LAVA Advisory Partners: Opportunity to boost UK GDP
By Paul Joyce, Partner at LAVA Advisory Partners
In a world that's becoming increasingly protectionist, it's nice to see a government open its arms to the world and say, "Welcome." After the Chancellor’s Mansion House speech, it's absolutely right that the UK prioritises growth at this point in the cycle, and taking a more pragmatic approach to regulation is the right way to do it.
The financial services industry has taken the brunt of the blame and pain post-financial crisis (and, in some respects, rightly so!), but now is the time to take a more balanced approach to regulation and oversight, so we can get back to encouraging firms to be entrepreneurial and positive.
We're seeing a lot of capital coming out of the US, looking to invest in Europe, so why not take the opportunity to entice that capital into the UK? We were told that one of the much-heralded benefits of Brexit was the ability to differentiate ourselves from the EU, and this is an example of the government actually seizing the initiative and looking to deliver on that promise.
Could they go further? They need to be careful not to go too far the other way and throw the baby out with the bathwater, but perhaps encouraging asset managers—particularly US private equity and venture firms—into the UK might also boost investment in entrepreneurial UK companies and give them the capital to take on larger businesses and grow internationally themselves.
There's an opportunity to create a virtuous circle of investment, growth, and employment in the UK economy, which should help start to boost GDP and bridge the spending gap. Hopefully, this is the government's first step on that journey, and the start of a more positive outlook for the UK economy and the financial services sector.
