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TheCityUK has undertaken some important research into UK competitiveness in financial and related professional services. The research, which was undertaken with analytical support from McKinsey & Company, takes a unique fact-based approach to assessing 147 actual location decisions by global financial services firms between 2006 and 2012.
The findings show an ‘amber warning light’ flashing over the attractiveness of the UK as a place to set up and grow a financial services business. Key findings include:
- 56% (83 out of 147) of the location decisions analysed resulted in a negative outcome for the UK
- Around one-quarter of the total jobs lost in the financial services sector since the peak were due to factors relating to the competitiveness of the UK
- Offshoring has been a key driver of job losses, although regional UK centres have attracted investment partially off-setting this (near-shoring).
The study concluded that the economic environment for financial services is challenging, and as a result marginal investment decisions, which would not previously have been considered in location decisions, have created reasons for leaving the UK.
With the industry and economy facing severe headwinds, we have recommended that Government sets out an emphatic vision for the future success of financial and related professional services in the UK, to maximise the positive impact of policy on the jobs and growth agenda.
The report highlights those areas where the UK Government can take practical steps to move the UK into a more competitive position and further enhance the near-shoring strategy which is showing positive results.
Please follow this link to download the full report.
