Financial and professional services underpin the country’s global competitiveness. The Budget should support, not punish, banks, writes Chris Hayward

When the Chancellor rises at the despatch box this week, she will confront a set of fiscal choices that will shape Britain’s competitiveness for years to come. The choices are stark, but so too is the opportunity for growth.

Markets have reacted nervously to mixed signals on tax and spending, and businesses across the country are awaiting clarity before committing capital. The Office for Budget Responsibility’s downgrade to productivity forecasts has only reinforced concerns about the UK’s medium-term growth prospects, widening an already significant investment gap. Yet amid this uncertainty, one constant remains: financial and professional services are the bedrock of the British economy and will be central to any credible strategy for raising long-term growth.

The Square Mile alone generates more than £110bn in annual output and supports around 676,000 jobs, 25 per cent more than before the pandemic. This is not merely a London phenomenon. From Belfast to Birmingham, Bristol to Aberdeen, financial and professional services fuel local economies, fund public services and support innovation across the country.

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