Key facts
- Britain's financial industry has shown resilience post-Brexit.
- Employment in the UK financial sector is near all-time highs.
- The UK financial sector has achieved record profits.
- Britain's global dominance in financial services has been eroded.
- The UK is seen as less attractive for some investors post-Brexit.
- Areas that voted to leave the EU have seen a faster relative increase in foreign workers since the 2016 referendum.
- Brexit-voting areas have become relatively more deprived since the 2016 referendum.
The United Kingdom's financial sector is navigating the post-Brexit environment with notable resilience, defying earlier predictions of severe disruption. Employment within the industry remains close to its highest levels, and the sector has achieved record profits. Despite these positive indicators, the global preeminence of the UK's financial services has been diminished. Furthermore, the country is now viewed as a less attractive destination for some international investors.
In parallel, an analysis of government data reveals a distinct trend in areas that voted to leave the European Union during the 2016 referendum. These regions have experienced a faster relative increase in the number of foreign workers since the referendum compared to areas that voted to remain. This demographic shift has occurred alongside a relative increase in deprivation within these same Brexit-voting areas over the same period.