Barclays urges the UK to change rules to attract treasury business

Barclays urged the UK government to adopt policy changes intended to encourage more foreign companies to manage their cash and treasury operations from the United Kingdom, arguing the shift would strengthen the domestic economy.

RATIONALE FOR THE PUSH

In a report published on 2 June calling for a refocused UK foreign investment strategy, Barclays said the UK should develop a standalone, coordinated strategy to attract and retain corporate treasury centres, with the objective of re-establishing the UK as the default location for complex, cross-border treasury operations. The Financial Times, in a piece on 3 June, characterised the appeal as enlightened self-interest.

The report pointed to the UK's structural advantages, including legal certainty under common law, deep and liquid FX and risk-management markets, a high concentration of global banks and a time zone that bridges Asian and US trading hours. It estimated that at least USD 400 billion of cross-border deposits in the UK supported the treasury and cash management operations of foreign corporates. It said that while the UK remains the world's leading hub for cross-border deposits, its global share has edged down as competitor jurisdictions adopt increasingly deliberate strategies to attract treasury and cash management activity.

POLICY RECOMMENDATIONS

Barclays said the causes of the UK's declining market share should be diagnosed, including tax uncertainty, regulatory friction, balance sheet constraints and talent mobility. The report called for a standalone strategy to attract and retain multinational corporate treasury centres, greater policy certainty and a clearer narrative positioning the UK as the most open major economy for global capital. It said fragmented policy levers - tax, regulation, infrastructure and immigration - should be consolidated into a clear corporate treasury proposition led by HM Treasury.

WIDER CONTEXT AND CONSIDERATIONS

The report noted that jurisdictions such as Singapore and Hong Kong actively implement tailored strategies to attract corporate treasurers and cash deposits, citing Singapore's Finance and Treasury Centre scheme. It said the UK's share of global foreign deposits had declined from 20.4% in 2015 to about 18.7% in 2025.

Barclays also proposed positioning the UK as a hub for next-generation treasury centres, expediting tokenised sterling deposit and stablecoin regulation, and supporting upskilling of the UK's corporate treasury professionals.

Sources: Barclays, 'Building an investment-led growth model' (2 June 2026); Financial Times