Chancellor: Response to international financial climate is vital

The Financial Services Global Competitiveness Group, also headed up by Citigroup chairman Sir Win Bischoff, will meet monthly to analyse global trends affecting the competitiveness of the international financial services industry.

Such trends include the impact of the subprime crisis and the rapid growth of new financial centres in emerging markets, such as Shanghai, Mumbai and Dubai.

"The financial services sector provides more than a million jobs in the UK and accounts for over ten per cent of GDP," observed Mr Darling.

"It is vital it can respond to the rapidly changing nature of international financial markets, with major shifts in financial flows and players to growing centres of influence and new sources of profit," he added.

The group will report directly to the High Level Group on City Competitiveness, set up by the Government in 2006 to develop and support a strategy promoting the capital as a world-leading financial centre.