{"id":84352,"date":"2017-09-13T19:44:53","date_gmt":"2017-09-13T19:44:53","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=faf9d312180d160198ccb64ce02d4428"},"modified":"2017-09-13T19:44:53","modified_gmt":"2017-09-13T19:44:53","slug":"speech-uk-finance-dinner-chancellors-speech","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=84352","title":{"rendered":"Speech: UK Finance Dinner: Chancellor’s speech"},"content":{"rendered":"
\n

Thank you for inviting me here tonight\u2026<\/p>\n

\u2026at the inaugural UK Finance Annual Dinner\u2026<\/p>\n

\u2026it\u2019s good to see this new super-charged trade body up and running and looking out for the interests of British finance, banking, markets and payments companies from up and down the UK.<\/p>\n

UK Finance may only be a few months old\u2026<\/p>\n

\u2026but you represent an industry that is somewhat older.<\/p>\n

It was only last year that we discovered just how old.<\/p>\n

Archaeologists were digging just a few yards away during excavations for Bloomberg\u2019s new European Headquarters\u2026<\/p>\n

\u2026where they found dozens of old tablets, which represent the oldest known record of Roman writing in England.<\/p>\n

What the tablets revealed is that by the mid first century AD this was a thriving, commercial and financial centre.<\/p>\n

Junius the cooper was selling barrels to Tertius the brewer\u2026<\/p>\n

\u2026it turns out even two thousand years ago alcohol was playing a central role in the life of the city.<\/p>\n

And then there\u2019s the tablet that contains a friendly warning to a businessman that he has extended credit unwisely because \u201cthey are boasting through the whole market that you have lent them money.\u201d<\/p>\n

\u2026obviously something that never happens these days.<\/p>\n

Finance has changed somewhat in the centuries since.<\/p>\n

Tablets were replaced with coins; coins were replaced with notes; notes were replaced with plastic; and\u2026well we\u2019re back with tablets.<\/p>\n

But that is why this industry is so successful.<\/p>\n

It\u2019s ability to innovate and develop as the world around it changes.<\/p>\n

Fintech – a sector that barely existed a decade ago \u2013 now employs 60,000 people.<\/p>\n

Since the first banking app appeared six years ago, around 20 million people in the UK have become users.<\/p>\n

And contactless payments have risen eight-fold in the past two years\u2026<\/p>\n

\u2026with cash usage falling\u2026<\/p>\n

\u2026which as Chancellor of the Exchequer, I am very pleased about!<\/p>\n

And the reason it is so pleasing to speak here tonight\u2026<\/p>\n

\u2026at the launch of this new trade body\u2026<\/p>\n

\u2026is that it is here in the UK\u2026<\/p>\n

\u2026where we have the financial innovation\u2026<\/p>\n

\u2026the venture capital\u2026<\/p>\n

\u2026and the world\u2019s number one financial centre\u2026<\/p>\n

\u2026where we are leading the world in the FinTech revolution\u2026<\/p>\n

\u2026and changing the way in which financial services are accessed and delivered.<\/p>\n

It is my priority as Chancellor to ensure that the UK remains the financial services centre of the world.
\nAnd the global hub of fintech.<\/p>\n

We have the timezone, the language, the legal system, the talent, the capital markets, and the tech centre to succeed.<\/p>\n

And we have a government which is determined to create the regulatory and tax environment for these new markets to succeed.<\/p>\n

We have given our regulators a clear mandate to do so\u2026<\/p>\n

The FCA<\/abbr> have led the way internationally with their \u2018regulatory sandbox\u2019\u2026<\/p>\n

\u2026allowing companies to test their products with consumers in a safe environment.<\/p>\n

The Bank of England\u2019s FinTech Accelerator gives companies the chance to work on innovative central banking solutions\u2026<\/p>\n

\u2026while the Bank is broadening access to its settlement accounts and payment systems.
\nAnd in the last year we have introduced a new investors\u2019 relief, to support investment into firms looking to scale up.<\/p>\n

But we can do more.<\/p>\n

And we will do more.<\/p>\n

But it has to be a collaborative effort.<\/p>\n

On government\u2019s part we must invest in the skills and the infrastructure \u2013 to ensure the UK remains the most attractive place to start and grow a business.<\/p>\n

And for your part, businesses must invest in raising the productivity of your employees, and ensure that we are leading the world in the ground breaking innovation that will be so critical to succeeding in the economy of the future.<\/p>\n

At the Autumn Statement I launched \u00a323 billion of additional government investment<\/a> in infrastructure and innovation\u2026<\/p>\n

\u2026that will take public investment to nearly half a trillion pounds over the next five years.<\/p>\n

At the Spring Budget<\/a> I unveiled our plans to overhaul our technical education system\u2026<\/p>\n

\u2026to equip our young people with the skills they will need in the decades to come.<\/p>\n

And our Industrial Strategy will seek to tackle Britain\u2019s distortive regional productivity disparity.<\/p>\n

But that is just one side of the coin.<\/p>\n

We need private investment too.<\/p>\n

It is businesses in this room that have built the world\u2019s pre-eminent financial centre\u2026<\/p>\n

\u2026the UK\u2019s financial services industry has around \u00a37 trillion of assets under management\u2026<\/p>\n

\u202660% of European capital market business is conducted through the UK\u2026<\/p>\n

\u2026and UK firms provided more than \u00a31.1 trillion of lending to the EU 27 in 2015.<\/p>\n

Yet some of the highest potential UK start-ups still struggle to obtain the finance that they need to grow into world-leading firms.<\/p>\n

That is why the Prime Minister appointed Sir Damon Buffini to chair an expert panel as part of the Patient Capital review\u2026<\/p>\n

\u2026and why we launched our Patient Capital Consultation<\/a> over the summer\u2026<\/p>\n

\u2026which puts forward proposals for a new National Investment Fund\u2026<\/p>\n

\u2026with the government and private sector working together to mobilise the investment our growth businesses need\u2026<\/p>\n

\u2026examines the effectiveness of government\u2019s current tax interventions;<\/p>\n

\u2026and asks what more should be done to support some of the largest pools of capital in the UK to invest in those growth businesses.<\/p>\n

Because if we are to build a more productive society we need to harness this capital and encourage its investment in the areas of highest growth potential.<\/p>\n

Of course I recognise that for companies in this room a key issue is the outcome of the Brexit negotiations.<\/p>\n

And it won\u2019t surprise you to hear my top priority is securing an outcome that puts the economy, business, jobs, and prosperity first.<\/p>\n

And that includes securing a solution that protects our most important EU export sector \u2013 financial services.<\/p>\n

Today I chaired the first meeting of the Brexit Business Advisory Group, along with my colleagues David Davis and Greg Clark.<\/p>\n

And from this, and other discussions I have with business, it is very clear to me that getting clarity soon on issues such as transition, is of vital importance to business \u2013 and thus the economy.<\/p>\n

I can tell you we have made progress in the negotiations\u2026<\/p>\n

[Political content removed]<\/p>\n

\u2026publishing position papers to inform our negotiating position with the EU\u2026<\/p>\n

\u2026building on the principles I talked about when I was last at Mansion House in June<\/a>:<\/p>\n

The importance of a smooth and orderly exit\u2026<\/p>\n

\u2026the importance of preserving reciprocal access to each other\u2019s markets for goods and services\u2026<\/p>\n

\u2026and the importance of getting our future financial services relationship right.<\/p>\n

I want to say a brief word about these three principles.<\/p>\n

First, our intention that our withdrawal from the EU be as smooth and orderly as possible.<\/p>\n

I am clear that, whatever the ultimate outcome of the negotiations, an integral part of delivering that is through the negotiation of a time-limited interim period\u2026<\/p>\n

\u2026where we will have left the EU and therefore will be outside of the EU Customs Union and the Single Market\u2026<\/p>\n

\u2026but during which the UK and the EU 27 will retain access to each other\u2019s markets, and will operate a harmonised customs arrangement, ensuring a frictionless border.<\/p>\n

This will provide certainty, and avoid a cliff-edge for business and individuals during the transition from the current structure of membership to the deep and special partnership which we hope to agree with the EU.<\/p>\n

Second, as we negotiate our long-term future partnership with the EU, we want to maintain two-way access to each other\u2019s markets in goods and services.<\/p>\n

Because that\u2019s what business want.<\/p>\n

And it is also what the British public want.<\/p>\n

Polling has shown that people overwhelmingly believe free trade is positive for our economy, regardless of how they voted in the referendum.<\/p>\n

And that they want to continue our trading relationship with Europe.<\/p>\n

And they are right.<\/p>\n

Take the financial services sector.<\/p>\n

A fragmentation of European financial service markets would result in poorer quality, higher priced services for business and citizens across Europe.<\/p>\n

It would result in business being lost to New York and Hong Kong\u2026<\/p>\n

\u2026it would push up fixed-rate borrowing costs for homeowners across the continent\u2026<\/p>\n

\u2026it would push up costs for airlines hedging against fuel prices\u2026<\/p>\n

\u2026or farmers protecting themselves from foreign exchange risk when exporting their produce.<\/p>\n

So we want to protect our existing trading relationships with the EU.<\/p>\n

But we also want to ensure that the future trade arrangements we have with the EU work.<\/p>\n

And that is particularly important for financial services\u2026<\/p>\n

\u2026because no existing trade agreement, nor third-country access to the EU, supports the scale of reciprocal trade in financial services that exists between the UK and the EU.<\/p>\n

Delivering an outcome that protects the financial services infrastructure serving Europe will require detailed negotiation and a flexible and innovative approach.<\/p>\n

And that is the third principle.<\/p>\n

We will seek a new paradigm for our future trading relationship in financial services.<\/p>\n

We acknowledge that there are legitimate concerns among our EU colleagues about the oversight and supervision of financial markets here in the UK that are providing vital financial services to EU firms and citizens.<\/p>\n

We will address them by making forward-leaning proposals for greater transparency, cooperation, and agreed standards based on international norms.<\/p>\n

But, let me be clear, we will not accept protectionist agendas, disguised as arguments about financial stability.
\nWe will seek to agree new mechanisms around key issues, from dispute resolution to data protection.<\/p>\n

Domestically we will continue to have the most robust regulatory and supervisory regime \u2013 to protect our taxpayers from having to step in to deal with failure.<\/p>\n

Whatever the outcome of the negotiations, we must ensure that firms are able to operate within a workable regime at the point of exit and beyond.<\/p>\n

Further detail on our proposals will follow \u2013 but the papers we have published set out a starting point on these key areas of negotiation\u2026<\/p>\n

\u2026and I look forward to engaging with you all over the weeks and months ahead.<\/p>\n

I\u2019ll leave you with a final thought and let you get on with your main course.<\/p>\n

I am off to Budapest tomorrow to meet Visegrad 4 Ministers, and Tallinn on Friday \u2013 and I will be making all these points to my European counterparts.<\/p>\n

But this has to be a team effort\u2026<\/p>\n

\u2026 it is incumbent on all of us, in business and in government, to go on making the case for an outcome that protects jobs and prosperity\u2026<\/p>\n

\u2026in Britain, and across the EU\u2026<\/p>\n

\u2026and for a transition that takes us to it smoothly.<\/p>\n

We have to go on emphasising to contacts and supply-chain partners in Europe that this is a shared challenge, that needs a shared solution.<\/p>\n

We\u2019ve got off to a good start.<\/p>\n

But we still have a long way to go.<\/p>\n

I am confident that we will get to the right outcome\u2026<\/p>\n

\u2026that achieves early agreement on transitional arrangements\u2026<\/p>\n

\u2026that allows businesses to go on trading, investing, creating jobs and driving prosperity up and down this country, and across the continent \u2026<\/p>\n

\u2026and so protects the long-term interests of our people and our country.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Chancellor’s speech at the inaugural UK Finance Annual Dinner.<\/p>\n","protected":false},"author":8,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[13],"tags":[],"_links":{"self":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/84352"}],"collection":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=84352"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/84352\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=84352"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=84352"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=84352"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}