These are the City of London's General Election priorities for Brexit, fintech, and job growth

LONDON — The winning party in June's general election should prioritise a "bespoke" Brexit deal for financial services, promote the British fintech scene, and boost the UK's financial services industry outside London, according to the country's most powerful financial lobbying group.

TheCityUK published its general election recommendations on Thursday, ahead of manifestos from all the major parties.

The country’s major political parties are expected to launch their General Election manifestos next week ahead of the June 8 vote, which the Conservatives are expected to win in a landslide.

The question of what happens to the UK's financial services sector is especially important as Brexit approaches: the industry contributes £1 in every £10 to the economy and generates a trade surplus larger than all other net exporting industries combined.

TheCityUK's latest report, titled "Enabling growth, driving competitiveness," details several priority policy areas for the sector, including Brexit, infrastructure, fintech, and job growth. Here's what it's calling for:

Brexit

TheCityUK has abandoned its call for Britain to remain in the single market and is now calling instead for a "bespoke" deal with the EU which delivers mutual market access. It says the deal should be based on "mutual recognition and regulatory cooperation" and provide the same, or comparable, market access rights to those currently available.

The report adds: "It should also deliver a regime for recognising and enforcing judgments from UK jurisdictions in the EU and vice versa to ensure legal continuity."

This seems rather unlikely given that the EU have agreed that one of its key negotiating principles will be that the UK cannot "cherry pick" deals for certain sectors.

TheCityUK also calls for an early agreement on transitional arrangements to bridge the gap between Britain leaving the EU and any Brexit deal starting.

Focusing trade and investment policy outside Europe

The EU Single Market is the UK's largest export market, with around 44% of British exports in goods and services heading other countries in the EU in 2015. However, that figure has fallen consistently as trade with other countries has increased at a faster rate.

The report points out a figure from the European Commission itself: It predicts that "over the next ten to 15 years, 90% of world demand will be generated outside Europe."

The report says that "these markets must be a policy priority to benefit the wider economy." In practice that includes:

• Increasing regulatory coherence. The UK should "secure a leadership role in promoting and increasing support for the adoption of international standards, especially where global markets exist."

• Growing diplomatic networks. The report calls for the UK to "strengthen the Foreign and Commonwealth Office’s global network" and "enhance the UK’s capacity in international trade and investment promotion."

• Enhancing trade with developed and emerging markets. "Enhance trade and investment with developed markets, as well as continuing to grow relationships with high-priority emerging markets and assessing where others might represent important potential."

Fintech

The UK has been at the forefront of a fintech (financial technology) revolution, with investment in the UK scene increasing at over 2,000% in the last five years, according to the report.

TheCityUK calls for the next government to tackle cyber risks to the sector, which would also benefit the UK's growing cyber security sector.

It also calls on the government to promote the UK's fintech offering more actively to international markets — especially offering more actively the expertise offered by UK-based firms to fintech start-ups in overseas markets.

Job growth

The financial services sector employs 2.2 million people across the UK. The report calls for the next government to boost the competitiveness of regional financial centres by investing more in infrastructure and to work with companies to grow specialist industry clusters across the country in sub-sectors such as cyber and analytics.

Infrastructure

The report describes existing public infrastructure projects such as Crossrail, HS2, and Hinkley Point as "highly attractive investment opportunities" which should be funded privately where possible.

It says: "Government support for infrastructure projects must be carefully targeted, not using public funds to finance projects which could be financed by the private sector."

The government reportedly intends to use the finance sector to fund over half the £483 billion required for its infrastructure improvements planned by 2021.

Government 'must look beyond Brexit'

Miles Celic, chief executive of TheCityUK, said: "Our industry is a national asset, employing over 2.2 million people right across the UK in high productivity jobs – around two-thirds of whom are based outside London.

"Securing the right Brexit deal and navigating an orderly exit from the EU will be a key priority for the new government, but it must also look beyond that to ensure long-term economic strength.

"The UK is the world’s leading global financial centre and its continued success relies on the UK remaining an attractive and competitive place to do business. With the right policy environment in place, the industry can support this agenda, helping to create more jobs and drive growth around the country."

These are the City of London's General Election priorities for Brexit, fintech, and job growth

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