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City Bankers: Marking Their Own Homework (Again)

Writer's picture: Steve ConleySteve Conley

Ah, the City of London—that glittering jewel in the crown of the UK’s economy, or so we’re constantly told by those who profit most from it. For decades, bankers and their ilk have been patting themselves on the back, delivering glowing reports on their contribution to businesses, society, and the "real economy." It’s a bit like a student writing their own report card, only this time it’s all A*s with a suspicious lack of teacher oversight.


The latest report from The Financial Inclusion Centre pulls no punches, declaring that it is "not possible to tell how well finance serves the interests of the real economy, environment, and society." Let that sink in. For all the talk of economic contributions, job creation, and tax revenue, there’s no real evidence—none—that the City’s activities actually benefit the people they claim to serve. So, before we throw ourselves headlong into Rachel Reeves’ agenda of growth for the City, perhaps it’s time to ask a few inconvenient questions. Like, for starters, who exactly is this growth for?


Smoke, Mirrors, and Banker Bonuses


The problem isn’t just that the City’s cheerleaders are a bit self-congratulatory. It’s that their claims are almost impossible to verify. According to the report, “We are left in the dark about the true impact of the City.” Despite mountains of data produced by finance lobbyists, consultants, and regulators, there’s no coordinated effort to evaluate whether finance serves the public good. Funny, isn’t it, how those with the most to gain from keeping things opaque also happen to be the ones controlling the narrative?


Even the metrics we do have, the report argues, are woefully inadequate. Sure, we know how many people the financial sector employs or the tax revenue it generates. But these numbers tell us absolutely nothing about whether the sector is delivering value for money, protecting consumers, or—dare we say it—doing anything useful for society at large. It’s like boasting about how many pizzas you delivered without mentioning half of them ended up on the floor.


A Framework for Accountability


The report, authored by former FCA board member Mike McAteer, makes a compelling case for change. If the government insists on making the City central to the UK’s economic strategy, then we need a framework to judge its performance—not based on glossy PR campaigns or lobbyist spin, but on cold, hard facts.


This framework would measure the economic, environmental, and social utility of finance. In other words, it would ask the City to justify its existence beyond making a handful of already-wealthy people even wealthier. It’s a novel concept: accountability. The kind of thing that’s usually reserved for, well, everyone else.


According to the report, we’d need better data collection and more transparency from regulators. This means moving beyond self-reported metrics—yes, bankers marking their own homework again—to independent evaluations that actually serve the public interest. Imagine that: regulators regulating, rather than just keeping the seats warm.


Shedding Light on the City


The proposed framework would finally allow us to measure whether finance is meeting the needs of the real economy, the environment, and society. Metrics would go beyond GDP contributions and tax takes to evaluate whether the sector is providing value for money and minimising risks and harms. In other words, it would treat finance as the service industry it’s supposed to be, rather than the untouchable golden goose it’s become.


The report acknowledges that developing such a framework won’t be easy, but it’s hardly impossible. After all, if we can track the precise number of calories in a chocolate bar, surely we can figure out whether the financial sector is ripping us off. Yet, for some reason, the powers that be seem oddly resistant to the idea.


The City’s Dirty Little Secret


The truth is, we’re all flying blind when it comes to the true impact of the City. And that suits the bankers just fine. Without accountability, they can continue to rake in bonuses and profit from a system that seems designed to enrich the few at the expense of the many. Meanwhile, Parliament, government, and regulators sit back, nodding sagely, as if the status quo is inevitable.


But it’s not. This report is a wake-up call. If the City wants to be at the heart of the UK’s economic future, it’s time to start proving its worth. And no, bankers’ self-assessed report cards don’t count.


So, Rachel Reeves and company, here’s a suggestion: before jumping on the City growth bandwagon, demand some evidence. Real, independent evidence that the financial sector is serving society, not just itself. Because until we have that, we’re not just marking the bankers’ homework—we’re letting them set the exam, too.

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