A new report has shed some light on the boost financial services provide to the UK economy.
The findings, by financial services advocacy group TheCityUK, highlighted the £281 billion boost to the country in 2024. Whether you are investment planning in Cheshire or the wider economy, financial services nationwide have been firmly established as a driver of growth in the years since the UK left the European Union.
According to the data, productivity levels in this sector are almost three times as high as the general economy as a whole. UK financial services attracted a cumulative total of £51.2 billion in foreign direct investment in the four years leading up to 2024, largely driven by a spike in 2020.
Despite the pressures of Brexit, the pandemic and the more recent global uncertainty over tariffs, the sector is still crucial to the economy, managing trillions of pounds in City of London assets and accounting for approximately 2.5 million jobs. These are primarily in London, but also in regions such as the Midlands and the North West.
According to chief economist Anjalika Bardalai, financial services are a powerful magnet for global investment, adapting rapidly to shifting patterns in demand. She added that at a time of policy upheaval, acknowledging the industry’s significant contribution is a necessary foundation for pioneering strategies to maintain its competitiveness. The Government is similarly keen for the sector to remain strong as a primary driver of UK prosperity, with public finances heavily reliant on financial services for generating revenue for NHS, defence and other spending.
