Financial services feel the squeeze

THE pandemic and Brexit deadline have caused a slump in the number of foreign firms planning to invest in the UK’s financial services industry.

Only 10pc of global financial services companies plan to establish or expand operations in Britain in the next year, down from 45pc in April, according to accountancy firm EY.

Overseas investors are increasingly focusing on the digital sector, real estate and construction and healthcare.

Despite the downturn in short-term sentiment, 53pc of firms surveyed now expect the UK to be more attractive for foreign investment in three years’ time, up from 40pc earlier in the year.

Douglas McWilliams, of the Centre for Economics and Business Research, suggested that pessimism surrounding the UK’s postBrexit prospects may be being overdone.