Banking jobs are shifting from London to smaller, regional cities, according to a new report from the British Bankers’ Association (BBA).
According to the banking industry group, while the industry has shrunk in the capital in the past two years, banking jobs are booming in such places as Tunbridge Wells, South Gloucestershire, Chelmsford and North Tyneside.
The BBA recorded a remarkable 1,016 per cent increase in banking jobs in Tunbridge Wells between 2013 and 2014, a 93 per cent jump in South Gloucestershire, a 59 per cent leap in Chelmsford and a 51 per cent uptick in North Tyneside – compared with just eight per cent growth in the Square Mile.
According to the latest official figures, the banking industry accounts for 510,630 jobs across Britain, or 1.7 per cent of the country’s workforce, with approximately one quarter of the jobs coming from wholesale banking.
While the BBA said that the overall number of banking jobs across the country declined by 2,398, or 0.5 per cent, between 2013 and 2014, the number increased outside the capital by 2,450.
The number of jobs in London decreased by 4,848 over the same period.
The BBA said that the shifts were “a reflection of structural changes in the industry and also issues affecting the UK’s competitiveness, such as regulation and taxation”.
Britain’s biggest banks have previously pointed to compliance with ringfencing and other regulatory requirements, as well as efforts to cut costs, to explain moving elements of their businesses outside London.
Chief executive of the BBA Anthony Browne said: “These figures show that a strong banking industry benefits the whole country, not just the capital.”
He continued: “The data highlight that banks are increasingly creating jobs and apprenticeships right across Britain as part of a shift away from London.”
Browne noted that the “industry is playing a crucial role in helping young people to get their foot on the careers ladder and providing highly skilled jobs for local communities.”