Vision for Economic Growth — a roadmap to prosperity 49 Sources: 31 See reference 9. 54 British Business Bank and Oliver Wyman (2023) https://www.british- 32 See reference 10. business-bank.co.uk/small-business-昀椀nance-markets-report-2022-23- 1 O昀漀ce for Budget Responsibility (2013) https://obr.uk/box/post- British Business Bank (2023) http://www.british-business-bank.co.uk/ 19 factsheet/. 33 UK Finance (2023) https://www.uk昀椀nance.org.uk/policy-and-guidance/ world-war-ii-debt-reduction/#:~:text=Both%20non%2Dinterest%20press-release/british-business-bank-responds-to-the-chancellors-55 UK Listing Review (2021) https://www.gov.uk/government/ spending%20and,rate%20of%20whole%20economy%20in昀氀ation.mansion-house-speech/.reports-and-publications/2022-total-tax-contribution-uk-banking- sector. publications/uk-listings-review#:~:text=The%20UK%20Listing%20 2 O昀漀ce for National Statistics (2019) https://www.ons.gov.uk/economy/20 The UK government estimates "widespread use of digital identity review%20examines,for%20which%20London%20is%20known. 34 TheCityUK (2023) https://www.thecityuk.com/our-work/improving- nationalaccounts/uksectoraccounts/compendium/economicreview/products would be worth around £800m per year to the UK 56 Kalifa Review of UK 昀椀ntech (2021) https://www.gov.uk/government/ april2019/longtermtrendsinukemployment1861to2018#:~:text= economy." Calculated over 6 years, from 2024-2030. See UK regulatory-e昀漀ciency-on-authorisations/.publications/the-kalifa-review-of-uk-昀椀ntech. During%20the%20inter%2Dwar%20years,average%20employment% government digital attributes and trust framework consultation 20rate%20was%2073%25.(2022) https://www.gov.uk/government/consultations/digital-35 Refer to the further detail on International Regulatory Strategy Group 57 UK Secondary Capital Raising Review (2022) https://www.gov.uk/ (IRSG) consultation. IRSG (2023) https://www.irsg.co.uk/publications/ government/publications/uk-secondary-capital-raising-review. identity-and-attributes-consultation/digital-identity-and- Resolution Foundation (2023) https://economy2030.esg-ratings-and-data-products-providers-code-of-conduct-released- 3 resolutionfoundation.org/reports/beyond-boosterism/.attributes-consultation#:~:text=It%20is%20estimated%20that%20for-consultation.58 See reference 21. widespread,%20year%20to%20the%20UK%20economy.36 For Singapore: Monetary Authority of Singapore (2023) https://www.59 Financial Services and Markets Act (2023) https://www.legislation.gov. Resolution Foundation & Centre for Economic Performance, LSE 421 Investment Research Review (2021) https://www.gov.uk/government/ (2022) https://economy2030.resolutionfoundation.org/reports/publications/investment-research-review.mas.gov.sg/development/昀椀nancial-services-industry-transformation-uk/ukpga/2023/29/contents. stagnation-nation/. map-2025. For UAE: Dubai Financial Services Authority (2023) https:// Financial Conduct Authority (2023) https://www.fca.org.uk/innovation/www.dfsa.ae/your-resources/publications-reports/business-plan. 60 For further details please see the following sources: UK Finance See reference 3.22 (2023) https://www.uk昀椀nance.org.uk/policy-and-guidance/reports- 5regtech/digital-regulatory-reporting.For Ireland: Government of Ireland (2022) https://www.gov.ie/en/ ibid. and-publications/uk-capital-markets-building-strong-foundations. 6 publication/ireland-for-昀椀nance-strategy/#updated-ireland-for- ABI (2023) https://www.abi.org.uk/news/news-articles/2023/7/put- Private capital leveraged across the Government’s Net-Zero Strategy World Federation of Exchanges (2022) https://www.world-exchanges.23昀椀nance-strategy. For the UK: HM Treasury (2021) https://www.gov. 7 savers-at-the-heart-of-plans-to-boost-pension-investment/. CMIT org/our-work/articles/2022-annual-statistics-guide.and British Energy Security Strategy. Originally published by the uk/government/publications/a-new-chapter-for-昀椀nancial-services (2023) https://capitalmarketsindustrytaskforce.com. A follow-up Department for Business, Energy and Industrial Strategy, since and TheCityUK (2021) https://www.thecityuk.com/our-work/ report is planned for the Autumn. Other organisations have also replaced by the Department of Energy Security and Net Zero and O昀漀ce for National Statistics via City of London’s City Statistics Brie昀椀ng 8 making-the-uk-the-leading-global-昀椀nancial-centre/. For Japan: (2022) https://www.cityo昀氀ondon.gov.uk/supporting-businesses/the Department for Business and Trade (2022) https://www.gov.uk/JFSA (2022) https://www.fsa.go.jp/en/news/2022/20220926.html. made meaningful contributions to the discussion on reform, such as economic-research/research-publications/city-statistics-brie昀椀ng.government/news/chris-skidmore-launches-net-zero-review.For Luxembourg: Luxembourg for Finance (2022) https://www.the Tony Blair Institute (2023) https://www.institute.global/insights/ 24 Natural capital, as de昀椀ned by the Natural Capital Committee, refers economic-prosperity/investing-in-the-future-boosting-savings-and- luxembourgfor昀椀nance.com/en/publication-mag/the-future-of-the- Aggregation as per City of London State of the Sector Report. Includes 9 to “that part of nature which directly or indirectly underpins value to prosperity-for-the-uk. The City of London Corporation also published 昀椀nancial-industry-in-luxembourg/.For Switzerland: State Secretariat tax revenues from the 昀椀nancial services sector (year to March 2020), a report about unlocking DC scheme capital for growth of the UK’s people, including ecosystems, species, freshwater, soils, minerals, for International Finance (2020) https://www.sif.admin.ch/sif/en/ and legal and accounting tax revenues (calendar year 2020). City 昀椀nancial, professional services and technology sectors. Please see of London (2021) https://www.cityo昀氀ondon.gov.uk/supporting-the air and oceans, as well as natural processes and functions.” home/昀椀nanzmarktpolitik/strategy.html.City of London Corporation (2023) https://www.cityo昀氀ondon.gov.uk/ Natural capital assets provide ecosystem services (eg pollination and businesses/economic-research/research-publications/total-tax-37 TheCityUK and PwC (2017) https://www.pwc.co.uk/industries/ supporting-businesses/economic-research/research-publications/ contribution-of-uk-昀椀nancial-services and TheCityUK (2021) https://water puri昀椀cation) which, in turn, help to support the production of 昀椀nancial-services/insights/vision-for-transformed-world-leading- powerful-pensions-unlocking-dc-capital-for-uk-tech-growth. goods and services across the economy. For further detail, refer to www.thecityuk.com/our-work/total-tax-contribution-study-for-uk-industry.html. 61 See reference 17. legal-and-accounting-activities-2021.the 昀椀rst state of natural capital report: Natural Capital Committee 10 O昀漀ce for Budget Responsibility and HM Treasury (2023) https://www.(2019): https://www.gov.uk/government/publications/natural-capital-38 Monetary Authority of Singapore (2023) https://www.mas.gov.sg/62 See reference 59. committee-natural-capital-terminology.development/sustainable-昀椀nance. gov.uk/government/publications/spring-budget-2023/spring-budget- 39 European Union (2023) https://www.europarl.europa.eu/legislative- 63 See City of London Corporation (2023) for more information on the Time period estimated is from 2022-2032. Green Finance Institute 2023-html.25 Mansion House Compact. https://news.cityo昀氀ondon.gov.uk/lord- 11 According to UNCTAD data, 2022 UK FS exports amounted to US$117bn. (2021) https://www.green昀椀nanceinstitute.co.uk/news-and-insights/train/theme-a-europe-昀椀t-for-the-digital-age/昀椀le-昀椀ntech-action-plan.mayor-welcomes-landmark-agreement-to-unlock-pension-funds/. See 昀椀nance-gap-for-uk-nature-report/.40 See reference 7. the Chancellor's Mansion House speech for more detail on estimates Converted to GBP using 1 August 2023 exchange rate of 0.78 from UK Government (2023) https://www.gov.uk/government/speeches/ Forest Trendsʼ Ecosystem Marketplace (2022) https://www. Oanda. UNCTAD (2023) https://unctadstat.unctad.org/datacentre/.2641 UNCTAD (2023) as published via https://www.theglobalcity.uk/ chancellorjeremy-hunts-mansion-house-speech. 12 Bank for International Settlements (2023) https://www.bis.org/ecosystemmarketplace.com/publications/state-of-the-voluntary-resources/state-of-the-sector-2023. statistics/bankstats.htm. As published via https://www.theglobalcity.carbon-markets-2022.42 See reference 12.64 See reference 18. Illustrative estimate only to indicate bene昀椀t potential and does not uk/insights/state-of-the-sector-2023.2743 Bank for International Settlements (2023) https://stats.bis.org/statx/65 See reference 17. ibid.re昀氀ect a projection. Corresponds to a range of approximately £0.5- 13 srs/table/c1. As published via https://www.theglobalcity.uk/resources/ 66 British Business Bank (2022) https://www.british-business-bank. 0.7bn. Re昀氀ects a base case of 5% uplift (+/- 20% range applied) using state-of-the-sector-2023. co.uk/backing-innovation-led-businesses-2022/. 14 InnovateFinance (2023) https://www.innovate昀椀nance.com/capital/ 2022 levels, which equates to up to 6%. For context, FPS FDI in the 昀椀ntech-investment-landscape-2022/. past four years (2019-2022) has grown by a compound annual growth 44 London Market Group (2022) https://lmg.london/document/4900/.67 © Parliamentary Copyright House of Commons 2023. House of rate of 12%, with strong recovery since 2020. FPS FDI data per fDi Commons Treasury Committee (2022-3) https://committees. ONS, Business Register and Employment Survey 2021 (2022 release); 15 45 Bank for International Settlements (2023) https://www.bis.org/ Markets and as published by the City of London Corporation in their parliament.uk/publications/41030/documents/200122/default/. NISRA, Business Register and Employment Survey 2021 (2022 2023 report on FPS FDI.statistics/rpfx22.htm. As published via https://www.theglobalcity.uk/ release). Available via the City Statistics Brie昀椀ng (2023) https://www.resources/state-of-the-sector-2023.68 See reference 19. cityo昀氀ondon.gov.uk/supporting-businesses/economic-research/ Illustrative estimate only to indicate bene昀椀t potential and does not 28 46 © Investment Association. Investment Association (2022) https://www. 69 Please see British Business Bank Finance Hub (2018) https://www. research-publications/city-statistics-brie昀椀ng. re昀氀ect a projection. We estimate an additional uplift on forecasted theia.org/sites/default/昀椀les/2022-09/Investment%20Management%20 british-business-bank.co.uk/昀椀nance-hub/. Innovate UK Innovation TheCityUK (2022) https://www.thecityuk.com/our-work/exporting-growth rates associated with the bene昀椀ts of having an FPS strategy 16 Survey%202021-22%20full%20report.pdf. Hub (2022) https://ukinnovationhub.ukri.org/. DBT funding catalogue from-across-britain-2022/.and the role of the Hub in reinvigorating promotional e昀昀orts. https://www.gov.uk/business-昀椀nance-support. UKRI Funding Finder 47 ibid. Corresponds to a range of approximately ~£19-29bn, rounded to the (2020) https://www.ukri.org/opportunity/. Re昀氀ects the estimates cited by the Chancellor in his Mansion House 17 nearest billion. Calculated over 6 years from 2024-2030. Assumption 48 New Financial, CMIT (2023) https://capitalmarketsindustrytaskforce.com/. speech on 10th July 2023. Re昀氀ects £50bn for DC schemes with a 5% 70 See reference 19. of a 50% uplift on the compound annual growth rate for UK goods 49 The Association of British Insurers (2023) https://www.abi.org. allocation to private equity, and £25bn for LGPS with a 10% allocation and services exports from IMF forecasts results in a range of ~0.8- 71 TechUK (2023) https://www.techuk.org/resource/a-uk-tech-plan-how- uk/globalassets/昀椀les/publications/public/lts/2023/abi-pension- to unlisted equities. The former estimate assumes that the UK 1.2% additional uplift, rounded to the nearest tenth of a percent. investment-report.pdf. the-next-government-can-use-technology-to-build-a-better-britain.html. workplace DC market adopts the objectives of 昀椀rms in the Mansion Adjusted for in昀氀ation based on CPI in昀氀ation forecasts. FS export data 72 TechNation (2023) https://technation.io/a-decade-of-uk- House Compact. Government plans to consult on the allocation of from UNCTAD (worth ~US$117bn in 2022). Forecast of export growth 50 Institute for Fiscal Studies (2023) https://ifs.org.uk/publications/tech/#investment-and-valuations. the latter estimate for LGPS. Bene昀椀ts are accrued by 2030, with no speci昀椀cation if beginning or end year. Refer to further detail here: and CPI in昀氀ation from IMF World Economic Outlook — April 2023. challenges-uk-pension-system-case-pensions-review. UK Government (2023) https://www.gov.uk/government/speeches/UNCTAD (2023) https://unctadstat.unctad.org/datacentre/. IMF World 51 The Pensions Regulator (2021) https://www.thepensionsregulator.73 See reference 14. chancellor-jeremy-hunts-mansion-house-speech.Economic Outlook (2023) https://www.imf.org/en/Publications/WEO/gov.uk/en/document-library/corporate-information/corporate-plans/74 For example: a recent report by UK Finance and Oliver Wyman weo-database/2023/April. The Association of British Insurers (ABI) estimates that from 2024 tpr-strategy-pensions-of-the-future#7218018e044642f08287257b7explored the future of securities tokenisation and how the UK 18 £225bn in investment estimated as an aggregation of the £100bn in Solvency II reforms will create “the potential for the industry to invest 29e0f5bcb. could consolidate its role as a global 昀椀nancial centre. Refer to the insurance and long term savings capital unlocked through Solvency 52 Department for Work and Pensions (2023) https://www.gov.uk/report: UK Finance and Oliver Wyman (2023) https://www.uk昀椀nance. over £100bn in the next ten years in productive 昀椀nance, such as UK II reforms, the £75bn in pension capital for investment announced org.uk/policy-and-guidance/reports-and-publications/unlocking- government/statistics/gender-pensions-gap-in-private-pensions/ social infrastructure and green energy supply.” The value of private in the Chancellorʼs Mansion House speech, and a portion of the power-securities-tokenisation. Global Financial Markets Association the-gender-pensions-gap-in-private-pensions. Refers to a 35% gap insurer investment that could be achieved is highly dependent on the £100bn in private capital leveraged as part of the net zero transition, (2023) https://www.gfma.org/policies-resources/gfma-publishes- between male and female uncrystallised non-zero median pension nature of the Solvency II reforms and, speci昀椀cally, the changes to the as stated by the UK government. We estimate a portion of the net wealth around normal minimum pension age in 2018 to 2020.report-on-impact-of-dlt-in-global-capital-markets/. matching adjustment and how they will be implemented. The PRA is zero capital leveraged will overlap with the unlocked pension capital 75 See reference 71. consulting on this later this year. See further detail from the ABI here: 53 British Business Bank (2019) https://www.british-business-bank.co.uk/ https://www.abi.org.uk/news/news-articles/2022/11/solvencyiireform/ and insurance and long-term savings capital. We have applied a 50% research/the-future-of-dc-pensions-enabling-access-to-venture-76 Oliver Wyman Forum (2022) https://www.oliverwymanforum.com/ and here for the PRA consultation: https://www.bankofengland.co.uk/discount rate on the net zero capital leveraged to account for this capital-and-growth-equity/.global-consumer-sentiment/a-gen-z.html. overlap. See references 17, 18, and 23 for additional information. prudential-regulation/publication/2023/june/review-of-solvency-ii- Financial Services Skills Commission (2023) https://昀椀nancialservicesskills. adapting-to-the-uk-insurance-market.30 org/news/2450-2/.