UK Edition
City firms are bullish about London’s future as a global finance hub amid growing hopes there will be a post-Brexit bonfire of red tape, according to a new report.
More than two-thirds of financial institutions believe London will not be toppled as a result of leaving the European Union, according to an annual survey of bosses by Lloyds.
Meanwhile, almost half of respondents think that UK financial services’ competitiveness will improve as Britain ditches Brussels regulations in favour of its own model.
The results suggest growing optimism over the country’s post-Brexit freedom, despite warnings before the referendum campaign that a Leave victory would prove disastrous for the Square Mile and destroy 232,000 jobs.
Adrian Walkling, head of financial services at Lloyds’ commercial banking arm, said: “This year’s survey emphasises the belief in London as a global centre for trade and finance as firms anticipate and adapt to the new regulatory environment.
“The benefit of this will resonate beyond the capital, having a positive impact on financial services firms and the communities they serve across the country.”
The analysis also revealed bullishness about the UK economy.
Respondents, which include major banks, asset and wealth management firms, insurers and intermediaries, are more confident about the country’s economic prospects than they were 12 months ago.
Nine in 10 believe growth will improve next year and almost a third think Britain’s economy will fare best out of all G7 nations.
Mr Walkling added: “Financial institutions’ confidence is on the rise as they emerge from a challenging 12 months. Following extensive investment in digitisation over the past decade, our sector was well-positioned to endure the Covid-19 pandemic, but firms still had to adapt quickly to support their customers.
“They did this by drawing on the determination of their people and the spirit of innovation that has made UK financial services world-leading. I’m confident financial services will remain a driver of our prosperity and opportunity as the recovery from the pandemic enters a new phase.”