For all the gloom around the impact of Brexit on the City of London, the latest survey of Europe’s top destinations for foreign direct investment (FDI) in financial services is a reminder of the UK’s continuing heft in the sector.
Britain landed 76 financial service projects last year, up 17 percent from the previous year, despite the economic downturn and political instability in Westminster, an Ernst & Young analysis said.
It means the UK secured 26 percent of all European financial services FDI projects.
The rise was thanks to an increase in US investment, with the UK home to 21 US-backed projects — up a quarter year-on-year.
Even in challenging times, investors see the UK “as the most attractive European financial services market,” said Anna Anthony, UK financial services managing partner at Ernst & Young.
The industry needs to work with the government to continue to boost the UK’s appeals through investment in programs such as boosting social mobility and upskilling local talent.
France, which recorded a 25 percent fall in the number of projects last year, came in second at 45. Germany and Spain followed with 31 each.
The Ernst & Young results come even as a growing chorus of executives criticize the UK’s business environment. Last month, Revolut’s cofounders launched a blistering attack on the UK as a place to run a business, saying they would not consider listing in London.
By contrast, an accompanying survey of executives across banking, insurance, wealth and asset management, and fintech found they expected the UK to retain or improve its level of financial services attractiveness over the next three years, according to Ernst & Young.
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