UK panel to tackle credit crunch

A new panel of City luminaries will help London’s financial services sector tackle the impact of the credit crunch and competition from rival financial centres, the British Treasury said today.

The Financial Services Global Competitiveness Group (FSGCG) will be co-chaired by British chancellor Alistair Darling and Win Bischoff, chair of global banking giant Citi.

The 20-strong committee will meet monthly to discuss factors such as the sub-prime crisis and the rise of new competition from emerging markets, feeding into British government policy.

The committee’s establishment comes after the CBI business organisation said last month that six out of 10 business leaders in London feared its competitive status was under threat.

The survey found the capital’s reputation had been damaged by controversies such as poorly-handled reforms to “non-dom” taxation, which will see foreign residents of more than seven years charged £30,000 (€37,486) to avoid UK tax on overseas earnings.

Mr Darling said the work of the new committee would be “vital”.

He said: “The financial services sector provides more than a million jobs in the UK and accounts for over 10% of GDP.

“It is vital it can respond to the rapidly changing nature of international financial markets, with major shifts in financial flows and players to growing centres of influence and new sources of profit.”

He added: “I have asked Sir Win (Bischoff) to lead an assessment of these global trends, and on their impact on financial centres over a 10-15 year horizon, to help London and the UK maintain and enhance its leading place in the world’s financial markets.”

The committee’s membership features City heavyweights including HSBC chief executive Michael Geoghegan, London Stock Exchange chief executive Clara Furse and Paul Myners, the former chairman of Marks & Spencer who now heads up the Guardian Media Group.

It will report into an existing high-level group established by the then British Chancellor Gordon Brown in 2006 early next year.

Bischoff said: “The financial landscape is changing around the world and we must make sure that world-class centres like London participate and benefit from this trend.”