City of London Corporation Autumn Budget Response 2025

The Autumn Budget arrives at a challenging moment for the UK. High energy costs, labour market instability, and stubborn inflation are just some of the many factors constraining growth.

£110bn contributed by FPS sector to public purse

The financial and professional services sector contributes over £110 billion to the public purse – around 12% of total government tax receipts, exceeding the UK’s entire annual education budget. If the government is serious about driving growth, this sector is its engine.

As the UK Government’s trusted partner across financial and public service delivery, the City Corporation has developed its Budget submission with three clear aims:

1. Reform tax policy in financial and professional services to better support the UK’s industrial strategy.
2. Mobilise domestic capital for infrastructure investment.
3. Raise overall investment levels; through the new Office for Investment: Financial Services and leading globally on sustainable finance.

The City of London Corporation is calling on Government to:

	Reform tax policy in financial and professional services to better support the UK’s industrial strategy.
	Phase out the bank levy and surcharge to increase our international competitiveness. Abolish stamp duty on UK shares; as a first step, remove stamp duty on recent IPOs to encourage more London listings.
	Mobilise domestic capital for infrastructure investment.
	Develop a credible pipeline of investible projects in areas that will enhance UK productivity, including digital, energy, and transport infrastructure. Increase retail investment through a culture shift from saving to investing, by: Reviewing incentives between Cash ISAs and Stocks & Shares ISAs. Finalising the Advice Guidance Boundary Review, and support firms to offer targeted support to investors. Consider policy options to nudge savers towards equity investment when in their best interests, particularly in UK-listed equities.
	Raise overall investment levels; through the new Office for Investment: Financial Services and leading globally on sustainable finance.
	Create an AI-enabled digital platform for the new Office for Investment: Financial Services, to connect capital with projects; automate onboarding and improve responsiveness. Strengthen alignment of public finance institutions to help build investible transition markets and de-risk private capital. The Government should also champion the Transition Finance Council’s Guidelines consultation at COP30, ensuring the UK sets the global standard for transition finance.

The UK cannot afford hesitation—policy clarity and bold action are essential to unlock growth. By implementing these measures, Government will secure investment, strengthen competitiveness, and ensure Britain retains its position as the global leader in financial and professional services.