By Mathew Carr
March 19-20, 2024 — Just when you think Britain could not move further into the pocket of the United States of America, it does just that.
It’s beavering away at a new sovereign wealth fund potentially sourced from North Sea crude oil and natural gas money, and working to set up another US headquarters/legal entity.
Let’s hope London is moving beyond competition only based on money and profit. I hope London can outcompete America by offering incentives for sustainable business aiming to meet the 2030 sustainable development goals … not just make the most profit out of the world’s currently deeply flawed economic and political systems.
Even better, perhaps London can drag America into the 21st century.
Will the UK election be a test bed for America’s presidential race?
City of London Corp. docs:
(more to come, context, press release below, with Claude AI help)
The UK government has proposed and discussed in recent years establishing a new sovereign wealth fund for the United Kingdom beyond just funding for the royal family.
The main proposal that has been floated is the idea of creating a “UK Wealth Fund” that would operate similarly to the sovereign wealth funds of other nations like Norway and Singapore. A few key points about this proposed UK sovereign wealth fund:
- It would aim to invest surplus government revenues, particularly from assets and natural resources, to generate returns that could fund public services or insulate against economic shocks.
- Potential sources could include revenues from North Sea oil/gas, sales of public assets, or allocating a portion of fiscal surpluses.
- In 2017, the government commissioned a study that recommended creating a £600 billion UK fund, one of the largest globally if established.
- Supporters argue it could provide an investment return to help fund public services, while critics argue the revenues should be used for more immediate priorities.
- The idea has been debated by multiple prime ministers but no consensus has emerged on if/how to actually establish such a wealth fund.
While the Sovereign Grant (see below) exists to fund the royals, there have been ongoing proposals and discussions about setting up a separate, larger sovereign wealth fund for broader economic objectives for the UK, but no final decisions have been made yet.
Brexit boost
The U.S. government did not take an official position advocating for or against Brexit during the 2016 referendum campaign in the UK.
Some commentary and analysis from observers suggested that several factors and individuals connected to the U.S. may have indirectly or implicitly lent support to Brexiteers, such as:
- Steve Bannon, who later became an adviser to President Trump, visited the UK and voiced support for Brexit-backing nationalist movements.
- Some argued the UK leaving the EU aligned with Trump’s “America First” foreign policy stance.
- Brexit was viewed by some as beneficial to establishing a closer US-UK trade relationship outside of EU regulations.
However, the official position of the Obama administration was that the U.S. valued having the UK remain part of the EU as an ally and partner. President Obama warned ahead of the referendum that Brexit could put the UK “at the back of the queue” for trade deals.
Ultimately, the British people voted 52%-48% to leave the EU in the 2016 referendum based on a complex array of political, economic and social factors specific to the UK itself. But there was no direct interventionist campaign or policy by the U.S. government explicitly pushing for Brexit as far as we know based on public information. The decision was a domestic British political matter.
The other, existing wealth fund
The United Kingdom already has a sovereign wealth fund called the Sovereign Grant.
Some key points about the UK’s Sovereign Grant:
- It funds the official expenses of the Queen and other members of the Royal Family carrying out their official duties.
- It is essentially an annual grant approved by the government and paid by the Treasury to the Royal Household.
- The amount of the grant is determined as a percentage (currently 25%) of the profits from the Crown Estate, which owns valuable real estate and rights across the UK.
- For 2022-23, the Sovereign Grant was set at £86.3 million ($107 million).
- It covers staff costs, travel expenses, property maintenance, and the operating costs of the Queen’s household.
- The grant is intended to be used solely for official expenditures required for the Queen’s official duties as Head of State, not for private purposes.
So in essence, while funded from public revenues, the Sovereign Grant acts as a sovereign wealth fund specifically designated to support the official expenses of the British Monarchy. It provides an annual budgeted amount managed by the Royal Household.Copy
12
December
2023
City of London Corporation to open first ever US office to expand UK-US financial services cooperation
The City of London Corporation has today (11 December) announced the opening of their first ever offices in the US at a reception hosted at JP Morgan’s headquarters in New York. There will be a second reception at the UK Embassy in Washington DC on 12 December.
The announcement was made by Policy Chairman of the City of London Corporation, Chris Hayward, to an audience of prominent US businesses, financial regulators, congressmen and other US officials.
There will also be speeches by a senior representative from JP Morgan; Deputy HM Trade Commissioner for North America, Kunal Khatri; and the Lord Mayor of the City of London Michael Mainelli.
Chair of the US Commodity Futures Trading Commission, Rostin Behnam will be speaking at the Washington reception.
The opening of the offices will build on the already close relationship between the two largest financial service centres in the world.
US-UK trade in services increased by 22% over the last year to over £182bn. The UK is also the second largest foreign investor into the US, investing over $600bn, and supporting well over a million jobs.
The City Corporation will appoint Edward Price as Managing Director of the offices.
He will start in late January and will lead on the City’s existing engagement with US officials, regulators and businesses to foster closer UK-US financial regulatory cooperation, improve US market access for UK firms and attract greater US investment into the UK.
UK Economic Secretary to the Treasury Bim Afolami said:
“It’s great to see the City of London opening up new offices in the US. London and New York are two of the biggest financial centres in the world – the US is one of our closest allies and we want to be doing everything we can to encourage closer trade and investment between our two countries.”
Policy Chairman of the City of London Corporation, Chris Hayward said:
“I’m proud to announce the opening of our offices in the US and the appointment of Ed Price as Managing Director.
Since becoming Policy Chairman, I’ve looked to develop relationships with US policymakers and business leaders, so that today’s launch could be possible.”
“With so many challenges requiring an international response, we see potential for greater policy collaboration shaping global approaches to financial stability, sustainability, innovation.
“Being present in-market will allow us to forge deeper ties and collaborate on cutting edge issues that are at the forefront of finance.
“Whether that be fintech, asset management, insurance or professional services. The US represents shared cultural and business values and great opportunity for UK firms.”
Managing Director of the US at the City of London Corporation, Ed Price, said:
“I look forward to this new role. At a time of great global challenges, it is important for the US and the UK to work together. Our nations promote strong trade. We promote investment. And we should better align on policy for financial and professional services. That’s why we’ve created this role.
“The US is a global financial centre. It is a natural partner for London and the UK as we address key issues such as sustainability, productivity, growth, and technological innovations from digital assets to artificial intelligence.”
ENDS
Notes to editors
Repeated here: 12December2023 [Not sure why notes to editors match the release]
City of London Corporation to open first ever US office to expand UK-US financial services cooperationNews ReleasesMedia libraryMedia contactsYouTube
The City of London Corporation has today (11 December) announced the opening of their first ever offices in the US at a reception hosted at JP Morgan’s headquarters in New York. There will be a second reception at the UK Embassy in Washington DC on 12 December. The announcement was made by Policy Chairman of the City of London Corporation, Chris Hayward, to an audience of prominent US businesses, financial regulators, congressmen and other US officials. There will also be speeches by a senior representative from JP Morgan; Deputy HM Trade Commissioner for North America, Kunal Khatri; and the Lord Mayor of the City of London Michael Mainelli. Chair of the US Commodity Futures Trading Commission, Rostin Behnam will be speaking at the Washington reception. The opening of the offices will build on the already close relationship between the two largest financial service centres in the world. US-UK trade in services increased by 22% over the last year to over £182bn. The UK is also the second largest foreign investor into the US, investing over $600bn, and supporting well over a million jobs.The City Corporation will appoint Edward Price as Managing Director of the offices. He will start in late January and will lead on the City’s existing engagement with US officials, regulators and businesses to foster closer UK-US financial regulatory cooperation, improve US market access for UK firms and attract greater US investment into the UK. UK Economic Secretary to the Treasury Bim Afolami said:“It’s great to see the City of London opening up new offices in the US. London and New York are two of the biggest financial centres in the world – the US is one of our closest allies and we want to be doing everything we can to encourage closer trade and investment between our two countries.” Policy Chairman of the City of London Corporation, Chris Hayward said:“I’m proud to announce the opening of our offices in the US and the appointment of Ed Price as Managing Director. Since becoming Policy Chairman, I’ve looked to develop relationships with US policymakers and business leaders, so that today’s launch could be possible.” “With so many challenges requiring an international response, we see potential for greater policy collaboration shaping global approaches to financial stability, sustainability, innovation. Being present in-market will allow us to forge deeper ties and collaborate on cutting edge issues that are at the forefront of finance. Whether that be fintech, asset management, insurance or professional services. The US represents shared cultural and business values and great opportunity for UK firms.” Managing Director of the US at the City of London Corporation, Ed Price, said:“I look forward to this new role. At a time of great global challenges, it is important for the US and the UK to work together. Our nations promote strong trade. We promote investment. And we should better align on policy for financial and professional services. That’s why we’ve created this role.“The US is a global financial centre. It is a natural partner for London and the UK as we address key issues such as sustainability, productivity, growth, and technological innovations from digital assets to artificial intelligence.”
ENDS Notes to editors https%3A%2F%2Fnews.cityoflondon.gov.uk%2Fcity-of-london-corporation-to-open-first-ever-us-office-to-expand-uk-us-financial-services-cooperation%2F