Foreign investment in Britain’s financial and professional services dropped to one billion pounds in 2023, according to the City of London. This is half of the previous year’s investment, as competition from global financial hubs like New York, Paris, and Amsterdam intensifies.
Following Brexit, around 7,000 jobs have moved from the UK to new European Union hubs to avoid disruptions. The United States remains the largest source of investment, contributing over 40% of the total funds in 2023. Investment management firms were the leading drivers of inward investment projects, accounting for a third of all investments.
City of London policy chair Chris Hayward emphasized the need for a more strategic approach to attract more investment. “Creating a hub to showcase our offerings to the world, along with a strong financial services strategy, is crucial,” said Hayward.
Overall, the UK continues to be a top global destination for foreign investment, despite the challenges faced by the financial sector.