Despite Brexit fears, the UK’s financial sector continues to thrive, reinforcing London’s dominance in Europe.
Despite the predictions of many who feared Brexit would significantly harm the UK’s financial services, London’s status as Europe’s leading financial hub remains unshaken. While some critics predicted a mass exodus of financial institutions from the City, the reality has been quite different. In fact, London’s position at the heart of global finance is not only intact but strengthened.
Almost eight years after the referendum, it’s clear that Brexit has had little detrimental impact on the Square Mile. While some European rivals may attempt to challenge London’s dominance, cities like Frankfurt are far from offering a serious alternative, often best known for their cultural events rather than their financial prowess.
Recent findings from EY highlight that the UK has widened its lead over other European destinations for financial services investment. In 2023, the UK attracted 108 financial services projects, a significant rise from 2022’s 76. In contrast, France, which came second, secured just 39 projects, underscoring London’s enduring appeal.
Anna Anthony, the UK’s financial services managing partner at EY, remarked, “Not only did the UK maintain its lead in the financial services sector, but it also expanded it considerably.”
Of course, challenges remain. The stock market has struggled, and the flotation market is far from active, with the UK’s stock exchange still trailing New York. However, the stock market is only one facet of the City. The insurance and bond markets continue to perform strongly, and despite a rocky period under former Prime Minister Liz Truss, the bond market has remained resilient.
As a technology hub, London still has room for improvement, but it far outpaces its European counterparts, including Paris and Frankfurt. The City of London’s deep-rooted financial infrastructure, diversity of services, and global connectivity ensure its continued dominance.
The City’s financial sector still has a wealth of advantages, and it’s important to frequently recognise its ongoing success.
