London’s global competitiveness

Report highlights the need for improvements to the UK tax regime

A report reviewing the competitiveness of London’s financial centre, produced for the Mayor of London, highlights the need for improvements to the UK tax regime if London is to compete on a level playing field with centres like Dublin and Luxembourg which have succeeded in attracting funds away from the UK.  The investment industry is already working with government on a package of tax measures designed to enhance the competitiveness of UK authorised funds and make the UK a more attractive domicile for funds.

Changes will also be required to regulation, particularly in the light of the current financial crisis.  Addressing the challenges of the current economic situation will need to keep uppermost the objective of restoring investor confidence in the financial system and the markets, and consequent reform needs to be well targeted to that end, according to the report.