Richard Spring MP
Member of Parliament for West Suffolk

David Cameron got a bit of flak for going to Iraq instead of addressing the CBI, although it was the only two days made available to him to make the visit. The one thing for sure in politics is that you will be criticised…….

However last night David came to address the Conservative City Circle, which I co-chair with Michael Spencer. We had over 1000 guests, and had to turn away many others. We also announced the establishment of City Future which is a group of young City professionals who will have a formal launch early in the New Year.

The real point is the way David captured his audience and was at times almost mobbed afterwards. What a contrast from years gone by. Afterwards he addressed another City dinner, and took a whole range of questions, with good humour and aplomb.

George Osborne will be speaking to a group of corporate finance executives in the City today; he and his team have been assiduously working the patch.

I’m afraid that sending Ed Balls into the fray, when the financial services industry has been ignored for nine years, is too little too late.

The success of the event last night was one clear way of celebrating David’s first year as leader. Eat your heart out, Gordon. 

Having written a report on the Financial Services Authority nearly two years ago, it is good to know how committed the FSA has become to principles-based regulation. There has been progress, most recently recognised by the Association of British Insurers. Given the supreme importance of the financial services industry to the British economy, it is vital that it thrives and prospers.

It is interesting how the public understands its importance. For example, NASDAQ, based in New York, is trying to buy our Stock Exchange. It would only be a source of concern to most if that involved our having to be subject to US regulation. Given the mobility of the industry, financial businesses are moving to London, and away from New York. The US regulatory environment is regarded as oppressive. The US Treasury Secretary has warned of its consequences.

Isn’t it ironic that the United States, a beacon of free enterprise, has gone down a regulatory route which is demonstrably backfiring? We are the beneficiaries, but let us not be complacent. Soon the level of sophistication in a city like Shanghai may begin to look compellingly attractive. And so much Brussels-think is wedded to a social model increasingly irrelevant in our globalised market place.

We need to remain very much on our guard. In the meanwhile, what is America’s loss is our gain.