Positive impact of the financial sector on society and the economy in the UK
Andrew Griffith, Economic Secretary to the UK Treasury, writes in The New Statesman magazine an article in favour of the UK financial sector due to its positive impact on society. Not only for its contribution to the economy, which is essential to maintain well-funded public services, but also because financial activity in itself helps to cover risks that could otherwise cause serious harm to individuals if they materialise (e.g. home insurance premiums), and offers credit, savings, investment or payment solutions to all income levels and institutions, promoting the development of personal and business projects and positively impacting on social wellbeing.
- The financial services sector plays a crucial role in the proper functioning of public services through its contribution to economic development. Directly or indirectly, the sector's contribution to the economy amounts to 12% of GDP, which is an essential contribution to the public revenue needed to develop public services (according to the article, the sector's contribution could be equivalent to half of the budget allocated to the National Health Service).
- Financial services are for everyone. It is not a question of wealth. Financial services also benefit those with "modest" incomes, despite the widespread belief that this is not the case. For example, the financial sector has historically contributed to risk sharing, since the Great Fire of London in 1666, after which insurance policies and premium payments were born. But also, by offering solutions to families and businesses to develop projects that benefit society as a whole.
- The financial sector´s success is vital for the economy. Many countries are competing to reach the leading position achieved by the UK. Ongoing legislative reforms will deliver improvements for investors, savers and pensioners but also aim to maintain that leading position. For Andy Griffith, the UK government's vision is to keep the UK as the place where the world comes to do Business.
Filter results
According to AFME, a clearer, more coherent, and proportionate regulatory environment, without unnecessary layers and focuses on growth and competitiveness, is keyl to increase investor confidence, unlock private capital and deepen European capital markets
According to the Center for the Governance of Change at IE University, Europeans support technological progress if it reinforces security, inclusion, and social welfare; but resist it when change feels imposed, opaque, or misaligned with their values.
According to a recent report released by CEPS, European financial regulators should adopt competitiveness as a formal secondary objective, following the precedent established by the UK's Financial Services and Markets Act 2023.
According to the OECD. SMEs and start-ups that grow rapidly contribute significantly to job creation, economic growth and competitiveness. Indeed, SMEs that grow by one-third over a three-year period, contribute about as much to job creation as large firms.
According to @McKinsey, banks must prepare for a new growth curve. Strategic precision —the ability to combine technology, capital discipline, and deep customer insight— will distinguish the leaders from the laggards.
According to Kristalina Georgeva IMF Managing Director, lifting growth requires three things: one, regulatory housecleaning to unleash private enterprise; two, deeper regional integration; and three, preparedness to harness AI.
According to The European House – Ambrosetti, the European Union has an opportunity to boost competitiveness and growth by simplifying regulatory and supervisory frameworks, particularly in the areas of sustainability and the financial sector.
According to Ramón Casilda Béjar, Spain, in today’s complex geopolitical landscape, has the opportunity to strengthen its role as a bridge and connecting country between Ibero-America and the European Union, revitalizing investment flows in both directions.
According to @ECB, in moments of acute stress, the public often turns to physical currency as a reliable store of value and a resilient means of payment, underscoring the crucial role it plays above and beyond everyday transactional convenience
According to Juan S. Mora-Sanguinetti, in Spain a 10% increase in regulatory volume leads to a 0.5% drop in employment in companies with fewer than 10 employees.
According to Hélène Rey “In a world where stablecoins, particularly those pegged to the dollar, become an important global payment tool, we must brace ourselves for substantial consequences”.
@judith_arnal proposes reforms for the EU to advance regulatory simplification, starting with consensus on its meaning, with competitiveness as a pillar, plus coordination mechanisms and a governance rethink.