A thriving London boosts all of UK, says CBI chief – Daily Business

Rain Newton-Smith: UK benefits from London (pic: DB Media Services)

CBI chief executive Rain Newton-Smith will today urge the Chancellor to avoid adding to the tax burden on the financial services sector that would be an “own goal for our competitiveness.”

Ms Newton-Smith will warn that taxes in the UK are already higher than in other global centres and risk stifling growth.

Speaking at a CBI reception at the British Museum, she will champion the contribution of London’s financial services sector to growth across the UK, noting that it supports more than 650,000 jobs outside the capital and contributes more than £200 billion to the UK economy each year. 

She will argue that growth comes from “helping struggling sectors, not holding back thriving ones”, and call on the government to be bold on the practical decisions that determine whether investment happens in the UK or elsewhere.

Ms Newton-Smith will argue that when London and its leading industries thrive, the benefits ripple across the country through jobs, investment, stronger supply chains and greater prosperity. 

“It’s so important that we recognise that when our cities are great, our sectors are booming and our businesses are brilliant – the benefits don’t stop with them.  They ripple out, to other regions, to other sectors and to people right across the UK.” 

“When London thrives, it creates jobs across the UK. The strength of London sustains supply chains, attracts investment and supports growth in every part of the country. When London thrives, that benefits everyone.

“Whether it is London or Edinburgh, we should be proud of the places and sectors where the UK is already succeeding. And help others to join them. 

“If we get those conditions right, London can keep leading, our strongest sectors can keep growing and more businesses and communities across the UK can share in that success.”

Ms Newton-Smith will call on the Chancellor to use the budget to give business breathing space and back wealth creation. 

“Because breathing space gives businesses room to invest. To hire. To innovate. To make the decisions that drive growth in every postcode,” she says, adopting Labour’s latest slogan.

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