What do bosses of the UK's 'engine room' want from the Budget?

London contributes 22% of UK's GDP - how can the Budget help it grow?

It's lunchtime here in the "engine room" of the UK economy - the City of London - where workers pound the pavements, hurrying between meetings. It may feel like a world unto itself, but with a crucial Budget looming, what happens here could impact the whole country.

Ahead of next week's announcement, what are bosses calling for?

"If the City of London does well, it will be felt in everybody's pockets."

Chris Hayward, leader of the City of London Corporation, is keen for the Budget to help boost London's financial district.

The Square Mile employs about 676,000 workers - up more than 25% on pre-pandemic levels - and contributes £109bn to the UK economy, about 4-5% of the UK's gross domestic product (GDP).

According to the Office of National Statistics, London as a whole contributed £618 billion in 2023, about 22% of the UK's GDP.

"I am hoping the chancellor will announce measures to stimulate growth and global competitiveness," said Mr Hayward, having called the sector the "engine room" of the UK.

He wants to see stamp duty on shares removed, and to ensure Chancellor Rachel Reeves does not raise taxes on financial services.

He also stressed the importance of welcoming new technologies and AI - rapidly growing sectors.

Chris Hayward says if London does well, everyone in the country benefits

London is widely recognised as the UK's fintech capital, whereby technology is used to support and improve financial services. It is one of the leading global hubs for fintech innovation.

Janine Hirst, CEO of Innovate Finance which represents the UK's FinTech sector, described the industry as a "tremendous success story for the UK".

She said it was a sector which could help the chancellor grow the economy.

"If we can't support the sector, we stunt huge opportunities for growth," she said.

Janine Hirst, CEO of Innovate Finance warns the UK finance industry is part of a "global race for talent"

Ahead of the Budget, Ms Hirst wants to see more support for entrepreneurs, warning the country is part of a "global race for talent".

"Entrepreneurs are mobile, so can quickly pick up, move, chose other regions. We need them to be choosing the UK for the sector."

About 40% of the City of London's workforce in the financial and professional services sector is international talent, according to the City of London Corporation.

Steadiness is also what business leaders are looking for.

"Anything Britain can do to exude a sense of stability with its fiscal situation and its currency makes it a more attractive location to do business," says Professor Joe Fowdy from the NYU Stern School of Business.

"You need the ability to attract the best and brightest."

To attract international talent to the area, Mr Hayward said the country was lagging behind in terms of foreign investment.

"We need to talk up London, and what we can offer," he said.

"We are sometimes too pessimistic. We have to have confidence if we compete on the global stage."

The City - which includes Leadenhall Market - attracts workers from around the world

The Chancellor said the UK was "well and truly open for business".

In July, she announced reforms to cut significant amounts of red tape as part of a plan co-designed with the industry to attract investment, with more than £110 billion secured in September from major financial services firms including Revolut, Blackstone and PayPal.

Reeves has also announced new support for financial services firms including fintech to help them scale up, invest and create high-skilled jobs.

"Through our Leeds Reforms we're making Britain the best place for financial services companies to do business, pushing us ahead in the global race for investment and putting more money in people's pockets through the Plan for Change," she said.