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  • Andrew Griffith – 2025 Speech to Conservative Party Conference

    Andrew Griffith – 2025 Speech to Conservative Party Conference

    The speech made by Andrew Griffith in Manchester on 6 October 2025.

    Conference, business builds Britain.
    It is business that takes ideas and turns them into reality.
    Takes jobs and turns them into livelihoods.
    And it is business that pays the nation’s bills.
    With strong business, everything is possible.
    I spent 25 years in business where I saw optimism at work every day.
    That is why I am optimistic.

    I know Britain can return to being a world-leading economy.
    Our country has huge strengths which even years more of this government will not diminish.
    The English language, respect for property, our deep, sophisticated financial markets, and a mix of the businesses that thrive globally.
    Around the world, people want what we produce.
    And they want our skills, our capital and our ideas.
    Thanks to the last Conservative government, we have an independent trade policy which allows us to sell not just to Europe but to our long-standing allies and most of the fastest growing economies on the planet.
    Compare that distinguished record on trade to the press release politics we’ve seen over the last year.
    The Prime Minister told us in May his US deal was signed, sealed and delivered.
    Yet tariffs remain.
    He told us he had a deal for pharmaceuticals.
    But it never materialised, and our drug companies are leaving.
    He told us he finally understood Brexit
    And he then went running back to Brussels to let them dictate our rules, killing our flexibility for future deals.
    It’s clear that Labour and the other parties simply don’t understand business.
    How could they? Unlike our Party, their ranks are full of professional politicians, trade unionists and the public sector.
    No government that understood business would ever have imposed a jobs tax and changes to national insurance thresholds which hurt those employing the most the hardest.
    Or the family business tax – a death tax.
    Or doubled rates on the very businesses which keep our high streets alive.
    And conference, no government that cared about British firms and British workers would ignore energy costs that are four times higher than our competitors.
    Instead of creating wealth, they attack it, driving away entrepreneurs, investors, and top talent.
    Too many of our best and brightest are exchanging Docklands for Dubai or Manchester for Milan.
    And what Labour do nationally, the Greens, Lib Dems and the nationalists do locally.
    Hostile planning policies frustrating businesses trying to expand.
    Blocking new infrastructure.
    And suffocating firms with traffic congestion, parking restrictions and red tape.
    The next government will fix this and more just as after the failed consensus of the seventies, Britain picked itself up, restoring our pride and our growth.
    But the process of change requires being honest about where we start.
    We are no longer the rich country many think we are.
    For too long we’ve been slipping down the international rankings in GDP per capita, competitiveness, and inward investment.
    Under Labour, Britain is competing in the veterans’ race – comparing ourselves to the G7 – when the real competition are those younger, fitter economies who are overtaking us.
    We Conservatives know that it is only private enterprise that creates growth, not government.
    There were moments in office where we strayed from that truth.
    More regulations, raising taxes, the state as nanny.
    Indulging the idea that government is the solution, when we know very often it is the problem.
    But the Conservative Party is under new management.
    And at the heart of our strategy is an approach that’s proud to champion wealth creators and risk takers.
    Creating a new generation of entrepreneurs and backing our businesses.
    I am announcing clear policies today which start that work.
    In our very first budget, we will repeal the family business tax which punishes success and dis-incentivises growth.
    We will build a tax system which values those who take a risk and helps the smallest businesses.
    And the next Conservative government will actively reverse the job destroying measures in Labour’s Unemployment Rights Bill.
    A Bill which allows strikes to be called even if just a tiny fraction of the workforce vote.
    A Bill which will destroy job opportunities for young people whilst topping up Labour’s political fund without workers being given the choice.
    And the opposition to this terrible Bill in Parliament has been led by your Conservative shadow business team.
    David Hunt and Andrew Sharpe in the House of Lords.
    My shadow Ministers Harriet Baldwin, Gareth Davies and my PPS, Ali Griffiths in the Commons.
    Not by any other party. By the Conservative Party.
    And there is more.
    I understand there are far too many hurdles for small businesses to jump.
    Red tape that steals away the precious time of those who run them.
    Take HMRC, an organisation which literally tried to turn its helplines off for six months of the year.
    We say ‘enough’. That is unacceptable.
    So, within weeks of entering government, we will that ensure every time a small business contacts HMRC, they are given the opportunity to rate their experience in the same way as companies seek customer feedback.
    No more hanging on the phone for an hour with no one held accountable.
    No one loves paying their taxes. But the taxman needs to respect those whose hard work and enterprise pays their salaries.
    Nowhere. Nowhere is that more important than the self-employed.
    They’re risk-takers, striking out on their own, often with nothing more than a laptop and a belief they can make it work.
    That’s why we commit today to doing better for the self-employed. And that includes looking again at reforming IR35.
    Because if Britain is to have ladders of opportunity, then the self-employed need to be able to climb them.
    Similarly, opening a bank account today is so hard it is a miracle anyone starts a business at all.
    It can take weeks or even months to do what other countries do in minutes.
    It shows just how far our regulators have lost the plot and it’s a brake on growth we cannot afford.
    So, we will transform a process which makes banks treat you as guilty until proven innocent.
    From the tone at the top of the regulators to repealing EU era rules, we have a clear plan, and we will fix this.
    So: scrapping the family business tax, reversing the Unemployment Bill, easier bank accounts and a better service from HMRC.
    Real policies that will make a real difference.
    And, where we can, we need a tax framework which shows our support with actions not words.
    No sector has been hurt harder by Labour’s onslaught against enterprise than hospitality, retail, and leisure/
    89,000 jobs lost in the hospitality sector alone since Rachel Reeves’ Autumn Budget.
    One of her first actions in office was to more than double business rates for many of our high street businesses by cutting the relief that previous Conservative governments introduced.
    Because of the choices she’s made, the life in our high streets is ebbing away.
    And we know the heart of our communities are suffering.
    So, we want to give them hope.
    Today, we are announcing that when we return to government, we will introduce a permanent, one hundred per cent rate relief in business rates for retail, hospitality, and leisure.
    250,000 businesses will benefit from that change.
    Pubs, shops, restaurants struggling across the country will be saved.
    And our high streets will get an enormous boost.
    But conference there’s one more thing.
    We want to reignite a culture of entrepreneurship in Britain.
    To support and celebrate those who take a risk.
    A mission the like of which we’ve not seen since my friend and mentor, Lord David Young was Mrs Thatcher’s Secretary for Trade and Enterprise.
    To create a new generation of entrepreneurs.
    As Business Secretary, I want to see young entrepreneur schemes flourish in every school and college in the country.
    Building on existing schemes, delivered by people who’ve been there and done it and who want the next generation to succeed.
    We will provide the support to make this happen because this is what we believe a stronger economy requires.
    So, Conference, let me be clear.
    The Conservative Party as the party of enterprise, the party of the entrepreneur, the party of business.
    On the side of the pub landlord, the restaurateur, the small business owner, the self-employed, and the family business.
    Those who work for themselves and give work to others.
    The builders, not the blockers.
    Those that make, not those that take.
    That’s who we support, that’s who we believe in, that’s who our government will serve.
    Nations that seize opportunity, rise.
    We will seize that opportunity, and together we will make Britain’s economy strong again.
    Thank you.
    ‍

  • Andrew Griffith – 2025 Speech on British Steel

    Andrew Griffith – 2025 Speech on British Steel

    The speech made by Andrew Griffith, the Shadow Industry Minister, in the House of Commons on 22 April 2025.

    I thank the Minister for advance sight of her statement, and I join her in thanking the Scunthorpe workers for their efforts over the last few weeks.

    We are here once again because the Government had no plan—they failed to prepare, they bungled negotiations, and they took too long to listen to the warnings. What do we have to show for it? We have this botched nationalisation and a potential bill for the taxpayer stretching into the billions. I say billions, but it remains entirely unclear how much this bungled 11th-hour decision will cost, while the assets still belong to China. I hope that Members across the House will agree that this is a complete mockery of transparency and accountability, and I hope that the relevant Select Committees will take it upon themselves to conduct their own inquiries. Instead of a statement from the Treasury today, the Chancellor is running to the International Monetary Fund in Washington to explain how she broke the UK economy. Steel nationalisation, the IMF downgrading growth forecasts, trade union summits in No.10—it is all sounding a bit 1970s.

    The simple problem is that we do not know the answers to any of these questions because the Government have failed to publish an impact assessment. Will the Minister confirm to the House when they plan to do so? Has anyone in government asked the Office for National Statistics whether British Steel will now be classified as a publicly owned entity? Has the ministerial team discussed the impact of the takeover with the Chancellor on her already evaporated fiscal headroom? To date, how much has the Department spent, or how much has it committed to underwrite—that is a straightforward question that deserves an answer? Given that her Department had no budget for revenue support of steel, has the Minister been able to secure additional funds from the Treasury, so that other sectors or support for British exporters do not pay the price?

    We have seen no further detail of the Government’s proposed steel strategy, or any confirmation of longer-term plans to protect British steelmaking. Labour Members refused to back a coking coalmine to produce some of the raw materials that blast furnaces rely on. Instead, they wait for shipments to arrive from halfway around the world. Most importantly, the Government have not set out how they intend to reduce the enormous burden of sky-high energy costs. Instead, the Secretary of State for Energy Security and Net Zero seems dead set on delusional policies that drive energy prices in this country even higher. We cannot make steel sustainably when we have the highest energy prices in Europe. Prices for industrial energy in Birmingham in this country are four times higher than those in Birmingham Alabama. We cannot make steel if we do not have coal.

    As Nissan’s Alan Johnson said today, the “simple fact” is that the UK is

    “too expensive… Once you’ve paid your electricity, gas, NICs we are too expensive—any industrial strategy that does not tackle that is a waste of time.”

    Well, we are here once again. There is no steel strategy, no industrial strategy, no export strategy and no energy strategy. Perhaps when she replies the Minister can share a single strategy that this Government actually possess.

    Sarah Jones

    It is getting harder and harder to understand quite what the Opposition’s policy is on steel. It is all over the place. On the one hand, they ask us questions about costs. They say they had negotiated a modernisation plan with British Steel, but they will not tell us how much money they were willing to throw at that plan. Their proposal, apparently, was to build on two sites. If Jingye was asking us for £1.2 billion to build on one site, how much taxpayers’ money were the Government putting on the table to fund two? We need answers to those questions.

    On nationalisation, last week the shadow Secretary of State for Business and Trade, who was, as we know, Financial Secretary to the Treasury when Liz Truss crashed the economy, said that he backed full nationalisation of British Steel. On the other hand, this morning the Leader of the Opposition said on Radio 4 that nationalisation should be the “last resort.” It seems a bit muddled. Finally, the hon. Member asked questions about the cost of energy pricing, forgetting of course that industrial energy prices doubled under the Tories. UK Steel, the trade body for the steel industry, is clear and has said that it is

    “the UK’s reliance on natural gas power generation”

    that leaves us with higher prices than our international allies. It is not too much clean energy, but too little.

    The hon. Member asked a reasonable question about the costs. I hope he will understand that matters at the moment are sensitive and commercially confidential, and I hope he will be assured that we will publish accounts in due course. We are securing materials and reviewing things such as health and safety, and other critical roles. Regular meetings are happening between the Departments and British Steel, as he would expect, and of course we will publish those details in due course. He asked about the coalmine. British Steel has told us directly that it could not use that coal because of the sulphur content. We also need coke ovens to turn coal into coke, and the coke ovens at British Steel were closed on his watch several years ago. The reality is that the Tories failed the British Steel sector, and this Labour Government are securing it.

  • Andrew Griffith – 2024 Speech at LEAP ’24

    Andrew Griffith – 2024 Speech at LEAP ’24

    The speech made by Andrew Griffith, the Science Minister, in Riyadh, Saudi Arabia on 4 March 2024.

    Good afternoon.  It’s a pleasure to be here.

    I must start by thanking the patron of this conference and our gracious host, His Excellency Minister AlSwaha, and all of the teams behind this fantastic event.

    This is my second visit to the dynamic City of Riyadh in a few months and it is good to be back.

    The immense science and innovation ambition of the Kingdom in its Vision 2030 is clear and commendable.

    In its four priorities – health and wellbeing, sustainability, energy and economies of the future – Saudi Arabia has shown that it is ready to harness the power of research to tackle some of the greatest shared challenges of our time.

    Projects like NEOM which seeks to harness the power of AI and net zero technologies to establish the most advanced human habitat on Earth  have the potential to drive forward innovation at a scale and pace almost without precedent in human history.

    I am here because I believe that Britain has a vital role to play in that story.

    With four of the world’s top ten universities, we have one of the most formidable research and innovation bases on the planet.

    And according to the World Intellectual Property Organisation, the UK is one of the most innovative economies.

    Like Saudi Arabia, we too, are unapologetically ambitious in capitalising on our strengths to grow our economy and improve lives for people in Britain and around the world.

    Our Science and Tech Framework sets out our ambition to become a science and technology superpower by 2030, with plans to lead in transformative technologies such as artificial intelligence, quantum, and synthetic biology.

    But, even though we are competitive, we are clear that no country can become a science and tech superpower in isolation.

    Just as the history is of humankind becoming more prosperous, living longer, and building great civilisations through free trade, global innovation is not a zero-sum game.

    And so today, my message is this:

    With our shared strengths and our levels of ambition, the UK and the Kingdom of Saudi Arabia can form a formidable research and innovation partnership for the future.

    That’s why I’m delighted to have today signed a Memorandum of Understanding between our two governments.

    This agreement will encourage our worldQ-leading researchers to form productive partnerships in the years to come.

    And I lay down the challenge to British Universities and institutes: come now and seek opportunities to collaborate in the innovative and fast growing Saudi economy.

    Our two countries’ collaborations in this space are young, but we already have over 50 formalised partnerships.

    Over the last decade, they have delivered everything from joint centres of excellence, to research collaborations and visiting researcher programmes.

    Based on scientific publications, I am proud that Britain is already the Kingdom’s third largest collaborator in research and innovation.

    Actions matter, not just words, and that is why this May, I and a very senior delegation of UK businesses and ministers will return to Saudi Arabia in full force to launch our GREAT Futures Campaign – another chance to turbo-charge our innovation agenda.

    Honoured attendees, it is hard to think of a single challenge we face which won’t require innovation.

    The ‘to do’ list for global research and innovation has never run to so many lines.

    The horrifying consequences of anti-microbial resistance or future zoonotic disease pandemics.

    Protecting societies from extremist ideologies and keeping our children safe online.

    The growing challenges of obesity, cancer and dementia – whilst not neglecting the hunger and disease still faced by too many in the developing world.

    And that’s before we contemplate the need for new low carbon energy systems, creative ways to support mass urbanisation or urgent action to protect nature on our congested and fragile planet.

    Global challenges require a global response.

    And each of us in our national governments have a critical role to play.

    From revolutionary stem cell treatment for reversing sight loss to the first transatlantic flight run on 100% sustainable aviation fuel, the UK shows how publicly-funded research working with private capital and business can help transform the world for the better.

    Perhaps there is no better example than the COVID-19 vaccine, which went on to save an estimated 6 million lives and freed billions more across the globe from lockdown.

    The success of the vaccine only happened as the result of the excellence of Britain’s Universities combined with the innovation of our life sciences companies.

    Saudi Arabia is on a similar path.

    Government-led investment – combined with reforms designed to unleash innovation, like the establishment of the Research, Development and Innovation authority – is already delivering impressive results from public health to energy and the environment.

    NEOM and KAUST are employing digital twinning technology to set up the world’s largest coral reef restoration project.

    And like the UK’s BioBank, the Saudi Human Genome project, is capturing the genetic blueprint of Saudi society to tackle disease with personalised medicine.

    Our commitment is strong and unwavering.

    Last month saw UK annual investment in research and development reach its highest ever level.

    The UK will spend £20 billion across the coming financial year.

    As a country That’s one fifth of all government capital expenditure.

    And it adds up to more than £100 billion between now and 2030.

    Now, we are laser-focused on building an innovation ecosystem where it is simple and rewarding to take that world-leading research, and use it to start and scale a successful business in Britain.

    This is not just happening in world-renowned powerhouses like Oxford, Cambridge and London, but in every corner of the country.

    Take Stevenage – I don’t imagine many of you have heard about this town that sits squarely in the middle of England.

    Yet the Bioscience Catalyst science park in Stevenage is the single largest cluster of cell and gene therapy companies in Europe.

    This is no coincidence. Cutting-edge companies from around the world have chosen the UK to start-up and scale-up precisely because of those public-private partnerships I have been talking about.

    From small satellite manufacturing in Glasgow to semiconductors in South Wales, our thriving R&D ecosystem means that there are stories like this up and down the UK.

    In fact, my team have developed a new Cluster Mapping Tool to make it easier for investors, entrepreneurs and government to identify these hot spots of innovation.

    Of course, success will never be exclusively about raw investment.

    We in government also have a responsibility to ensure that regulators can provide innovative businesses with the clarity and certainty that they need to get their products and services to market  quickly.

    I have run businesses myself, and I know how frustrating it can be to have a brilliant idea you are unable to execute, because clunky rules, risk averse regulators or out-of-date laws don’t allow for it.

    Good regulation should encourage innovation, not stifle it, even as we refuse to compromise on safety.

    Even in fast moving technologies, the right balance of regulation can help provide certainty to invest.

    A good example is the UK’s approach to the safety of Frontier AI and last years summit at Bletchley Park.

    It is why we have made delivering an ambitious regulatory reform agenda a top priority in the UK, and a key pillar in our science and tech framework.

    To conclude my remarks:

    We all in this room have an incredible opportunity.

    It’s an exciting time in innovation and an exciting moment to be an innovator.

    That’s true individually but it is also true at the whole economy scale where countries like the Kingdom of Saudi Arabia and the United Kingdom seek to be innovator economies; to grow and to improve the lives of their citizens and make a wider contribution.

    But at a time of shared global challenges, none of us can do it alone.

    We in government must work together – such as in the agreement the UK has today signed with Saudi Arabia – and by doing so we can support bigger, better, bolder science than we could ever do alone – and take on and solve the challenges that will define the future.

    Thank you.

  • Andrew Griffith – 2023 Statement on Government Shares in the Natwest Group

    Andrew Griffith – 2023 Statement on Government Shares in the Natwest Group

    The statement made by Andrew Griffith, the Economic Secretary to the Treasury, in the House of Commons on 17 April 2023.

    Government’s shares in NatWest Group plc

    I can inform the House that the Government have announced an extension to their existing trading plan to sell part of the Government’s shareholding in NatWest Group—NWG, formerly Royal Bank of Scotland, RBS. The current trading plan was due to end in August 2023. Following its strong progress to date in reducing the Government’s shareholding in NWG, the trading plan has been extended for a further two years, allowing sales to continue under the plan until August 2025. This announcement demonstrates continued progress towards the Government’s intention to return its NWG shareholding to private ownership by 2025-26.

    Policy rationale

    It is Government policy that, where a Government asset no longer serves a public policy purpose, the Government may choose to sell that asset, subject to being able to achieve value for money. This frees up public resource which can be deployed to achieve other public policy objectives.

    The Government are committed to returning NWG to full private ownership, given that the original policy objective for the intervention in NWG—to preserve financial and economic stability at a time of crisis—has long been achieved. At spring Budget 2023, the Chancellor reiterated the Government’s intention to fully dispose of their NWG shareholding by 2025-26.

    Trading plan detail

    A trading plan involves selling shares in the market through an appointed broker at market value over the duration of the plan. Trading plans are an established method of returning Government-owned shares to private ownership, while protecting value for the taxpayer. This method was used in the sale of the Government’s stake in Lloyds Banking Group.

    The trading plan for the Government’s NWG shareholding will be extended for two years, terminating no later than 11 August 2025. Shares are only sold at a price that represents fair value and delivers value for money for the taxpayer. The final number of shares sold will depend on, among other factors, the share price and market conditions throughout the duration of the trading plan. Since the NWG trading plan was established in August 2021 it has made significant progress in reducing the Government’s shareholding, with over £3.7 billion in proceeds raised from sales that have delivered value for money for the taxpayer.

    UKGI and HMT will keep other disposal options under active consideration. The decision to extend the trading plan does not preclude the Government from using other disposal options to execute further transactions that achieve value for money for taxpayers.

  • Andrew Griffith – 2023 Speech to the Innovate Finance Global Summit

    Andrew Griffith – 2023 Speech to the Innovate Finance Global Summit

    The speech made by Andrew Griffith, the Economic Secretary to the Treasury, on 17 April 2023.

    Good morning, everyone.

    Let me start by thanking Innovate Finance for inviting me and for organising such a fantastic conference.

    As ever, you really are kicking off UK Fintech Week in style.

    And it’s wonderful to be in this beautiful space – Guildhall – a venue constructed in the fifteenth century. It is a reminder of the proud and storied history of the financial services industry in this country.

    As Economic Secretary, my objective is to ensure that the UK is the most innovative, most international and most business-friendly economy anywhere in the world.

    I want the UK to prioritise growth, risk taking and wealth creation and to celebrate it for the moral good that it is.

    And as we chart our way forward with the ability of being able to make our own rules for the first time in decades, it has never been more important that financial services are at the heart of those efforts.

    That is certainly the objective that the Chancellor, the Prime Minister and I all share for the sector.

    Innovation – all of you in the dynamic fintech community – has a huge role to play.

    Bank accounts, payment services, the ability to borrow, save into a pension or other investments, buying insurance, or the provision of tools to understand finances better or to shop around offer enormous benefits to their users.

    They create ladders of opportunity, the ability to transfer wealth over a lifetime, the chance to provide for our old age or they can shield us from some of the adverse events that life can throw at us.

    Whilst I am proud to have many large and longstanding firms in the sector, it is rare that legacy firms have the ability to innovate at the pace required to make the most of changing technologies and keep us internationally competitive.

    Our Fin Tech community is vital for the economy in improving productivity, creating choice, and reaching into new under-served segments of the market.

    Which is why I am glad that as a location for Fin Techs to base themselves, on many fronts the UK is leading the way.

    Indeed, the sector continues to go from strength to strength.

    Data from Fintech Labs shows that almost half of Europe’s fintech unicorns are based here in the UK.

    And Innovate Finance found that last year, the sector attracted more investment than the next thirteen European countries combined.

    Our own commitment to supporting UK fintech is reflected in the actions we took, working with the Bank of England, to facilitate the private sector sale of the UK arm of Silicon Valley Bank to HSBC last month.

    I know many of you in this room were directly affected by the collapse of SVB and I am glad that we were able to act decisively to secure an outcome which protected your capital and ensured continuity of banking services.

    Throughout that intense period, I and other Ministers were accessible and constantly communicating with the sector.

    Government isn’t perfect but I hope that when the chips were down we demonstrated the benefits of being a sovereign nation with the agility to make its own decisions fast.

    But that is just the start.

    Our belief in this sector is also evident in the proactive steps we are taking to ensure that you continue to thrive in the years ahead.

    Importantly, the Government will reflect on the submissions to the Payment Services Call for Evidence and introduce an agile regulatory framework for payments and e-money that promotes growth and supports an internationally competitive payments sector.

    We’re also fostering innovation by making the UK a safe jurisdiction for cryptoasset activity.

    We set out plans in our wide-ranging consultation published in February, and we want to pro-actively support the use of distributed leger technology and tokenisation where it makes sense.

    At the same time, I was pleased to launch the Treasury’s joint consultation with the Bank of England, on how to move forwards with a sovereign or central bank digital pound.

    Private wholesale digital currencies are likely to come to market first and we are already creating the legislation to enable those which are fiat backed and used for settlement in the current Financial Services Bill going through Parliament right now.

    And we have the upcoming Financial Market Infrastructure Sandbox, which will help industry adopt and scale digital solutions that could radically change the way markets operate. That will be up and running this year.

    CFIT

    One of the most important steps we have taken to support financial innovation over the past two years has been implementing Ron Kalifa’s fintech review.

    Since being appointed, I have upped the pace of delivery and a few weeks ago we launched the new Centre for Finance, Innovation, and Technology – CFIT – in Leeds, a city where fintech adds £710 million to the local economy.

    CFIT is backed by £5 million of Treasury seed funding, along with an additional £500,000 from our partners at the City of London Corporation.

    It’s central task is to bring together industry players – entrepreneurs, policymakers, investors, and academics – into coalitions to address some of the trickiest challenges facing the sector.

    I am delighted to announce today that CFIT’s first coalition will look at Open Finance and how unlocking financial data can benefit SMEs and consumers.

    Everyone in this room understands how data can radically empower individuals and businesses alike.

    McKinsey estimate that opening up financial data could boost UK GDP by a useful 1.5% by 2030 so CFIT has my full support as they go after that opportunity.

    Open Banking

    Open finance would obviously be the next development beyond the existing Open Banking ecosystem, which is one of the most dynamic and exciting anywhere in the world.

    There are over 7 million regular active users of Open Banking in the UK and over a billion successful API calls every month. It’s spawned thousands of new businesses and products.

    Those who are close to it, know that this is a key moment for the Open Banking regulatory regime.

    We’ve done a lot of work over the last year through the Joint Regulatory Oversight Committee to set out the next steps to ensure Open Banking continues to go from strength to strength.

    This morning, the Committee set out its recommendations, with a vision of a data sharing market which is competitive and scalable for the long term.

    To achieve this, we will move Open Banking on to a sustainable regulatory framework, which the Government intends to develop through the Data Protection and Digital Identity Bill which has its second reading in Parliament today.

    Open Banking will also transition to a new entity, with a broad-based, equitable funding model and high standards of corporate governance. Today we set out how we plan to get this transition started this year.

    But we can’t spend all our time and energy on governance models.

    So we also set out an ambitious roadmap of actions for the next few years, again starting immediately. By Q3 this year, there will be tangible progress across the board, on key themes such as mitigating the risks of financial crime and promoting new services, including variable recurring payments.

    Let me be clear as I know some folk have been worried: this will be the year of delivery on the next generation of Open Banking.

    Our plan is ambitious but achievable, and I am committed to maintaining our country’s leadership in this field. We won’t rest on our laurels, and I want to encourage all of you to work with me to build on the success that Open Banking has been so far.

    Artificial Intelligence

    If data is one limb that has the potential to transform the financial services sector, the application of artificial intelligence is the other.

    Although there are already many deployments and uses in the financial sector, my belief is that we are barely getting started.

    AI can help firms to identify and prevent fraudulent transactions, detecting suspicious patterns in real time.

    By analysing data on market trends, customer behaviour, and other factors, AI algorithms can identify potential risks and provide recommendations for risk mitigation strategies.

    It can help investment managers to make more informed decisions, driving better returns for savers.

    And AI can power new customer service features, such as chatbots, which can deliver personalised support quickly and efficiently.

    This technology has immense potential to transform the financial services sector.

    And that is why the Government recently published its White Paper on AI which details our plans to make the UK the most trusted and pro-innovation system for AI governance in the world.

    This builds on our recent £900 million investment to build an exascale supercomputer and to establish a new AI Research Resource. These will provide significant compute capacity that many in this room may wish to take advantage of.

    Launch of the UK Fintech Census

    But even as we support the fintech community here in the UK, it is vital that we help our firms to expand internationally.

    That’s why my final announcement today is the launch of the UK Fintech Census, in collaboration with the City of London Corporation and Innovate Finance.

    It is designed to tailor our support for you as we make the most of the UK’s access to international markets.

    When you think about it, no other country on earth combines a seat on the Permanent Council of the UN with membership of NATO and AUKUS, a trade deal with the EU, accession to the Comprehensive and Progressive Trans-Pacific Partnership and being a founder member of the Commonwealth.

    The Census aims to help you make the most of these opportunities by seeking your feedback on three simple points:

    What international markets do you want to break into?

    What are the main challenges that you face?; and

    What further support and services would you like to see?

    The Census opens today and will run for five weeks, aiming to reach all 2,500 fintechs in the UK.

    And, in order to make it a useful and actionable data set, we will repeat the Census annually.

    Conclusion

    In conclusion, ladies and gentlemen I hope you are as excited about the opportunities as I am for you.

    UK fintech is in a great place today.

    But it’s our job, as a Government, to ensure that that success continues and we reach new heights… a mission to which, I assure you, we are utterly committed.

    I am a do-er by nature: I have worked in disruptive businesses for most of my life and I want to deliver concrete actions that help this sector to thrive.

    You’re already effective at telling us what you think – and I challenge myself and the team on a daily basis what more we can do to help.

    So please let’s keep working well together so that at next year’s Global Summit – and many more to follow – we’ll all be able to look back on many more fantastic years for UK fintech.

    Thank you very much.

  • Andrew Griffith – 2023 Speech to the Lord Mayor’s Financial Literacy and Inclusion Summit

    Andrew Griffith – 2023 Speech to the Lord Mayor’s Financial Literacy and Inclusion Summit

    The speech made by Andrew Griffith, the Economic Secretary to the Treasury, at the Mansion House in London on 12 April 2023.

    Good afternoon and thank you Lee for that introduction.

    It’s good to be here today to discuss this vitally important topic – and thank you Lord Mayor for everything you have done in a short number of months.

    On this and on other aspects of our financial services you have been banging the drum for the City of London so loudly that I’m sure it has left our competitor countries ears ringing.

    Not that, of course, we want that.

    But we do live in a globally competitive world, and, frankly, I want us to come out on top.

    Like you, I want us to be the most innovative, most international and most business-friendly economy anywhere in the world.

    I want us to prioritise growth, risk taking and wealth creation and to celebrate it for the moral good that it is.

    And as we chart our way forward in these uncertain times but with the agility of being able to make our own rules for the first time in decades, it has never been more important that financial services are at the heart of those efforts.

    That is certainly the objective that I, the Chancellor and the Prime Minister all share for the sector.

    Your theme today is Financial Literacy and Inclusion. How we ensure that financial services deliver for everyone.

    Bank accounts, the ability to borrow, a pension, savings, insurance, or the use of financial technology offer enormous benefits to their users.

    They create ladders of opportunity, the ability to transfer wealth over a lifetime, the chance to provide for our longevity or infirmity or they can shield us from some of the adverse events that life can throw at us.

    So, it is important that we do everything possible to ensure no one is excluded – whether through lack of understanding or lack of access – from financial products which could help them succeed in life.

    We can only do this by working together. You know that. It is why we are all here today.

    But let me address myself particularly to the role of government and what specifically we can do to support financial inclusion.

    I believe there are four things.

    First, we can intervene directly to help those who do end up excluded in some way.

    Second, when legislating, we can design regulations that are proportionate. Regulations that are mindful of the very real potential unintended consequences for financial inclusion.

    Third, we can support financial literacy.

    And fourth, we can create the environment in which innovators can bring forward new products that overcome financial exclusion.

    Let me take each in turn.

    On the first, I would humbly say that, although there is always more to do, this government is doing more than any of its predecessors.

    We are continuing to maintain record levels of funding towards free-to-client debt advice provision in England via the Money and Pensions Advice Service bringing their budget this year to £93 million.

    We have legislated so that every single person in this country must be able to open a fee-free bank account if they wish to.

    There are more than 7 million of these accounts open today and something we should all be proud of is that more than 70,000 Ukrainian refugees in the UK have been helped to open one of these accounts over the last year.

    Meanwhile, the Age Agreement, signed by the Treasury, the ABI and BIBA, helps older consumers who struggle to access motor and travel insurance by signposting them to appropriate insurers.

    Originally signed in 2012, I’m pleased to say it will be renewed this year to continue supporting older consumers.

    One of the largest interventions we have made is to support affordable credit.

    We’ve given £100 million of dormant assets funding to Fair4All Finance to support their work on financial inclusion, on top of a further £45 million of dormant assets funding to the organisation to address the cost of living.

    We’ve even provided Fair4All Finance with £3.8m of funding to pilot an entirely No-interest Loans Scheme.

    And this isn’t the only work being delivered through dormant assets. DCMS recently consulted on another tranche of dormant assets funding, worth an estimated £738 million over time.

    In its response, the government confirmed that youth, financial inclusion and social investment would continue as causes under the scheme.

    As the Minister responsible for financial capability, I look forward to working with DCMS in exploring how building financial education and capability can be supported in the future as an additional aspect within the financial inclusion cause.

    Finally, at the recent Budget, we extended the Help to Save scheme by another 18 months to 2025.

    We will shortly be consulting on how we can simplify to make it even better and reach more people.

    So as with Covid or energy bills, we won’t hesitate to help the most vulnerable – but most people don’t want a handout or a special product from the government.

    They want to be able to access to same products with the same features and benefits as everyone else.

    And that brings me to my second point about government’s role. Which is that as legislators, we must be careful when making regulations that they are proportionate.

    It is too easy to have well intentioned regulations which potentially increase financial exclusion.

    Examples could be client onboarding requirements which push the cost of advice out of reach for many who would benefit or mandatory affordability tests that actually reduce access to credit for some of those needing it the most.

    It’s something that my officials and I are very conscious of.

    It is why it is so important that you do respond to our consultations and it why every piece of legislation has a Regulatory Impact Assessment which is independently scrutinised.

    Perhaps a good example of where I hope we are getting it right is on Credit Unions.

    Ever since the 18th century, mutual societies have helped meet the needs of local communities.

    Given their distinct business models, credit unions face a less onerous set of regulations than non-mutual retail banks.

    For example, credit unions have exemptions from the requirements of the Consumer Credit Act 1974, which enables them to offer credit at affordable rates to their members who might otherwise be excluded from credit.

    To help further the growth and sustainability of credit unions in Great Britain, the government is bringing forward amendments to the Credit Unions Act 1979.

    For example, credit unions will be able to offer products such as car finance and distribute insurance to their members for the first time.

    It’s a good example of proportionate regulation – or deregulation – being used to improve inclusion.

    On financial literacy, I know that you heard earlier from Sam at National Numeracy who deliver programmes to support the millions of people who have low confidence with numbers.

    I’m looking forward to supporting their National Numeracy Day on the 17 May and I am delighted that they are part of the Lord Mayor’s Appeal this year.

    There couldn’t be a more important issue for all of us.

    It is terribly concerning to hear the statistic that around 8 million adults in England only have the numeracy skills of a primary school child.

    We know lack of numeracy is a barrier to using financial products and it is one of the main reasons why people get into problem debt.

    The Prime Minister has been clear that numeracy is a personal mission for him too. At the start of this year, he said:

    “One of the biggest changes in mindset we need in education today is to reimagine our approach to numeracy.

    “In a world where data is everywhere and statistics underpin every job, our children’s jobs will require more analytical skills than ever before.

    “Letting our children out into the world without those skills, is letting our children down.”

    He laid out the path to introducing maths education up until the age of 18 by the end of the next Parliament.

    Many of us are worried about the growth of a compensation culture impacting the sector. It’s a growing cost and has the potential to hold us back competitively.

    Tackling some of the practices of claims management firms is one part of the solution.

    But improving the level of financial literacy and an understanding of risk by the consumer can only help us return to greater role for ‘caveat emptor’.

    There’s one final role for government. And that’s creating an environment which fosters innovation. Light touch regulation, a culture of supporting risk takers or simply regulatory sandboxes that are open for business.

    The whole UK fintech sector is a great success story, with around 2,500 firms supporting tens of thousands of skilled jobs across the country.

    In 2022, the sector attracted $12.5 billion of investment. This means that fintechs in the UK attracted more funding than those in any other country bar the US.

    Much of what they do delivers for the financially excluded. For example, through new payments options or new tools and apps helping individuals manage their budgets or better understand their finances.

    Artificial Intelligence offers huge possibilities for inclusion.

    Alternative credit scoring to develop more accurate credit profiles for currently underserved groups.

    Micro insurance to deliver low cost coverage;

    And better fraud prevention as sadly fraud often hits the least resilient the hardest.

    Let me finish with a specific example.

    Access to cash is a topical subject bringing together many of the themes I’ve spoken about.

    Nobody in this room needs reminding that as a society, we are moving increasingly from cash to electronic payments – with non-cash transactions now accounting for around 85% of UK payments.

    Nor is it just the young: 8 out of 10 people of retirement age are using contactless card technology at least once a month.

    The trend has benefits in convenience, security and for the environment.

    However, we will not leave behind rural communities, the elderly or those who use cash as a way to manage their personal finances.

    That is why, for the first time since the ancient Celts began minting coins in the British Isles, this year will see communities benefit from a right of access to cash, enshrined in law via the Financial Services and Markets Bill currently going through Parliament.

    The right will cover not just withdrawals but also the ability to make cash deposits, something that is particularly important to small businesses.

    Their continued ability to accept cash depends upon knowing they can deposit it safely. Putting this in statute is a huge step forward.

    We have already made legislative changes to support cashback without a purchase. That turns every single corner and high street shop into a potential source of free cash withdrawal.

    So, we won’t hesitate to legislate where necessary, but we delude ourselves if we believe that is the whole answer.

    Like the trend away from the horse pulled carriage or domestic coal fires, we cannot hold back change for all time.

    As I said before, innovation has a huge role to play.

    So, I pay tribute to UK Finance, their member banks, LINK and the Cash Access group who have come up with a whole series of innovations to help the vulnerable. Community cash machines, shared banking hubs and more.

    ‘Tap and go’ technology for charities can eliminate the jeopardy from losing the old collection tins and even yield higher donations.

    With the right controls, payment cards could help those with carers or in care. We have the popular ‘Go Henry’ cards for parents – why not ‘Go Harold’ or ‘Go Hilda’ for the elderly?

    Earlier this year, together with the City of London Corporation, we launched a new government-seed funded national hub – the Centre for Finance, Innovation and Technology.

    They are operationally independent, but I did put to Charlotte and Ez when we last met that financial inclusion was a big agenda that would be worth their consideration.

    Let me conclude Ladies and Gentlemen by restating my commitment to work with you all on this agenda.

    Thank you, Lord Mayor and the City of London Corporation for bringing us all together today.

    The UK is immensely fortunate to have the great financial services sector that it does.

    But part of growing sustainably and reaching our full potential is making sure that we include everyone and that is why the work of everyone here today is so important.

    Thank you.

  • Andrew Griffith – 2023 Speech at the Funds Congress

    Andrew Griffith – 2023 Speech at the Funds Congress

    The speech made by Andrew Griffith, the Economic Secretary to the Treasury, in London on 30 March 2023.

    Introduction

    Thank you, John. As a former public company CFO, it’s certainly a relief to know that you’re introducing rather than interrogating me today.

    And thank you to everyone here at the Funds Congress for having me this morning.

    I was, of course, delighted to be asked to speak at London’s largest asset management conference.

    And even better that I can be with you today in person, given this is the first time Funds Congress has met physically since 2020.

    What a lot has changed since then. But what hasn’t changed is the vital importance the asset management industry holds for the UK and the global economy.

    An engine for UK growth and long-term economic prosperity. A world leader in portfolio management and sustainable finance. The second largest asset management centre in the world with a market share higher than France, Germany and Switzerland combined. And an innovative spirit coupled with a diversity of expertise unrivalled anywhere to boot.

    Growth: The role of the asset management

    Before I come on to what we can achieve together, let us consider where we are today.

    A major source of high value jobs in the UK – employing 42,000 people directly and supporting many tens of thousands in adjacent services.

    A unique lynchpin of the UK financial services ecosystem, existing at the heart of many concentric circles of value in the industry across the UK.

    But more importantly, the performance that you deliver to help lift up the standard of living of millions, tens of millions are benefitting today as they save for a pension through auto-enrolment.

    You generate close to 1% of the UK’s GDP.

    And 3.6% of total UK service exports.

    But that data doesn’t do justice to your impact today, let alone what we could achieve.

    And while we have the legacy to lead in this space, we can’t be complacent.

    Productive Finance

    As the Chancellor outlined in his Bloomberg Growth speech, we want the UK to be among the most prosperous countries in Europe.

    We want to spur economic growth.

    And we have a plan to get there.

    I want to pay particular attention to the role of enterprise.

    Within this, I want to highlight reward for risk, access to capital and smarter regulation.

    Because enterprises need funding, just as all our long-term priorities do.

    It’s why we’ve been working hard to better facilitate investment in long-term assets that will be a crucial ingredient in the UK’s economic success over the years ahead.

    Because we all know that there are global and domestic priorities we need to tackle. It’s why we’re a leader in green finance, it’s why we are working to level up, it’s why we want to be the next Silicon Valley – but these priorities need to be funded.

    Currently, the UK has the fourth largest pensions market in the world.

    If we can unlock just a fraction of Defined Contribution pensions schemes’ capital for investment into productive finance assets, ordinary pension savers could retire with more security and money to enjoy.

    And simultaneously, we would increase the supply of private finance for innovative companies, and productive assets.

    When talking about productive UK assets I mean infrastructure, I mean growth, I mean venture capital.

    It’s why the launch of the Long-Term Asset Fund – or LTAF – is such an important step in unleashing long-term investment.

    At the beginning of December, I spoke about how, together, we have created the LTAF to help unlock access to long-term illiquid assets.

    Our conclusion is that it will lead to a significant boost to the productive capacity of the UK economy – including much-needed infrastructure and decarbonisation products.

    Because we know that client demand for illiquid investments is increasing. So it’s welcome that additional work such as the Productive Finance Working Group’s guides to illiquid investments is helping to set direction for DC pension schemes.

    And I’m excited to hear of firms that are formally submitting their LTAF applications to the FCA.

    It may sound like a niche, technical area to get animated over. But it’s far from it. It has the power to be transformative for our sector, the economy and society as a whole.

    Funds Regime

    The work on LTAFs is best understood alongside the wider work to review the UK’s funds regime.

    Here our ambition is to further build on the UK’s world-leading position in asset management by making the UK a much more attractive place for funds to domicile.

    And by ensuring the investors can access a suitably wide range of fund vehicles, so they can pursue the exciting investment strategies of tomorrow from the UK.

    With your support and expertise we will continue striving to make this a reality. We will make the taxation of funds more efficient. We will expand the range of investment products available in the UK. And we will facilitate the kind of innovation which helps investors and the wider economy.

    Global Opportunities

    My responsibility is to ensure the UK financial services industry is the very best that it can be.

    On making sure we have agile and effective regulation.

    The Edinburgh Reforms take forward the government’s ambition for the UK to be the world’s most innovative, open and competitive global financial centre.

    To drive growth and competitiveness in this crucial sector, while retaining our commitment to high international standards.

    The Chancellor has committed to move rapidly to review retained EU law over the next year to identify reforms which have the greatest potential to unlock growth in key areas, including in financial services.

    The Edinburgh Reforms themselves, of course, do not directly impact many of you here today. But what they show is our direction of travel: to use our new freedoms to tailor regulation to our industries and untether parts of our economy that have been held back.

    To what end? To becoming the most innovative, productive, well-oiled financial services sector in the world that delivers for communities across all four nations of the UK.

    I want to harness your strengths, unlocking institutional investment so that we can channel money to where it can do the most good: infrastructure, technology and innovation, the journey to net zero.

    I want our country to be the best country in the world for businesses to invest, grow and flourish.

    And I need your help in directing ever-more investment to these cutting edge-firms and long-term priorities.

    On the subject of long-term priorities, could anything be more important than our country’s security?

    It is my view that our security and freedom might just rely on our willingness to invest in defence over the long-term. So, I ask, as a sector, are we undervaluing defence and if so, what can each of us do about it?

    FSM Bill

    And the truth is we need to think long-term. We live in a globally competitive landscape. Our competitors are not taking a break.

    Our Financial Services and Markets Bill, therefore, has competitiveness baked into it, aiming to enhance the UK’s position as a global leader in financial services.

    The Bill introduces secondary statutory objectives for the PRA and the FCA to provide for a greater focus on growth and international competitiveness.

    Technology

    If we are to realise that ambition, we need to also ensure that UK financial services are at the forefront of technological advancements. To unlock the untapped potential new technology can bring to every town and city, and to grow the economy.

    It’s already enabling us to embrace green finance – on which we want to lead the world – and exploit the great opportunities provided by AI, Quantum Computing.

    And the asset management industry has the unique capability to harness the opportunities of innovative technologies, and one development I’d like to highlight is on digital assets – those made possible by the rise in blockchain technology.

    We are establishing a framework for regulating cryptoassets and stablecoins.

    This includes ensuring that the Treasury has the powers to regulate cryptoassets within the existing financial services framework which could cover those relating to the trading and investment of cryptoassets.

    Just last week, we published a consultation setting out comprehensive proposals for regulating the sector.

    At the end of last year, we made regulations to expand the Investment Manager Exemption tax rules to include transactions in cryptoassets, to remove disincentives to UK fund managers investing on behalf of overseas investors from including cryptoassets in their portfolios.

    This will provide greater tax certainty for UK fund managers and foreign investors and put the UK at the forefront of the developing global cryptoasset fund management sector.

    Sustainable Investments

    Finally, I cannot speak about the global context without acknowledging ESG and the importance of sustainable investment.

    I want the UK to be the best place in the world for sustainable finance and we have taken world-leading action to green the financial system.

    London was recently ranked as the world’s leading hub for sustainable finance for the third consecutive time.

    And I’m very proud that so many asset managers are signatories to the Financial Reporting Council’s Stewardship Code and members of the Net Zero Asset Managers Initiative – reflecting the importance the Government places on responsible and productive stewardship of capital.

    Conclusion

    I’ll end by repeating my thanks to you all for having me at the Funds Congress.

    It’s an exciting time for asset management and we’re depending on this trusted industry to invest in the future of the UK.

    I know we will work closely as we continue to promote growth and enable a competitive, thriving financial services sector. Thank you.

     

  • Andrew Griffith – 2023 Speech at a FIX Trading Conference

    Andrew Griffith – 2023 Speech at a FIX Trading Conference

    The speech made by Andrew Griffith, the Economic Secretary to the Treasury, on 9 March 2023.

    Introduction

    Good morning everyone and thank you for the invitation to speak to you today.

    I am also glad to see that Professor Hübner will be speaking afterwards, in a reflection of our shared commitment to the highest standards of global market regulation.

    And we couldn’t be in a better place to discuss these issues.

    No one is sure how the market got its name, but Old Billingsgate has been synonymous with fish since the 16th Century, and it was the century after that Parliament passed an act to make it a “free and open market for all sorts of fish whatsoever”.

    There was one exception: the sale of eels from Dutch fisherman.

    As London boomed, the city’s population began eating so many eels that the domestic stock couldn’t keep up.

    And over time, the Dutch had shown they were the only people who knew how to transport live eels in bulk. British ships couldn’t manage it. And so, the Dutch established a de facto monopoly on eel sales in London.

    There’s two pertinent points here.

    One, this venue, having dealt with slippery animals before is well suited to accommodating politicians.

    And two: some countries are better in certain sectors. The Dutch had the eel trade, and we have financial services.

    But jokes aside (because, of course, the Dutch do share with us a long-standing tradition in financial services) this sector is incredibly valuable to our country.

    This is an industry that contributes 12% of the UK’s total economic output and employs over 2.2 million people.

    It’s the UK’s largest net exporting industry and its largest taxpayer.

    So let me start by saying “thank you”. Thank you for taking risk, employing and developing your people and the valued contribution you make. I never forget that you have a choice where to locate or to raise or invest capital.

    Because it’s a competitive world out there and the UK must and will compete for every pound, dollar or euro of business.

    And it’s my job to make sure we put in place the support environment in which you can do so.

    Led by the Prime Minister, supported in lockstep by the Chancellor and me, this government firmly believes that financial services and private capital are at the heart of the solutions to the national and international challenges we face, from aging populations to protecting nature, from supporting left behind communities to conquering diseases.

    So, I want to assure you of the importance that the government places on this sector. Not just through my words today, but through our actions.

    Capital Markets

    In particular, one of the UK economy’s great strengths is its capital markets.

    The UK is blessed with capital markets that are among the deepest, most liquid and most competitive anywhere in the world.

    We are Europe’s leading hub for investment, and the second largest globally. We have the most international equities market and two of the world’s largest clearing houses.

    Our capital markets are relied upon by some of the world’s largest businesses – and, by the way, will be crucial in funding the global transition to clean, low carbon energy.

    It explains why, in 2021 alone, more than £17bn of new capital was raised for firms in the UK on the London Stock Exchange alone, a 15-year high, with over 120 deals completed.

    How do we account for this achievement?

    It’s through our fundamental strengths such as the rule of law, English language, a fortuitous time zone, and the fact that London is one of the world’s most diverse and liveable cities.

    It’s through the expertise of firms that base themselves here, whether that be in finance itself or all the services that support it, from legal to accounting.

    But this strength is also fostered through innovation, competition and high regulatory standards.

    The government of which I am a part has a clear vision: making UK regulation more proportionate and simpler… keeping it relevant for a modern world and enabling innovation.

    This government is focused on delivering this vision for the financial services sector. And when I say focussed on delivering, that’s exactly what I mean. My mantra is delivery, delivery, delivery.

    Capital Markets reforms

    So, building on the strengths of capital markets, we are pressing ahead with an ambitious programme of capital markets reforms.

    We are implementing the practitioner led reforms suggested by Lord Hill and Mark Austin – who have provided concrete steps to help us be more competitive.

    This includes completely overhauling the UK’s Prospectus Regime to widen participation in capital markets, improve the efficiency of fundraising for companies and improve the quality of information investors receive.

    We will do this by repealing the existing Prospectus Regulation and replacing it with a new regime tailored to the UK. Our new regime will be simpler, more agile, and more effective, and we have already published draft legislation to do that.

    We aren’t stopping there – we are also keen to accelerate the settlement of financial trades, and as part of the Edinburgh Reforms we announced the creation of an industry taskforce to see how we can do so, such as by moving to a ‘T+1’ standard.

    Faster settlement could reduce counterparty risk, increase efficiency and promote greater automation of back office processes.

    It will ensure that the UK continues to be a world leader in this area.

    The taskforce is being chaired by Charlie Geffen, who is bringing together the industry to recommend an approach that works for the UK.

    Separately, we have also set up the Digitisation Taskforce, which will drive forward the digitisation of all remaining paper share certificates in the UK.

    It will also set out how we can improve communications between different parts of the market, and how investors will be able to have far better interactions with the companies they invest in.

    This work is being led by Sir Douglas Flint and I am looking forward to receiving his interim report this spring.

    I know that some of those in the room are already involved in these initiatives. Thank you for your insight and I look forward to seeing your recommendations.

    We are also reforming our rulebook for wholesale markets through the Financial Services and Markets Bill.

    Those changes will boost liquidity by giving greater choice to firms on where and how to trade.

    To give you one example which I know is of particular interest to many of you.

    The Bill will allow the Treasury and the FCA to put a framework in place to facilitate the development of a consolidated tape by 2024.

    Transparent and timely data plays a key role in helping markets to function efficiently and the tape, by acting as one single source, will improve liquidity and lead to lower trading costs.

    This is particularly true for the fixed income markets, given how fragmentated the data currently is.

    And there’s more…

    In December, we announced that we are taking a closer look at retail disclosure and short selling.

    On retail disclosure, the government is committed to repealing the current PRIIPs regulation as a matter of priority and replacing it with an alternative framework that works for the UK.

    As for short selling, I see it as an important tool in financial markets. The UK should therefore have regulations that support it and do not place excessive burdens on market participants.

    Both of these areas are ripe for reform with the common theme of reducing red tape and making markets work better.

    Let me also share with you some news that I am announcing this morning.

    To ensure that the UK continues to be one of the best places for companies to list and trade, we need to ensure that investors have access to the information they need to make investment decisions.

    Companies need to feel confident that their investors will understand them, their goals and ambitions, and embark with them on their growth journey.

    This is why the volume and quality of research matters. That translates into more liquid markets and can help obtain higher valuations.

    I am therefore pleased to announce that another City expert … Hogan Lovells Partner and financial services regulatory expert Rachel Kent, will lead the Investment Research Review.

    The Review will gather evidence on the impact that the UK’s investment research offering has on both public and private markets, recognising the role that research plays throughout a company’s life cycle. While a lot broader in scope, Rachel will also look specifically at the impact of the MiFID unbundling rules when considering solutions.

    With her experience and knowledge of the sector, as well as the regulatory framework, I have every confidence that Rachel will do a fantastic job at convening the sector, looking at the evidence and finding solutions to improve the UK market for investment research, before delivering her recommendations in June.

    FSM Bill

    As previously mentioned, a key part of delivering our reform agenda is the Financial Services and Markets Bill, currently progressing through its final weeks in Parliament.

    Without getting into the weeds of the Bill, it will enable us to progress our ambitious plan to replace retained EU law with an approach that is tailored to the needs of UK markets.

    Central to this is the new duty on the FCA and PRA to facilitate the international competitiveness of the UK and its growth in the medium-to-long term.

    We will do this in a balanced, ordered way – and will only target policy change where there are clear benefits to the sector and the wider economy.

    Of course, as the regulators take on more responsibility for setting rules once we repeal retained EU law, it is right that their objectives reflect the critical role of the financial services sector in supporting the wider economy.

    Increased responsibility for the regulators must be balanced with clear accountability, appropriate democratic input, and transparent oversight.

    To that end, the Bill includes measures to increase the accountability of the regulators to Parliament, strengthen their relationship to the Treasury, make them publish more of their performance metrics and enhance their engagement with stakeholders – including many of you here today.

    A sector at the forefront of technology and innovation

    And in changing – or innovating – our regulation, we are simply in keeping with the innovative traditions of this sector.

    We are one of the world’s top two financial hubs and the world’s largest net exporter of financial services.

    Your capability to deploy capital behind innovation combined with our research strengths, makes the Prime Minister – the entire Government’s – aspiration to be a technology superpower by 2030 ambitious but highly achievable.

    The financial services sector is driving this agenda, and leading the change brought by technology and innovation.

    And the government is there to help you drive that change…

    We are creating a Financial Market Infrastructure Sandbox, which will help industry adopt and scale digital solutions that could radically change the way markets operate, and lead to markets that are more efficient, transparent and resilient.

    The first FMI Sandbox will be up and running this year. And as we learn from the outcomes of this flagship initiative, more can be established.

    We’re looking forward to watching firms grow in the sandbox, moving on from buckets and spades to world beating technological tools.

    We have recently published a wide-ranging consultation paper, setting out our proposals to establish a comprehensive framework for regulating cryptoasset activities in the UK, providing clarity for consumers and firms.

    By capitalising on the potential benefits offered by crypto – and the underlying technology – we are strengthening our position as a world-leader in fintech and unlocking further growth opportunities and innovation.

    And last month, the Treasury and the Bank of England issued a joint consultation on a potential digital pound in the UK.

    This is a major milestone in our work in this area, marking the end of the research and exploration phase and the beginning of the design phase of work.

    We are also taking forward other initiatives in the innovation space, such as the new Centre for Finance, Innovation and Technology – or CFIT -launched last week and backed by £5 million of Treasury seed funding. CFIT will champion the UK’s world-leading fintech sector, helping firms to create high-skilled jobs across the country and to achieve truly global scale.

    Concluding remarks

    Ladies and gentlemen, this is an exciting time.

    We face challenges, yes.

    But in confronting them we also find opportunity.

    Opportunity to do things differently…

    …to seize the moment…

    …to make our country the world’s most competitive location for financial services.

    It’s an ambitious, yet achievable agenda.

    It will require our joint enterprise and industry.

    But I know that together we can achieve great things. Thank you again for your welcome, and all that you do.

  • Andrew Griffith – 2023 Speech to The City UK’s Annual Dinner

    Andrew Griffith – 2023 Speech to The City UK’s Annual Dinner

    The speech made by Andrew Griffith, the Economic Secretary to the Treasury, to The City UK’s Annual Dinner on 2 February 2023.

    Good evening, everyone, and thank you for the invitation to speak to you. And thank you Miles for your kind introduction.

    Your contribution to the sector, to the economy, to people’s lives is well known.

    Along with related professional services, you contribute over 10% of the country’s GDP, 2.2 million jobs. The largest capital market in Europe and the second largest in the world. And that’s before we think about nearly

    £76 billion in total taxes which is enough to fund the entire police force and school system.

    The UK is fortunate to have such a strong sector. We know that you have a choice of where to locate and will never take you for granted.

    You are part of our history.

    London was one of the first ever stock exchanges to be founded.

    This year marks 250 years since a group of stockbrokers

    moved to Sweeting’s Alley to set up a formal club.

    Before then, for close to a century, they’d be working out of the City’s coffee houses because they were deemed too uncouth and rude to be allowed into the Royal Exchange, the City’s centre of commerce.

    Of course, I’m sure nobody at all would have that view today!

    But in all seriousness, from those humble coffee house roots – shared by insurers at Lloyds Coffee Shop – the entire financial services sector has become a data and markets giant.

    From early trading in precious metals, to the telegraph revolution, ticker tape and real time prices. And in between all of the innovation, supporting war efforts, funnelling money into infrastructure and tackling the issues of the day.

    We are at our best when we are contributing to solutions to national and global challenges.

    It was almost a year ago today that we received intelligence about tanks amassing on the Russian border with Ukraine.

    As Putin’s barbaric invasion got under way, you came together to help deliver the biggest economic sanctions in history.

    With the help of the UK insurance sector – really the world’s insurance sector – we followed this by implementing a price cap on Russian oil, further undermining Russia’s ability to profit from aggression.

    And finally, when people’s livelihoods were at risk from a global pandemic, you stepped in to help us support businesses and families with your payments capabilities. So for everything that everyone in this room has done and your individual leadership – thank you.

    As we emerge from a difficult few years for our country, we need to turn our attention to the long-term.

    We have five clear priorities.

    Halve inflation. Grow the economy. Reduce debt. Cut waiting lists. And stop the boats.

    Three of these priorities are about the economy. That’s because the prosperity that it’s our job to deliver can only come on the back of economic stability and growth.

    Yes there are economic headwinds, but we have the highest employment rate for half a century, inflation is lower than 14 other EU countries, and the private sector has grown by 7.5% in the last year.

    And last week a survey of business leaders by PWC said the UK was the third-most attractive country for CEOs expanding their businesses.

    As the Chancellor said last Friday, our vision for the UK is an enterprise culture built on low taxes, reward for risk, access to capital and smarter regulation.

    With volatile markets and high inflation, sound money must come first but our ambition is to have nothing less than the most competitive tax regime of any major country.

    Delivering stability means making sensible choices on spending to tame inflation: not exposing the most vulnerable, but also not believing we can simply spend our way to prosperity.

    As a former CFO myself, I know the importance of balancing the books and I recall graphicly what it was like trying to issue capital in the uncertain markets post 2008.

    But we are well placed. All of the natural advantages which have brought us here remain. Our language, culture, great cities and the rule of law.

    Our universities are ranked second globally for their quality and include three of the world’s top ten. In order to support the ground-breaking work they do, the government has protected our £20 bn research budget, now at the highest level in history.

    Your government has a mandate and a majority and only this week Parliament was passing important financial services legislation.

    The Prime Minister has set out five domains of outsize growth and potential where Britain is up with the very best in the world.

    Advanced manufacturing, the clean energy revolution, life sciences and digital technology. And of course, financial services.

    As your champion I make the case that we count twice. For without efficient and effective capital markets we cannot hope to exploit the potential of the others.

    We are fortunate to be one of the world’s top two financial hubs and the world’s largest net exporter of financial services. Your capability to deploy capital behind innovation combined with our research strengths, makes our aspiration to be a technology superpower ambitious but highly achievable.

    One would think it was self-evident that growth is good.

    As Robert Colvile, Director of the Centre for Policy

    Studies, argues in his report “The Morality of Growth” that to some, growth has become the enemy.

    Obviously, I disagree. This entire Government does.

    That’s important because the private sector, we must never forget, is what drives growth and lets us invest in public services.

    And, as Colvile writes, “firms are most effective at doing good when they do well – when they are profitable and successful and attractive employers”.

    Let me speak personally for a moment. As we chart our course in a globally competitive marketplace, we have to be clear eyed about what it is that we want to be good at.

    My view is simple: if we can’t be globally effective in financial services, we should all go home now.

    It is my job to help you achieve that. To remove friction, to support and celebrate risk takers and to shape regulatory frameworks that are well regarded but agile.

    As I’ve said before, this sector has had more reviews than Netflix. Many of the authors and contributors are here tonight. We know what we want to do. Now is the moment to get on and deliver.

    We are taking this forward in a number of ways: through the Financial Services and Markets Bill, and through the Edinburgh Reforms.

    Unleashing the sector, realising potential, delivering for you and for UK plc.

    My ambition is for us to be the global financial hub – using our strengths to enhance strong relationships with jurisdictions all around the world, attracting investment and increasing opportunities for cross-border trade.

    I want to work hand-in-glove with you this year on the priorities I have agreed with the Chancellor.

    First, is to deliver the Financial Services and Markets Bill.

    To get that on the statute book by Easter so we can unlock the reforms it contains.

    Second, as I’ve alluded to, is boosting competitiveness by delivering the Edinburgh Reforms.

    Third, and related, is to unleash private capital to invest in all those growth sectors I mentioned earlier.

    And fourth, I want us to bolster financial inclusion and support retail savers and investors.

    Good regulation has the power to be a positive tool to enable you all to compete in a global world.

    I am grateful to TCUK for your work on how the regulators’ authorisation processes can be made more efficient.

    This is an important area, and one that I have raised with the leadership of the FCA and the PRA.

    I am pleased that they have committed to make improvements and I am grateful for their collaboration.

    In order to strike a better overall balance, the Financial Services and Markets Bill will introduce a new secondary objective in law for the PRA and the FCA on growth and international competitiveness.

    That’s important, and taken with a number of other measures, we do expect to see a real change.

    And I want to put to bed any idea that this is about a race to the bottom: the government’s vision is about making UK regulation more proportionate and simpler whilst retaining high regulatory standards.

    Nor do we seek to diverge for divergence’s sake. In running international businesses, no one wants to add extra complexity or difference. The ambition of a European MoU remains.

    Whether it’s implementing the outcomes of Lord Hill’s Listing Review or making regulation more tailored for the UK market, we’re ensuring we remain one of the best countries in the world to do business.

    As the Chancellor laid out just days ago, if we’re going to have successful Enterprises – growing companies need capital.

    That is why we have selectively used the regulatory flexibility we now have.

    One of the most tangible examples – one that will unlock over £100 billion of pounds for productive investment, creating jobs and prosperity – is reforming Solvency II.

    It is a change that will unleash capital into productive investments, such as offshore wind.

    It will allow the insurance sector to play an ever-greater role in providing opportunity to left behind communities and our transition to Net Zero, with the industry expecting to invest more than £100 billion over the next decade.

    Good for business: good for the country.

    And then there’s an issue close to my heart: financial inclusion.

    What does that mean?

    It means making sure all people, regardless of their background or income, have access to the useful products and services which help them succeed in life.

    And let me be clear: this isn’t woolly talk.

    We’re driving tangible measures.

    Take access to cash. You don’t need telling that one of the macro trends we’re likely to see continue this year is a move from cash to electronic payments.

    Yet cash is something that millions cannot currently live without.

    Those in rural communities, the elderly, those who use cash to manage personal finances.

    That is why, for the first time since the ancient Kelts began minting coins in the British Isles, this year will see communities’ benefit from new laws to protect access to cash.

    It is also a personal mission to foster an environment that supports individual savers and investors.

    This is a government that will always be on the side of those saving for the future or their retirement.

    It’s these steps – and more – that show we mean it when we say financial services need to deliver for everyone.

    Finally, one of the reasons this sector is so successful is innovation. We want to do everything we can to ensure that UK financial services are at the forefront of technological advancements.

    Just look at fintech – what an incredible UK success story.

    Despite a challenging economic backdrop, the sector attracted $12.5 bn of investment last year.

    That’s second only to the US globally. It’s more than the next 13 European countries put together.

    We are committed to turbocharging the growth of the UK fintech sector with the new Centre for Finance, Innovation, and Technology – CFIT.

    Indeed, today we’ve heard the exciting news that Ezechi Britton has been appointed as the CEO of CFIT.

    He brings extensive experience as a fintech entrepreneur and in venture capital investment.

    Building on our FinTech lead, we are going to go further, establishing a framework for regulating cryptoassets and stablecoins.

    Just yesterday we published a consultation setting out comprehensive proposals for regulating the sector. It’s a big potential opportunity – I want to get it right so am actively seeking your views.

    The golden thread here is innovation. Being at the forefront of change, is how we will make the UK the natural home of innovative financial services companies.

    Rather than looking enviously at our competitors, I want them to look to emulate us.

    Ladies and Gentlemen, Miles, I am excited.

    Excited to be in this job, and excited to be able to push ahead with a significant programme of work for the balance of this year.

    The opportunity we have is substantial and the moment to seize it is right now.

    Together we can continue to build the UK as one of the world’s most competitive locations for financial services.

    A financial services superpower that will help secure the long-term economic wellbeing of the country.

    Thank you again for your welcome, thank you for listening and thank you for everything you continue to do for this industry and this country.

  • Andrew Griffith – 2022 Statement on the Mortgage Guarantee Scheme Extension

    Andrew Griffith – 2022 Statement on the Mortgage Guarantee Scheme Extension

    The statement made by Andrew Griffith, the Economic Secretary to the Treasury, in the House of Commons on 20 December 2022.

    Today I can inform the House that the mortgage guarantee scheme will be extended by an additional year to continue to support homebuyers and movers with smaller deposits. The scheme will now close to new accounts on 31 December 2023.

    HM Treasury launched the mortgage guarantee scheme in April 2021, which provides a guarantee to participating lenders across the UK who offer mortgages to first-time buyers and existing homeowners with a deposit as small as 5% on homes with a value of up to £600,000. Since its launch last year, the scheme has successfully restored the availability of 91 to 95% loan-to-value mortgage products, directly supporting over 24,000 households to buy their homes—85% of which were by first-time buyers. Since 2010, more than 687,000 households have been helped into home ownership through Government schemes.

    While the mortgage guarantee scheme was originally planned to close to new mortgage applications on 31 December 2022, HM Treasury has decided to extend the scheme by an additional year to continue to provide lenders with the confidence to offer low-deposit mortgages to consumers.

    Guarantees issued under the scheme are valid for up to seven years after the mortgage is originated. Participating lenders pay HM Treasury a fee for each mortgage entered into the scheme. This is set so that expected claims against the guarantee should be covered by revenue from the fee.

    In order to ensure products remain available, HM Treasury will therefore be extending the duration of the Government’s contingent liability for an additional year beyond its planned closing date of 31 December 2022. The Department is also reducing the maximum contingent liability cap from £3.9 billion to £3.2 billion, which remains set at a level so as not to constrain the ability of lenders to access the scheme. This liability would only materialise if the sum of commercial fees paid by lenders would not be sufficient to cover calls on the guarantee.

    Authority for any expenditure required under this liability will be sought through the normal procedure. HM Treasury has approved this proposal.