The UK-based monetary and associated skilled providers trade rebounded strongly final 12 months regardless of the continued challenges following the worldwide pandemic, in accordance with the newest annual ‘UK Key Info’ report from TheCityUK .
The trade’s financial output (GVA) confirmed year-on-year progress of 8% in 2021 following a contraction of 0.6% in 2020. Complete trade output in 2021 reached £261bn, up by £19bn year-on-year, accounting for 12% of complete UK financial output, up from 10% in 2020.
Business employment additionally remained comparatively resilient all through the pandemic. Regardless of a 0.5% fall in employment in 2020 (the newest knowledge obtainable), over 2.2 million folks – round one in each 14 UK jobs – are employed in monetary and associated skilled providers in high-skill, high-value jobs, with two-thirds of employees based mostly outdoors London, in cities and cities proper throughout the UK.
The monetary providers sector stays one of the productive within the UK financial system, with the productiveness of the sector greater than twice as excessive as whole-economy productiveness by way of output per hour. Output per hour for the monetary providers sector was £83.30 in 2020, in contrast with whole-economy productiveness of £39.
Anjalika Bardalai, Chief Economist and Head of Analysis, TheCityUK, mentioned, “The UK’s monetary and associated skilled providers trade has weathered the challenges of the pandemic interval effectively. Its relative stability displays the important enabling position the trade has throughout the wider financial system, and the persevering with robust demand for its services and products throughout the UK and past. This attribute signifies that it’s well-placed to resist the myriad financial and geopolitical challenges the approaching 12 months is about to ship, and—significantly given its excessive productiveness, with output per hour greater than twice as excessive as within the financial system as an entire—to proceed to assist UK prospects and companies to assist them maximise their very own output and productiveness.”
UK monetary providers proceed to be a significant supply of UK tax receipts, contributing £75.6bn in tax income in 2019/20. This accounted for 10.1% of complete UK tax receipts that 12 months, roughly equal to complete public spending on training.
On the peak of the financial pressure from the pandemic in 2020, the monetary providers sector continued to draw International Direct Funding (FDI) with inflows of £19.7bn in 2020, representing 57.6% of complete inward FDI. Over the previous 4 years (2017-2020), cumulative inflows of monetary providers FDI totalled £47.3bn, equal to 21.8% of total FDI, constituting the sector that almost all attracted FDI.