- More than half of the 354,000 jobs created by the UK’s financial and related professional services industry in the decade to 2022 were outside London.
- The industry’s economic contribution increased by 11% over the same period, contributing £248bn in 2022 alone.
- TheCityUK urges targeted policies for policymakers at all levels on devolution, connectivity, and skills reforms to spur growth.
The UK’s financial and related professional services industry is a critical driving force of growth and jobs across the country. New research from TheCityUK underlines the significant contribution the industry makes to the national economy in every region and nation, and makes clear its potential to unleash faster growth boost through targeted policy action.
TheCityUK’s ‘Enabling growth across the UK 2024’ report shows that financial and related professional services employed over 2.4 million people in 2022 – 7.5% of the UK’s total workforce or almost one in every 13 jobs, two thirds based outside London.
In the decade to 2022*, the industry created 354,000 jobs across the UK, with employment growing at an annual average rate of 1.8%. More than half of these jobs were created outside London, with the West Midlands and Northern Ireland seeing the highest average industry employment growth rates of 3.7% and 3.5%, respectively.
The industry’s economic contribution also grew by 11% overall – or £24.6bn – over the same period, with an annual average growth rate of 1.2%. Northern Ireland had the highest growth with a 2.2% annual average rate, followed closely by the North West (2.0%), Wales (1.9%), and the East of England (1.8%). In 2022 alone, the industry contributed £248bn to the UK economy.
Outside London, major financial hubs include Birmingham, Manchester, Edinburgh, Bristol, Glasgow and Leeds, each with over 30,000 of employment in financial and related professional services. Financial services productivity was nearly three times as high as whole-economy productivity in 2023.
The report suggests a set of policy interventions for policymakers at every level to capitalise on this momentum and enable the industry to make an even greater contribution to driving growth. These include: further devolution, improved cross-country connectivity, and comprehensive skills and planning reforms.
Miles Celic, Chief Executive Officer, TheCityUK, said, "With growth the number one priority for policymakers across the country, financial and related professional services must be central to this strategy. This industry is a dynamic force driving the economy, delivering high productivity, well-paid jobs in every region and nation of the UK. And there is more it can do to support growth and jobs. We urge government and devolved leaders to prioritise policies that can unleash that potential."
Minister for Services Gareth Thomas said: “This report demonstrates the strength of the UK’s financial and financial related professional services industry, which contributes an impressive 12% of the UK’s total economic output.
“Our modern Industrial Strategy will back our financial services industry and deliver long-term, stable growth that works for all businesses and workers right across the UK."
The report sets out detailed policy proposals for policymakers to make meaningful changes that will maximise the role of financial and related professional services in driving nationwide growth. These include:
- Planning reform for growth: The government must address resource shortages in local planning authorities, ensure predictability in planning decisions, and streamline the Section 106 agreement process to expedite development projects. Devolved leaders must collaborate with local planning authorities to advance key infrastructure and growth projects.
- Greater consistency in the powers offered to existing local authorities: The government must deliver on its commitment to expand and strengthen the metro mayor model across England. This includes extending the metro mayors and combined authority model, working with mayors to drive major infrastructure projects, and establishing clear structures for interactions between local and national governments. Devolved leaders must prioritise engagement with businesses in their Local Growth Plans and Spatial Frameworks, and develop an industry-specific strategy for financial and related professional services to drive economic growth.
- Creating an employer-led skills system: The government must deliver its promise to reform the Apprenticeship Levy by providing greater flexibility and transitioning to a broader Growth and Skills Levy. This will better equip industry to re-skill employees for the jobs of the future, particularly those related to the green transition. Devolved leaders should leverage their convening power to engage a broad network of employers in shaping skills strategies and align skills plans with economic growth objectives.
- Strengthening connectivity: The government should focus on improving connectivity between centres of economic growth and support devolved and regional leaders with the expertise and opportunities needed to attract investment, empowering them to support growth in partnership with industry. Devolved leaders are encouraged to establish a single access point for business services and collaborate with the central government to enhance transport connectivity and work together to improve digital infrastructure.
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Notes to editors
This report reflects data available as of 30 June 2024.
*2022 is the latest available data.
In this year’s report, TheCityUK has also included for the first time new data on:
- Industry employment by Combined Authority
- The number of financial and related professional services firms in each region