Finance sector grows faster than London’s

● Rate of jobs growth at 6.6% higher than London at 5%, according to report

Scotland’s financial services sector is growing at a faster rate than London’s, with 10,000 posts added in the past year.

The number of people employed in the industry north of the Border has grown by 6.6 per cent from 151,000 to 161,000, a new report today reveals.

That compares with the UK’S largest financial centre, London, which saw its overall headcount grow by 5 per cent, according to research by Thecityuk.

The findings come despite fears of a Brexit-related jobs exodus.

Scotland’s financial services sector is outstripping London’s when it comes to jobs growth, after 10,000 posts were added in the past year.

The number of people employed in the financial and related professional services industry north of the Border grow by 6.6 per cent from 151,000 to 161,000 in the last year, a new report today reveals.

That compares with London – the UK’S largest financial centre – which saw its overall headcount grow by 5 per cent, according to the latest research by industry body Thecityuk.

Financial and related professional services account for about 9 per cent of the Scottish economy, making the largest area contribution outside London.

The study noted Scotland’s “particular strengths in banking, life assurance and pensions”. The country is also a renowned “centre of excellence” in investment management and data science, and has an emerging financial technology (fintech) community.

News of the increasing industry headcounts on both sides of the Border comes despite fears of a jobs exodus in the wake of the vote to leave the European Union.

Miles Celic, chief executive of Thecityuk, said: “One in every 14 British jobs is in financial and related professional services. These ‘City jobs’ aren’t just confined to London, they’re in financial clusters all across the UK, in cities such as Bristol, Cardiff, Edinburgh and Manchester.

“The ongoing strength of our financial centres across the country underlines what a national success story this industry is. Building on this success will need a supportive business environment and greater emphasis on local expertise and local decision making. A one-size-fitsall approach simply won’t be good enough.”

First Minister Nicola Stur geon said: “This report reinforces Scotland’s position as the UK’S leading financial services hub outside London.

“Scotland offers a combination of a well-established financial services sector and ongoing innovation, with many global companies already based here.”

Lindsay Gardiner, Pwc’s regional chairman in Scotland, added: “The figures highlight the resilience of the financial sector as it continues to recover from the 2008 banking crisis while navigating current challenges in the shape of weak economic growth and Brexit.”

The report shows that while London remains the UK’S largest financial centre, the industry is a “national asset”, making a significant economic contribution to regional and national economies.

In Scotland this amounted to £12 billion in 2016 and collectively across the UK made a contribution of £174bn, with two thirds of the 2.3 million industry jobs based outside London. The report makes a series of recommendations to enhance the industry’s role in the broader economy.