The City of London reported on Tuesday that although the UK is still a top travel destination, foreign investment in the country’s financial and professional services will have dropped to one billion pounds ($1.25 billion) in 2023.
Laptops 1000Capital markets present fierce rivalry for the industry, especially for listings from New York and, after Brexit, EU financial hubs like Paris and Amsterdam.
To minimize disruption from Britain’s exit from the bloc, banks, insurers, and asset managers established new post-Brexit centres in the European Union, resulting in the loss of about 7,000 jobs in the UK.
The City of London, which is in charge of overseeing Britain’s primary financial hub, claims that the one billion pounds in 2023 was only half of the “exceptional” two billion pounds of inward investment in the industry in 2022 due to a more difficult economic environment.
Out of 222 projects that generated approximately 7,000 jobs in 2023, the United States accounted for over 40% of the funding. This made it the greatest source of funding.
According to the City, investment management companies were the main forces behind inbound investment projects and accounted for 227 million pounds, or one-third of all investments made last year.
To boost inward investment, according to Chris Hayward, chair of the City of London policy committee, a more calculated strategy is required.
“This starts with creating a hub to showcase our offer to the world, alongside a strong financial services strategy,” Hayward stated.
