Huxley Associates International: Why are UK banking jobs moving out of London?

Huxley Associates International Why are UK banking jobs moving out of London

Banking jobs are down in the UK. With every month comes a headline announcing the latest swathe of job cuts by a UK bank: RBS to cut almost 450 investment banking jobs in the UK (March 2016); Lloyds Banking Group to cut 1,755 jobs and close 29 branches (February 2016), Barclays to axe 1,200 jobs worldwide (January 2016).

Despite this overall downward trend, regionally, jobs in the banking sector are increasing. Between 2013 and 2014, the number of banking jobs decreased by 4,848 in London but increased outside of London by 2,450. Since 2012, the difference is even more apparent: the number of banking jobs decreased by 4,497 in London but increased outside of London by 5,251. In 2014, 77 local authorities in Britain had faster growth in banking jobs than anywhere in London.

“The nearshore model is gaining increasing focus by a lot of banks,” says Sachin Gupta, Business Manager, Huxley Banking & Finance. “Companies have identified that there is a definite talent pool outside of the capital and are taking advantage of that.”

According to the BBA report, there are several major cities outside of London that are banking workforce hubs. Birmingham’s banking cluster is a vivid example of this, but far from the only one, says the report. In addition to Birmingham, in Manchester, Leeds, Bristol and Edinburgh the concentration of banking jobs is also significantly higher than the national average: banking jobs account for 1.7% of total employment in Great Britain, whereas in these cities such jobs range from 2.2% to 6.5%.