25 November 2008
Comment from the Lord Mayor of the City of London Ian
Luder
What the Pre-budget Report means for UK financial services
The review of taxes on overseas profits is the right move – we
must stop companies moving their headquarters out of the UK
The City particularly welcomes the new exemption for companies
remitting overseas income, and the review which has been announced
to deal with the taxation of overseas trading profits. This should
help to arrest the number of companies moving their headquarters
out of the UK.
If we get regulation wrong now, we will regret what we have
thrown away in British jobs and prosperity forever
We in the City will play our part and we stand ready to work
with the FSA on its review of financial regulation. The right
regulation can help us retain London’s world-wide competitiveness.
Get it wrong and we will forever regret what we have thrown away in
jobs and prosperity across the UK.
You cannot seriously abolish risk – no risk means no innovation
and no progress
Behind yesterday’s announcements is that basic driver of all
financial transactions: risk. There has been a lot of criticism of
risk and risk-taking, but it is important to remember you cannot
seriously abolish risk. Lending to or investing in a new start-up
company is taking a risk. But without people prepared to take such
risks, society cannot move forward.
We must not frown on rewarding those who take risks and grow
their businesses
Those who take risks - whether it is the inventor giving up a
secure job to grow a germ of an idea or the investor risking their
capital in such a venture - deserve reward if they are successful.
We must not move to a situation where reward is frowned upon and
risk is abolished.
Non-executive directors must more actively scrutinise the risks
their businesses are taking
The crucial point is that banks and other investors must be
aware of the risks they take. Prudent lending and investment is
fine, not lending at all is not. The watchword needs to be
transparency. This is where the evolving role of the non-executive
director comes in. As Lord Myners has recently pointed out, much
more will be demanded of them going forward, and they will need to
be better resourced to undertake their roles.
Ends
Note for editors
More about the Lord Mayor
Press contact
Laura Citron on 020 7332 1835
(laura.citron@cityoflondon.gov.uk)
or Fiona Milligan
(fiona.milligan@cityoflondon.gov.uk)
on 020 7332 3451.