Chancellor Sunak shares an Appetiser ahead of the main meal at Mansion House
Ahead of his first important speech at Mansion House on Thursday, Chancellor Rishi Sunak on whom many households have relied on for support over the pandemic, has today announced his plan to develop a roadmap for financial services which will impact us all, in ways not immediately obvious.
It is expected he will pledge to make the UK the most "advanced and exciting" financial services hub in the world and will outline a roadmap for the sector that aims to "sharpen" its competitive advantage.
At the same time he has said he will also set out a plan to force companies to report their environmental impact. Firms will have to say how climate change is likely to affect them.
The new Integrated Sustainability Disclosures Requirements will apply to firms "across the economy", the Treasury said and Mr Sunak will state that "As the baton passes to a new generation of leaders in finance, I feel optimistic about the future. Ambitious at home. Confident internationally," the chancellor will say.
"With a plan to make this country the world's most advanced and exciting financial services hub for decades to come, creating prosperity at home and projecting our values abroad.
The determined position follows on from Amsterdam ousting London in January as the largest financial trading centre in Europe as Brexit-related changes to finance rules came into force.
The full roadmap document, to be published later, will add further details of what is described as an "ambitious vision" for reforming the financial sector at a time when the global economy is striving to recover from the COVID pandemic.
While there is still much concern about international relations in the wake of Brexit, the news of Nissan’s £1 billion investment in battery driven cars at their plant in Sunderland will offer a warm backdrop of substance over rhetoric for Mr Sunak's speech.
Climate targets
This first Mansion House Speech for the Chancellor will be the first since his assuming office and is considered the Chancellor’s key opportunity to lay out policy plans for the year and essentially spell out his view of the economy (without expletives) not just in the UK, but around the world and outline his aims for the future. Could be a long one in that case so I hope the seats are comfortable.
The new measures he is set to announce will add to pressure on big companies to help mitigate the effects of climate change.
With both Shell & BP being forced by shareholder pressure to reduce its greenhouse gas emissions more quickly than they might have liked, combined with successful legal rulings to back up their claims, both oil giants are having to speed up their plans and deliver on promised outcomes.
Despite that, experts say mandatory reporting would be more transparent and make it easier to compare companies' progress. Transparency is traceability as they say.
To add their own Green Giant weight to the argument, on Wednesday, the government announced details of a new green bond, which the Treasury hopes will raise at least £15bn.
The money will be invested in zero-emissions buses, offshore wind and efforts to decarbonise homes and buildings, as well as climate change adaptation programmes, such as flood defences or tree planting.
