- Financial and related professional services exports grew by 18.4%
- 47% of financial and related professional services exports originate outside London
- Industry exports totalled £158bn – around £22 in every £100 of total export income
- All regions experienced growth in industry exports in 2022 bar the North West
Financial and related professional services exports from across Britain grew by 18.4% in 2022 (latest available data), according to a new report from TheCityUK.
The report, ‘Exporting from across Britain: Financial and related professional services 2025’, reveals that in 2022, industry exports totalled £158bn, equivalent to around £22 in every £100 of export income in Britain. Almost half (47%) of that contribution originated outside London, with the South East (10.1%), Scotland (6.6%), the North West (5.3%), and Yorkshire and the Humber (4.9%) making the largest contributions to Britan’s total financial and related professional services exports.
Wales had the fastest year-on-year growth at 63.5%; this was followed by the East of England (33.4%) and the West Midlands (33%). Taking into account both the level of industry exports and the growth rate, London made the largest contribution to the year-on -year growth of 18.4%.
All regions and nations across Britain generated trade surpluses in financial services in 2022. London had the largest financial services trade surplus of £41.8bn, followed by the South East (£6.8bn) and Scotland (£5.2bn).
Most British financial and related professional services exports went to non-EU countries (71%), while the EU accounted for the remaining 29%. For the UK as a whole, the US was by far the largest destination for industry exports in 2022, accounting for 33% of the total, with other leading destinations including Luxembourg (5.7%), France (5.2%), Ireland (4.2%), and Germany (3.6%). Overall, the UK is the world’s second largest exporter of financial services, after the US.
Anjalika Bardalai, Chief Economist and Head of Research, TheCityUK, said, “As geopolitical tensions mean trade wars are a prominent risk for the global economy, the importance of services trade to the UK economy is noteworthy. The UK remains a global leader in services trade, with services playing a more significant role in trade in the UK than in most other OECD countries. The UK is a globally leading exporter of services—and financial and related professional services are particularly central to these exports. With nearly half of these exports originating outside London, it is clear that British regions and nations play a vital role in catering to international markets.
“Given the continuing trade policy uncertainty and the contribution financial and related professional services makes right across the country, it is crucial to foster an environment that supports its continued growth and competitiveness.”
In its report, TheCityUK sets out a series of policy recommendations where industry, government, and regulators can work together to support all parts of the country to continue to grow their export potential. These include:
- Improving information about trade opportunities
- Strengthen collaboration and information sharing between the Office for Investment, UK government bodies, and devolved policymakers, especially in new mayoral combined authorities.
- Align government goals at all levels, linking trade promotion with the Industrial Strategy and Local Growth Plans to maximise regional specialisations.
- Pilot a national brokerage scheme to connect capital with investable projects and enhance the identification, structuring, and presentation of opportunities.
- Growing the UK’s share of key global financial and related professional services opportunities
- Work to reach ambitious agreements to improve trade and enhance collaboration with key markets including Switzerland, India, and the Gulf states.
- Put bilateral financial regulatory dialogues with markets such as the US, EU, Singapore, and Japan on a more robust footing by improving transparency, industry engagement and by adopting a more outcomes focussed approach to promote stability and growth in the global economy.
- Work to boost UK and international investment (such as pensions investment) in high-growth companies and develop the UK’s ecosystem for scale-up investment. This will help to keep fast-growing businesses in the UK and grow our share of the global industry.
- Building leadership around key areas of future demand
- Make the UK a global hub for data and technology by using trade and investment policy to lead in global technology and innovation.
- Position the UK as the world’s leading gateway to international investment opportunities.
- Target development work at markets where the industry can deliver the greatest value and capture new market opportunities.
Full policy recommendations can be found on pages 8-9 of the report.
ENDS