As the UK and the world continue to navigate economic challenges, TheCityUK’s latest economic research makes clear the continued impact and significant role UK-based financial and related professional services have in contributing to growth right across the country through job creation, innovation and technological advancements.
The ‘Key facts about UK-based financial and related professional services 2025’ report shows that in 2024, the industry contributed a substantial £281bn to the UK's real gross value added (GVA), representing around £12 in every £100 of economic output. It also generated the largest trade surplus of any sector, which we estimate to have been £114.1bn in 2023.
The industry continues to be a major national employer, with almost 2.5 million people in employment across the country in 2023, accounting for 1 in every 13 workers – a year-on-year increase of 1.8%. Two thirds of these jobs are based outside London in cities such as Birmingham, Edinburgh, Leeds and Manchester, highlighting the industry’s prominence in and impact on regional and national economies.
Financial services sector productivity is almost 2.7 times higher than the level for the whole economy, with an output per hour of £104.10 in 2023, compared with whole economy productivity of £39.30.
Anjalika Bardalai, Chief Economist and Head of Research, TheCityUK, said, "Our latest research highlights the fundamental role that UK-based financial and related professional services play in driving economic growth and supporting businesses and individuals right across the country. In addition to providing core services and products, the industry continues to innovate, continually adapting to meet the needs of its customers, and remaining a strong magnet for international investment.”
Other highlights from the report include:
- Financial services had 1.1 million people in employment, the majority of whom are in banking (377,000) and other financial services (343,000). Insurance provides employment for a further 306,000 and fund management 74,000.
- Related professional services boasted almost 1.4 million people in employment divided among management consultancy (532,000), accountancy (493,000) and legal services (364,000).
- The outstanding amount of loans made available by major banks to UK businesses totalled £541bn as of January 2025, with 33.4% of this amount lent to SMEs.
- UK fund managers invested around £10.9 trillion in financial assets in 2023.
- In 2023, the UK private equity and venture capital sector managed assets totalling around £490bn.
- The UK remains a key destination for financial and related professional services investment. In 2023, the financial services sector attracted £513 million in foreign direct investment (FDI) inflows, and registered cumulative FDI inflows of £51.2bn over the past four years.
- The total tax contribution of the financial and related professional services industry was estimated to be £110.2bn, the highest on record, for the year ending 31 March 2023.
- The UK remains the largest and most developed market in Europe for related professional services. Accounting, management consulting, and legal services contributed £29.4bn, £16bn, and £38bn respectively to the UK's real output in 2024.
- The financial and related professional services industry is also involved in financial education programmes, social initiatives and alternative finance solutions for businesses and clients.
ENDS