UK regulations lack competitive edge, report

The UK’s regulatory and taxation position should be subject to independent surveys each year and measured against other global financial centres, a new report, commissioned by the Mayor of London’s office, has recommended. In a review of London’s competitive position as a financial centre, the report says a series of events, including Northern Rock and Lehman Brothers, has damaged confidence in London as a place to do business, and the UK’s reputation for leading global financial regulation needs to be restored. Moreover, the increasing influence of pan-European regulation has reduced the UK’s competitiveness, and the country’s reputation for predictable taxation policies has declined while other financial services centres have introduced more competitive taxation and regulation and have proved to be more efficient at coordinating promotion efforts to attract financial services businesses.