Report highlights value of East's financial and professional services hubs

Of the 2.2 million people working in the industry, the majority (1.5 million, or around two-thirds) work outside London, 154,000 of them based in the East of England. In total, the industry represents around 5.7% of the East of England’s employment, and contributed 7.5% or £10.9bn of the region’s Gross Value Added (GVA) in 2015.

TheCityUK’s report – ‘Enabling Growth across the UK’ – shows that while London remains core to the industry’s strong position, major centres like the East of England play a key role in maintaining the UK’s place as the world’s leading financial centre. Overall, 21 towns and cities across the country have in excess of 10,000 people in employment in the industry, including Watford and Norwich.

Around three-quarters of those employed in the industry in Norwich work in the insurance sector. The city is one of the largest general insurance markets outside London. In recent years, the East of England has seen a diversification of its financial sector activities, as a result of policies to promote the development of financial and related professional services in the region. For example, the accounting services sector has become a prominent employer in Watford, generating two-thirds of industry employment in the city. Meanwhile, Cambridge is home to a large concentration of venture capital investors' headquarters.

Miles Celic, Chief Executive of TheCityUK, said: “Our report reinforces the value delivered by financial and related professional services to the whole of the UK economy. Firms from across the world come to Britain to do business, many first putting down roots in London and then expanding their operations across the country, to cities like Watford and Norwich, creating a deeper talent pool of skilled workers that benefits local and national businesses. In turn, strong regional financial centres like those in the East of England, boost the attractiveness of London as a global financial centre. Maintaining this ecosystem is critical to ensuring the UK remains a world-leading place to do business.”

The report also highlights where the UK’s regions and nations may benefit from shifting trends in globalisation, particularly in relation to reverse-offshoring. As cost-differentials between the UK and other lower-cost overseas centres narrow, there is an opportunity to retain or ‘win’ back middle and back office functions. Digitalisation also presents a great opportunity for the industry in centres across the country, bringing new high-skilled jobs. Such jobs have already added £140 billion in value to the economy in new wages over the past 15 years (2).

TheCityUK identifies four key areas for policymakers and other key stakeholders to focus on, working in close partnership with the industry, to maintain the UK’s international competitiveness:

• Rollout intra-and inter-regional partnerships, linking complementary regional clusters and promoting engagement through partnerships and by unlocking investment in infrastructure.
• Identifying and supporting emerging and disruptive innovation and growing specialist industry clusters across the UK in these skills areas.
• Enhancing the UK’s education system and ensuring specialist companies have access to complementary skill sets.
• A stable and predictable business environment, including the adoption of a clear and consistent approach to devolution, to ensure the UK remains open for business from across the world.

  (1) TheCityUK report ‘Financial and related professional services: Enabling growth across the UK,’ offers a snapshot of the financial and related professional services industry’s economic contribution to the regions and nations of the UK. It is based on analysis of historical data and does not attempt to offer a view on the impact of Brexit on the UK regions and nations.
(2) Deloitte, ‘From brawn to brains: The impact of technology on jobs in the UK’, 2015

East of England employment and Gross Value Added (£ Millions):

* Regional total includes towns and cities not listed in tables (i.e. areas with under 5,000 in employment).


About TheCityUK
TheCityUK represents the UK-based financial and related professional services industry. We lobby on its behalf, producing evidence of its importance to the wider national economy. At home in the UK, in the EU and internationally, we seek to influence policy to drive competitiveness, creating jobs and lasting economic growth – www.thecityuk.com

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