Birmingham’s bid to attract the banks

The government's plan to turn Birmingham into a financial hub is a good one, says Matthew Lynn. But it's going to have to do much more to lure in the big money.

Birmingham isn't famous for much. Heavy Metal. Balti houses. A distinctive accent. And a complicated motorway system. In a few years, however, it may be better known for gleaming skyscrapers, champagne bars, and dealing floors. Britain's second city is targeting financial service as the key industry for its new enterprise zone one of the first under a new government scheme to offer tax breaks to regional centres.

It is a good idea. Finance is one of the industries that Britain does well, but it is far too concentrated in London and the southeast. Regional centres such as Birmingham have a proud history of financial innovation. The trouble is, a few minor tax breaks are not going to persuade banks and fund managers to move there.

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Matthew Lynn

Matthew Lynn is a columnist for Bloomberg, and writes weekly commentary syndicated in papers such as the Daily Telegraph, Die Welt, the Sydney Morning Herald, the South China Morning Post and the Miami Herald. He is also an associate editor of Spectator Business, and a regular contributor to The Spectator. Before that, he worked for the business section of the Sunday Times for ten years. 

He has written books on finance and financial topics, including Bust: Greece, The Euro and The Sovereign Debt Crisis and The Long Depression: The Slump of 2008 to 2031. Matthew is also the author of the Death Force series of military thrillers and the founder of Lume Books, an independent publisher.