The TUC is today (Wednesday 19th July 2017) publishing a new audit of the economic and social costs and benefits of the financial sector in the UK.
Commissioned from the Financial Inclusion Centre, the report finds that while the City makes a significant contribution to GDP, the financial sector isn't doing enough to support industrial growth across the rest of the UK.
Key findings from the report show how the financial sector is in many cases failing to support investment in the companies needed to grow jobs across the country due to:
Key finding from the report include:
- Conduct costs: Mis-selling has cost investors billions, and undermines public trust in the financial sector.
- Charges and performance: High charges and poor asset allocation in the asset management industry have reduced returns to savers, and deprived firms of investment.
- Financial instability: The UK financial system lacks the diversity needed to withstand future shocks, and has shifted risks to the 'shadow' financial system.
TUC General Secretary Frances O'Grady said:
"Nearly 10 years after the financial crisis, the message of this report is the financial sector still needs reform if it is to deliver for working people. We need a little less talk about self-regulation and a lot more action on delivering investment in the real economy that will lead to better jobs and pay.
"Thousands of union members work in the financial sector. They want to go to work each day knowing that they are helping businesses deliver growth right across the country. They want to do more than just inflate house prices and personal debt.
"Brexit means the City is under scrutiny like never before. We should use this opportunity to ask the basic questions about what we want our financial sector to do – and it's vital that working people are involved in providing the answers."