UK Chancellor of the Exchequer, Rachel Reeves, has travelled to Rio de Janeiro to rally interest in British businesses, of which finance, fintech and payments firms make up a large contingent.
HM Treasury, the department Reeves has chief political oversight of, announced her attendance at the G20 Finance Ministers and Central Bank Governors Meeting in Brazil’s second-most populous city this morning (Thursday 25 July).
Reeves plans to emphasise the newly elected Labour Party’s plans for economic growth to the various world leaders assembled at the G20. The relationship between the UK and Brazil, the world’s respective sixth and eighth largest economies by nominal GDP, is also on the Treasury’s G20 agenda.
The newly elected Labour government has been working, both before and after the 4 July election, to present itself as a party for business. The government hopes that by urging world leaders to ‘take a look at Britain’ and its ‘industries of the future’ it can achieve this promise
“Over the coming days my message to international leaders is simple: after years of uncertainty and instability, Britain is open for business once again,” Reeves explains.
“This new government’s number one mission is to boost economic growth so we can make every part of the country better off. That can only happen by working alongside business from around the world to encourage them to invest in the jobs and industries of the future.
“That is why over the coming two days I will be banging the drum for British business and urging leaders to take another look at us.”
It is important to take a look at what ‘industries of the future’ Reeves and HM Treasury are planning to bang the drum for whilst in Brazil. Green finance is one particular area of interest, the Treasury states.
The government has highlighted a particularly strong relationship between the UK and Brazil in green finance, pointing to Brazil raising $2bn by listing its sustainable sovereign bond on the London Stock Exchange (LSE).
On a broader scale, the government will also be hoping to attract investment from various world economies – not just Brazil – to different segments of the UK economy. Although not mentioned by HM Treasury in the build up to the G20, tech and fintech are two key areas to consider.
Under Labour’s Conservative predecessors, much was made of Open Banking, AI and digital finance technologies. Labour has made it clear through policy documents, individual statements and its election manifesto that it plans to do the same.
Winning over foreign investment, as well as interest in the UK”s fintech and payments products, will be essential to ensuring that its financial services sector continues to thrive.
Reeves concludes: “I’m ready to take my seat at the table alongside fellow finance ministers, steering the world economy and representing our national interests on the major issues of our time, including grasping the growth opportunities of the net zero transition and putting pressure on Russia to end the war in Ukraine.”
