Interest
Hayward emphasizes that taxation should not be treated as an ideological battleground but rather as a matter of national interest. When global rivals like New York or Singapore offer stronger incentives, operations and individuals inevitably follow.
"Britain does not need to compete with zero tax jurisdictions, and nor should it," he explains. "But it does need a framework that reinforces the UK's strengths rather than eroding them."
The risk is clear: without a more competitive posture, a generation of founders and innovators may decide that success means selling early, listing elsewhere, or relocating entirely.
Targeted Policy Interventions
The government's decision to introduce a three-year moratorium on stamp duty for London IPOs represents exactly the kind of targeted, incremental policy shift that can change behavior and restore confidence, according to Hayward.
However, a significant gap remains between early-stage success and public listing. Hayward will make the case for tax changes specifically designed to ensure high-growth firms stay in the UK during this critical phase.
The Digital Revolution in Finance
Alongside tax reform, Britain must recognize that a digital transformation is already reshaping global finance. Tokenised assets, instantaneous settlement, and fully digital wholesale markets are no longer hypothetical concepts.
"Competitors are moving at speed," Hayward warns. "Dublin, Singapore, and New York are upgrading infrastructure to host digital trades at scale. If we don't build the infrastructure, we won't host the transactions. This is a financial revolution—we either lead it, or we lose it."
In this context, the government's commitment to appoint a Digital Markets Champion is both timely and essential, with the City Corporation pledging full support for this agenda.
A Crisis of Self-Belief
Finally, Hayward identifies a paradox in Britain's current economic position. Despite overseas investors continuing to deploy billions into cities like Aberdeen, Edinburgh, Manchester, Birmingham, and London, the UK confronts a crisis of self-belief.
Wherever he travels—across Europe, Asia, America, and the Gulf—investors consistently praise the UK's universities, legal system, innovation culture, global talent base, and political stability.
"The challenge is persuading Britain to see itself with the same clarity," Hayward observes. "Self-doubt is an indulgence we can no longer afford."
The Path Forward
The coming months will test whether the UK is prepared to match its potential with purpose. While fundamentals remain strong—including world-class talent, deep capital pools, global reach, and institutional advantages that are the envy of other markets—strengths alone do not guarantee success.
Securing the next era of British growth will demand:
- Urgency from government
- Ambition from industry
- A collective willingness to lead rather than lag
Hayward's message is unequivocal: Britain must act now to enhance competitiveness across tax, talent, and technology dimensions, or risk losing its most promising business leaders to more attractive global destinations.
