Financial services bosses back the City to remain Europe’s hub after Brexit
The vast majority of global financial services bosses believe London will remain at the pinnacle of the European industry after Brexit in spite of widespread fears that leaving the EU will dent the UK economy, according to a survey of bosses at big firms.
Some 88 per cent of the more than 100 senior leaders surveyed by Lloyds Bank in data published today said that they believe the UK will remain the most prominent hub for financial services even after the UK leaves the EU.
The survey’s findings paint a portrait of businesses concerned that Brexit will have negative economic effects, while also backing the City to remain resilient.
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Catherine McGuinness, policy chair at the City of London Corporation, said the research “reaffirms the UK’s position as a preeminent global financial hub – Brexit or otherwise.”
However, she added that continued uncertainty over future plans “highlights the urgent need to secure an agreement on future trade arrangements based on mutual market access.”
Brexit remains the biggest single risk on the horizon for the bosses, with more than half the firms surveyed saying it was a significant concern.
UK economic growth will continue to struggle at the bottom of the G7 league table in 2018, the respondents said, with only four per cent predicting it will outperform the average of the largest advanced economies in the world.
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Yet the gloom on the economic front – which reflects consensus forecasts from economists – is tempered by a belief from the majority of firms that revenues will continue to rise and that job moves will be limited.
City of London Lord Mayor Charles Bowman said that any Brexit job losses will be more offset by innovation in the capital’s fintech sector.
“We’ve created something and stolen a march on global competition,” he told the Sunday Times.
Robina Barker Bennett, head of financial institutions at Lloyds, said there is “an unmistakable confidence” that the City will retain its position as Europe’s top financial hub.
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She added: “Despite the worries about growth prospects; the lack of clarity about the final deal; and the speculation about the future of the financial services industry, the sector is upbeat about its growth prospects and long-term future.”
Just over half of the executives surveyed said they are not moving operations abroad after Brexit, although a significant minority – 26 per cent, up from only 13 per cent in 2016 – will do so.
Nevertheless, 57 per cent of those firms which will move jobs said it would be less than a tenth of their workforce in findings which tally with City estimates that the loss of London jobs caused by Brexit will be much smaller than initially feared.
Read more: IFS: Brexit job losses for UK would have “severe” consequences for Budget