At TheCityUK, we champion the full strength and diversity of the UK’s financial and related professional services industry – an ecosystem that extends well beyond London, right across the regions and nations. From Birmingham, Cardiff and Bristol to Leeds, Manchester, Edinburgh and Belfast, our work recognises the critical role these financial hubs play in driving economic growth and competitiveness. An equally important part of this ‘British family’ lies just across the Channel: The Crown Dependencies of Jersey and Guernsey.
We have recently partnered with Guernsey Finance and Jersey Finance on a new paper examining the scale of their contribution to the UK economy. The findings reaffirm what many in the industry have long known: the Channel Islands are not peripheral players, but essential contributors to the UK’s economic resilience, competitiveness and global reach.
Both jurisdictions operate mature, well-regulated environments that uphold globally recognised standards of supervision and governance. These frameworks give investors’ confidence and act as a stable bridge between global markets and the UK, helping to channel capital into key national priority areas such as infrastructure, housing, innovation, the energy transition and other engines of sustainable economic growth.
The scale of this contribution is significant:
- Guernsey’s investment sector oversees £1trn in assets, and Guernsey facilitates £58bn of regulated international capital flows into the UK economy, benefiting all four nations and regions across Great Britain, with a further £23bn expected over this parliamentary term.
- Investments via Guernsey-domiciled funds span key asset classes, including private equity (£26bn), property (£11bn) and infrastructure (£8bn).
- Jersey serves as a gateway for almost £500bn of foreign investment.
- This investment supports 951,000 jobs and £62bn in UK GDP.
Individually, Jersey and Guernsey make considerable contributions. Together, their complementary strengths deepen the UK’s access to international capital and reinforce the overall resilience of our financial ecosystem. Shared commitments to political and fiscal stability, high regulatory standards, transparency, and responsible governance mean that these contributions are not just economically valuable, but also sustainable and dependable.
Their partnership with the UK extends well beyond capital flows. Both islands are recognised for regulatory excellence, leadership in sustainable finance and strong support for UK-based professional services, including legal, accounting and advisory firms. They also maintain long-term collaboration with policymakers across Westminster and Whitehall focusing on competitiveness, capital markets policy and cross-border alignment.
As our paper highlights, the UK’s economic strength is greatest when its full ecosystem - London, the national and regional hubs and the Crown Dependencies - works in partnership. This collective capability ensures that the UK remains an open, globally connected financial centre, resilient amid shifting global dynamics, regulatory evolution and intensifying international competition.
The Channel Islands are integral to this success. Their contribution to the UK’s investment pipeline, global positioning and longterm economic resilience is both unique and increasingly important. As the UK looks to future growth, enhanced competitiveness and continued global leadership, this partnership will matter even more.
