The Brexit referendum result caused significant uncertainty over the future of the City of London’s banking and investment activity. Commercial property value fell on the expectation of lower occupancy demand if institutions need to move to Dublin, Paris or Frankfurt. That exodus has so far not materialised and commercial property has retained its value, international banks have committed to London and only a relatively small number of positions relocated so far.
The official triggering of Article 50 failed to dampen the City job market. In Q1 there was a 13% rise in financial services vacancies with over 8000 new jobs announced in the past twelve months.
UK based financial services companies are increasingly looking at keeping their headquarters in London while also expanding operations in other European financial centres. More than one million people work in the UK financial services sector which pays £70bn in total tax revenue per year or 11.5% of all UK tax receipts. Not surprisingly other EU heads of state want to try gaining a slice of this revenue.