{"id":87037,"date":"2017-12-05T20:40:13","date_gmt":"2017-12-05T20:40:13","guid":{"rendered":"http:\/\/mostafa.openonline.co.uk\/?guid=7ad1bdb8710fc2166a0269829f934fe3"},"modified":"2017-12-05T20:40:13","modified_gmt":"2017-12-05T20:40:13","slug":"speech-thecityuk-annual-dinner-chancellors-speech","status":"publish","type":"post","link":"https:\/\/mostafa.openonline.co.uk\/?p=87037","title":{"rendered":"Speech: TheCityUK Annual Dinner: Chancellor’s speech"},"content":{"rendered":"
\n

John [McFarlane], thank you for inviting me here tonight\u2026<\/p>\n

\u2026and thank you to the CityUK for hosting us at this wonderful venue\u2026<\/p>\n

\u2026the home of the Worshipful Company of Plaisterers.<\/p>\n

Some of you may not be aware that The Plaisterers can be traced back as far as the twelfth century\u2026<\/p>\n

\u2026to when the first Mayor of London, Henry Fitz-Ailwin ordered that all cook-shops be plastered and limewashed
\nfor protection against fire\u2026<\/p>\n

\u2026the irony being that the first two halls the Company owned would later themselves be destroyed by fires.<\/p>\n

Our first Mayor of London was such a success that he went on to be entrusted with raising the ransom funds after<\/p>\n

Richard the Lionheart was captured on return from a crusade near Vienna\u2026<\/p>\n

\u2026some 100,000 pounds of silver\u2026<\/p>\n

\u2026which, to put in perspective, was 2-3 times the annual income of the Crown at the time\u2026<\/p>\n

\u2026I\u2019d be interested to hear whether the Treasury at the time considered this value for money.<\/p>\n

Tonight, we celebrate our world leading financial and professional services industry in the UK.<\/p>\n

The key phrase is \u201cworld leading\u201d\u2026<\/p>\n

\u2026and I\u2019ll say a word or two about the government\u2019s plan to keep it that way\u2026<\/p>\n

\u2026through our negotiations with the European Union and beyond\u2026<\/p>\n

\u2026and then I\u2019ll let you get on with your dinner.<\/p>\n

First, I\u2019d like to thank John for that introduction\u2026<\/p>\n

\u2026and for all the work of the CityUK in representing the best of Britain\u2019s financial and professional services.<\/p>\n

I\u2019d particularly like to pick up on your articulation of the need to look beyond Brexit\u2026<\/p>\n

\u2026I absolutely agree that we should not take our historic positon as a global leader for granted\u2026<\/p>\n

\u2026and nor should we take for granted the economic model that has brought us so much success over the years\u2026<\/p>\n

\u2026one that has brought the UK back from the brink of the financial crisis\u2026<\/p>\n

\u2026delivered record employment levels\u2026<\/p>\n

\u202619 consecutive quarters of growth\u2026<\/p>\n

\u2026our deficit down by three quarters\u2026<\/p>\n

\u2026and national debt as a share of GDP finally about to begin to fall.<\/p>\n

And when we hear the siren voices calling the young and impressionable to test out economic models that have actually been tried\u2026<\/p>\n

\u2026and have failed\u2026<\/p>\n

\u2026with such disastrous consequences before\u2026<\/p>\n

\u2026both here and abroad\u2026<\/p>\n

I believe it is incumbent on all of us\u2026<\/p>\n

\u2026in business and in government\u2026<\/p>\n

\u2026loudly to make the case, for a market economy, for sound money, and free trade\u2026<\/p>\n

\u2026while recognising of course that the economy will be fundamentally changed by the new technologies\u2026<\/p>\n

\u2026that offer both a new route to productivity enhancement\u2026<\/p>\n

\u2026as well as new challenges as a society.<\/p>\n

For as I set out in my Budget<\/a> a couple of weeks ago\u2026<\/p>\n

\u2026it is only by embracing the technology of the future that we can build an economy that is fit for the future.<\/p>\n

And it is our future that I want to talk about tonight.<\/p>\n

Because, yes, we face economic challenges\u2026<\/p>\n

\u2026our productivity growth is far too low\u2026<\/p>\n

Of course, our negotiations with the EU are in a critical phase\u2026<\/p>\n

\u2026and getting the right deal\u2026<\/p>\n

\u2026and an implementation period to allow us to adjust to it\u2026<\/p>\n

\u2026will be vitally important in the short-term.<\/p>\n

But the long-term future of Britain\u2019s economy is about much more than these negotiations.<\/p>\n

We are on the brink of a technological revolution\u2026<\/p>\n

\u2026and this time, Britain is genuinely at the forefront of it\u2026<\/p>\n

\u2026and if we are to deliver higher living standards for people up and down this country\u2026.<\/p>\n

\u2026we must prepare Britain so that it can embrace this future\u2026<\/p>\n

\u2026and seize the opportunities that it brings.<\/p>\n

And this is as important for our financial and professional services sector as for any other.<\/p>\n

Not only because you represent 11% of our economy\u2026<\/p>\n

\u2026one in 14 of all UK jobs (two-thirds of them outside of London)\u2026<\/p>\n

\u2026and contribute over \u00a380 billion of tax revenues\u2026<\/p>\n

\u2026[which I am particularly happy about.]<\/p>\n

But because this sector has been at the forefront of innovation and technological change for many centuries\u2026<\/p>\n

\u2026and it is once again.<\/p>\n

Our success, historically, has been based on being the most open and most dynamic financial sector in the world\u2026<\/p>\n

\u2026on the ability to continuously innovate and adapt as the world around us changes.<\/p>\n

We did it in Elizabethan London when trade turned the City into the world\u2019s biggest international banking bazaar\u2026<\/p>\n

\u2026we did it in the post-war period when the dollar became the pre-eminent global reserve currency, but London\u2019s more dynamic approach allowed it to fight off competition from New York\u2026<\/p>\n

\u2026and we\u2019re doing it now \u2013 for example, in FinTech, a sector that barely existed a decade ago \u2013 that now employs
\n60,000 people right across the UK\u2026.<\/p>\n

\u2026and received a record \u00a32.1 billion investment in the first three quarters of this year.<\/p>\n

And as The CityUK are quick to remind us\u2026<\/p>\n

\u2026it isn\u2019t just about financial services\u2026<\/p>\n

\u2026it is about the whole ecosystem we have built here over decades\u2026<\/p>\n

\u2026with the critical mass of banking, asset management, insurance, law, accountancy, consulting, and other vital
\nbusiness support services.<\/p>\n

It is this government\u2019s priority to achieve an outcome from our negotiations with the European Union that maintains effective, mutual access to European markets\u2026<\/p>\n

\u2026and ensures the UK remains a global financial and professional services hub.<\/p>\n

But I have no doubt, that whatever the outcome of the negotiations\u2026<\/p>\n

\u2026the UK has the history\u2026<\/p>\n

\u2026the advantages of our timezone, our language, and our legal system\u2026<\/p>\n

\u2026and the talent, the capital markets, and the tech sector\u2026<\/p>\n

\u2026to remain the world\u2019s leading financial centre.<\/p>\n

Passporting did not create the City of London.<\/p>\n

And when we look back in twenty years\u2026<\/p>\n

\u2026what will define the UK\u2019s success will be less how we handle Brexit\u2026<\/p>\n

\u2026than how we have grasped the opportunities, and embraced the challenges, of technological change.<\/p>\n

The facts speak for themselves.<\/p>\n

Since the referendum, professional services have grown three times as fast as the whole economy\u2026<\/p>\n

\u2026we\u2019ve already seen double the amount raised in London through IPOs this year as in the whole of 2016\u2026<\/p>\n

\u2026and London has once again been named the world\u2019s number one financial centre.<\/p>\n

But we cannot and will not rest on our laurels.<\/p>\n

We must act now to ensure that in the face of rapid global change\u2026<\/p>\n

\u2026the UK remains the number one place in the world to conduct financial and professional services business.<\/p>\n

Our regulatory environment must continue to adapt\u2026<\/p>\n

\u2026it\u2019s not just about making sure regulation doesn\u2019t get in the way of business\u2026<\/p>\n

\u2026it\u2019s about using the British skill for regulatory innovation as a comparative advantage.<\/p>\n

That\u2019s why we have given our regulators a mandate to ensure we have the world\u2019s most accommodative regime
\nfor FinTech development\u2026<\/p>\n

\u2026from the FCA\u2019s \u2018regulatory sandbox\u2019\u2026<\/p>\n

\u2026to the Bank of England\u2019s \u2018FinTech Accelerator\u2019.<\/p>\n

And we must reach out across the globe to build new relationships and unlock new markets\u2026<\/p>\n

\u2026as we have done by becoming the Western Hub for Renminbi trading\u2026<\/p>\n

\u2026and striking four FinTech Bridge agreements, as well as working on a fifth with Australia which I hope we\u2019ll sign soon.<\/p>\n

Tomorrow we go further\u2026<\/p>\n

\u2026my colleague, Steve Barclay the Economic Secretary to the Treasury, will launch our Second Investment Management Strategy to ensure our world leading asset management industry continues to thrive:<\/p>\n

We\u2019ve established a new Asset Management taskforce to shape the strategy and lead work between government, regulators and industry to enhance the UK\u2019s position as Europe\u2019s leading asset management centre;<\/p>\n

We\u2019re backing new centres of excellence, linked to higher education institutions, to build a pipeline of talent and expand our skills base for the future;<\/p>\n

We\u2019re supporting projects to position the UK as a leader in FinTech asset management solutions, such as developing lower cost digital funds;<\/p>\n

\u2026and finally, we will consult in due course on how we can improve the tax treatment of short-term business visitors from foreign branches \u2013 something which I know has been an issue for financial and professional services firms.<\/p>\n

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

You will forgive me if I don\u2019t offer a blow-by-blow commentary of the last 48 hours\u2026<\/p>\n

\u2026I\u2019ll leave that sort of speculation to the newspapers\u2026<\/p>\n

\u2026although I have had a very productive day in Brussels\u2026<\/p>\n

\u2026but I can tell you that we have made good progress in the negotiations over the last few weeks\u2026<\/p>\n

\u2026and I am optimistic that we will achieve sufficient progress at the Council next week, and move on to the next stage of the negotiations.<\/p>\n

And in those negotiations on our future relationship\u2026<\/p>\n

\u2026I have every confidence that we will reach an outcome that supports the UK\u2019s position as the number one global financial centre\u2026<\/p>\n

\u2026an outcome that represents a good deal for our Financial and Business Services industry.<\/p>\n

At my Mansion House speech in June, I spoke of three principles to underpin a good deal on financial services:<\/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 a permanent, stable, future financial services relationship.<\/p>\n

I\u2019ll touch on each of these briefly.<\/p>\n

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

Because one of the biggest boosts we can provide to the economy\u2026<\/p>\n

\u2026of both the UK and the EU\u2026<\/p>\n

\u2026is making early progress on delivering certainty and clarity about our future relationship with the EU\u2026<\/p>\n

\u2026with a time-limited implementation period of around two years\u2026<\/p>\n

\u2026when we will have left the EU and will therefore be outside the EU Customs Union and the Single Market\u2026<\/p>\n

\u2026but during which we will replicate the effects of the Customs Union and the Single Market\u2026<\/p>\n

\u2026with reciprocal access to each other\u2019s markets\u2026<\/p>\n

\u2026and a harmonised customs arrangement, ensuring a low friction border.<\/p>\n

Giving businesses continuity, and certainty, to plan and invest with confidence.<\/p>\n

The second principle is that our future relationship should be as deep and broad as possible.<\/p>\n

The Prime Minister\u2019s vision is of a deep and special partnership\u2026<\/p>\n

\u2026based on strong mutual respect and friendship\u2026<\/p>\n

\u2026close collaboration on security\u2026<\/p>\n

\u2026and freest and most frictionless trade possible.<\/p>\n

Something more ambitious than any existing mere free trade agreement\u2026<\/p>\n

\u2026something that properly reflects our 43 years of membership of the EU and the common regulatory starting point
\nthat follows from it.<\/p>\n

The UK and the EU\u2019s financial services sectors operate as a single marketplace.<\/p>\n

And we must protect this\u2026<\/p>\n

\u2026because a fragmentation of this European financial services market will only lead to poorer quality, higher priced
\nservices for business and citizens across Europe\u2026including in the UK.<\/p>\n

And that, in turn, would erode the global competitiveness of firms across the full breadth of the EU economy.<\/p>\n

\u201cI am convinced that for Europe as a whole\u2026it\u2019s in our own interests to have a strong financial centre in London.<\/p>\n

We can\u2019t move the whole business to Europe and it\u2019s better to have it in London than in Singapore or elsewhere in the world\u201d<\/p>\n

Those are not my words.<\/p>\n

They are the words of Wolfgang Sch\u00e4uble the former German finance minister.<\/p>\n

He is right.<\/p>\n

Paris and Frankfurt wouldn\u2019t be the winners from a fragmented European market\u2026<\/p>\n

\u2026it would be New York, Singapore, and Hong Kong\u2026<\/p>\n

\u2026leaving Europe as a whole, weaker and poorer.<\/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 are durable and fair\u2026<\/p>\n

\u2026with the effect on cross-border markets well understood and transparently agreed between us from the outset.<\/p>\n

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

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

And that takes me on to the third principle:<\/p>\n

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

Over the past ten years, Britain has worked tirelessly with the EU to deliver financial stability and fair competition.<\/p>\n

We devised the rules that have seen our banking sector recover from the Global Financial Crisis\u2026<\/p>\n

\u2026and after we leave the EU we will continue to work closely to strengthen the global financial system and protect our taxpayers.<\/p>\n

There will be no race to the bottom.<\/p>\n

We will need intensive regulatory cooperation for rule-making to ensure parity of outcomes\u2026<\/p>\n

\u2026and we will need new mechanisms to address key cross-cutting issues, from dispute resolution to data
\nprotection.<\/p>\n

We will need a deep and comprehensive framework of standards\u2026<\/p>\n

\u2026that ensures unprecedented transparency and supervisory cooperation.<\/p>\n

It is only in this way that we can entrench and enhance financial stability\u2026.<\/p>\n

\u2026that we can protect consumers and taxpayers\u2026<\/p>\n

\u2026and ensure that the open and cooperative system we have built together since 2008 is maintained and strengthened\u2026<\/p>\n

\u2026for the immeasurable benefit of the economies of both the UK and the EU.<\/p>\n

We do not expect all of this will be easy.<\/p>\n

But it is worth the effort.<\/p>\n

And it will take intense effort from all of us, in government and in business\u2026<\/p>\n

\u2026in the UK and in the EU\u2026<\/p>\n

\u2026to continue making the case for an outcome that protects jobs and prosperity\u2026<\/p>\n

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

It\u2019s a challenge to which you will rise\u2026<\/p>\n

\u2026as you have risen to challenges that have gone before.<\/p>\n

I am confident that the UK\u2026<\/p>\n

\u2026and the UK financial and professional services sector\u2026<\/p>\n

\u2026will continue to flourish\u2026<\/p>\n

\u2026adapting to whatever the world throws our way\u2026<\/p>\n

\u2026and seizing the opportunities of the technological revolution which is upon us\u2026<\/p>\n

\u2026and together I know that, we will build an economy that is fit for the future.<\/p>\n

Thank you.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

The Chancellor of the Exchequer, Philip Hammond’s speech at TheCityUK’s 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\/87037"}],"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=87037"}],"version-history":[{"count":0,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=\/wp\/v2\/posts\/87037\/revisions"}],"wp:attachment":[{"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=87037"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=87037"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mostafa.openonline.co.uk\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=87037"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}