Research recognises Scotland as one of Europe’s leading financial centres

The latest research from TheCityUK shows how Scotland’s financial and related professional services industry is a critical driving force of jobs and economic growth across the nation.

• Financial and related professional services account for 10% of Scotland’s economy.

• The industry employed 149,000 people over the decade to 2022*, representing 5.7% of the nation’s overall employment.

• TheCityUK urges more action and commitments by policymakers at all levels on improving connectivity and driving skills reforms to spur growth.

Glasgow and Edinburgh make up a sizeable proportion of Scotland’s overall financial and related professional services industry, employing 34,800 and 57,290 people respectively. Glasgow has particular strengths in insurance, asset management, and legal services, while Edinburgh is a leader in banking and investment management. Beyond these cities, Fife and Aberdeen are also recognised as major financial hubs, each employing over 5,000 people.

Sandy Begbie CBE, Chief Executive, Scottish Financial Enterprise, said: “Scotland’s world-class financial and related professional services industry is the engine of growth in the Scottish economy. The latest TheCityUK figures underline our vast contribution, with the number of jobs in the sector increasing to 149,000 and the value we generate for the Scottish economy increasing by around half a billion to £14.76bn, up from 9.6% to 10% of national GVA. 

“With a clear growth strategy in place, we are confident that our economic contribution will develop even further in the years ahead as we take advantage of new opportunities for growth in areas like green and sustainable finance, fintech, and emerging technologies like artificial intelligence. The strength of our ecosystem and our distinctive capability as a regional technology hub have helped us to attract record amounts of inward investment from some of the largest global financial institutions.

“It’s also clear that we are operating in an increasingly competitive marketplace, both domestically and internationally, leaving no room for complacency. We will continue working closely with the Scottish and UK Governments, making the case for a strong business environment and policies that put financial services at the heart of Scotland’s economic growth agenda.”

Miles Celic, Chief Executive Officer, TheCityUK, said: "With growth the number one priority for policymakers across the country, financial and related professional services must be central to this strategy. This industry is a dynamic force driving in Scotland, delivering high productivity and well-paid jobs. And there is more it can do to support growth and jobs. We urge leaders at all levels to prioritise policies that can unleash that potential."

The report underlines the industry’s significant contribution to national and regional economies. In the decade to 2022, the industry created 354,000 jobs across the UK, with more than half of these jobs created outside London. In 2022, over 2.4 million people were employed in the industry across the UK – almost one in every 13 jobs, with two thirds of those based outside London.

The report also sets out detailed policy proposals that would maximise the role of financial and related professional services in driving nationwide growth. These include:

• Planning reform for growth: The government must address resource shortages in local planning authorities, create greater certainty in the planning system, and streamline the Section 106 agreement process to expedite development projects.

  Local leaders must collaborate with the relevant planning authorities and central government to advance key infrastructure and growth projects.

• Greater consistency in the powers offered to existing local authorities: National governments should seek to expand and strengthen the metro mayor model currently operating in many parts of England. This includes extending the metro mayors and combined authority model, working with mayors to drive major infrastructure projects, and establishing clear structures for interactions between governments at all levels.

  Local leaders must prioritise engagement with businesses in their plans for growth, and develop an industry-specific strategy for financial and related professional services to drive economic growth.

• Creating an employer-led skills system: The UK government must deliver its promise to reform the Apprenticeship Levy by providing greater flexibility and transitioning to a broader Growth and Skills Levy. This will better equip industry to re-skill employees for the jobs of the future, particularly those related to the green transition.

  Local leaders should leverage their convening power to engage a broad network of employers in shaping skills strategies and align skills plans with economic growth objectives.

• Strengthening connectivity: The UK government should focus on improving connectivity between centres of economic growth and support devolved and regional leaders with the expertise and opportunities needed to attract investment, empowering them to support growth in partnership with industry.

  Local leaders are encouraged to establish a single access point for business services and collaborate with the central government to enhance transport connectivity and work together to improve digital infrastructure.