Financial Services

Financial services industry in the UK : In 2017, the financial services sector contributed £119 billion to the UK economy, 6.5% of total economic output. The sector was largest in London, where 50% of the sector’s output was generated. 

There is a wide disparity in the financial sector’s contribution to the economy across different regions and countries of the UK. London accounted for half of the total UK financial and insurance sector’s GVA in 2016. The financial sector contributed £58.2 billion to London’s economy in 2016, 14% of London’s total economic output. This is a much higher proportion than in any other part of the UK

The UK financial services sector was the eighth largest in the OECD in 2016 by its proportion of national economic output. Luxembourg’s financial service sector was the largest in the OECD, contributing 27% of the country’s economic output. In Q4 2017, there were 1.1 million jobs in the financial and insurance sector, 3.2% of all jobs in the UK. The number of jobs in the financial services sector has remained broadly steady over the past few decades, but the proportion of jobs in this industry has fallen as the number of jobs in the whole economy has grown.

Exports of UK financial services were worth £61 billion in 2016 and imports were worth £11 billion, so there was a surplus in financial services trade of £51 billion. 44% of financial services exports went to the EU and 39% of financial services imports came from the EU. The sector contributed £27.3 billion in tax in the UK in 2016/17.