Chris Cummings, Chief Executive of TheCityUK comments on Z/Yen's latest Global Financial Centres Index.
"The latest Z/Yen report indicates that London has been knocked off the top spot and is now ranked 2nd in the International Financial Centres league table. This is largely due to the increasing appeal of growing International Financial Centres such as Hong Kong; and it has to be a strong wake-up call for Europe's policymakers. London is Europe's financial centre and is hugely important to the continent's ability to finance growth and create jobs by attracting global investors.
"The UK benefits greatly from London's position as one of the world's leading international financial centres. The sector contributed £65bn in taxes to the Treasury just last year and it employs over 2m people, two-thirds of who are based outside London; creating high value jobs across the country. More than a third of the taxes paid by the sector come direct from highly mobile firms who have been attracted to the UK as a business base but who could swiftly move their operations if the UK becomes less attractive.
"The UK needs to vigorously engage with other EU member states now to make Europe a more competitive place to do business. The centre piece of this work must be policies that are focused on stimulating sustainable economic growth and creating high value jobs.
"While one-third of the UK's financial exports go to EU countries two-thirds are to other markets. We need to be able to compete globally and continue to attract foreign direct investment if the UK is to prosper. Last year the UK's export earnings from financial and related professional services were £61bn, more than all other exporting earning sectors combined. This is why the UK cannot afford to drop down the global rankings as financial services help offset the deficit in goods exports and means the UK can pay its way in the world.
"These results lay rest to the fiction that firms will leave London to head for other EU member states. The truth is that if they do less in the UK it is other parts of the world who benefit. It is now obvious that a strong London means a strong EU better able to finance the needs of businesses across the continent."