The UK is both the leading global financial services centre and the single most internationally focused financial marketplace in the world. An unrivalled concentration of capital and capabilities means that more overseas financial institutions and investors choose to do business in, and with, the UK than any other country.

A springboard for global growth

Hundreds of financial services companies have chosen the UK as a base for operations as their gateway to Europe. Under the risk-based and proportionate regulatory framework overseen by a single regulator, the Financial Services Authority, businesses are given scope to innovate and remain competitive.

The UK financial services industry has an outstanding track record. A wealth of experience and established institutions enable this success, but so too does the business environment. Fair, supportive, flexible, innovative and dynamic, it is critical to the UK’s first choice status. It gives those involved in the industry an automatic advantage.

The ￡33 billion trade surplus in financial services made a substantial contribution to the balance of payments in 2007, up ￡7 billion on 2006. In 2007, financial services accounted for 10.1 per cent of UK GDP, and for 14 per cent of UK GDP when added to associated services such as legal, accounting and management consultancy. Financial services also account for roughly one in 30 jobs in the UK.

In 2007 the UK’s share of global markets speaks volumes: 20 per cent of cross-border bank lending; 34 percent of derivatives turnover; 53 percent of foreign equities turnover and the world’s largest share of global bond trading – a massive 70 per cent.

You can view the full text of 2007/08 financial service report (PDF, 76KB).

The City of London

At the heart of the UK sector is London, home to offices, branches or headquarters of almost every major international bank and financial institution in the world. The City of London provides local government services for the financial and commercial heart of Britain, the 'Square Mile'. The City of London is committed to maintaining and enhancing the status of the Square Mile as the world's leading international financial and business centre through the policies it pursues and the high standards of service it provides.

Its responsibilities also extend far beyond its boundaries: it provides a host of additional facilities for the benefit of the nation, ranging from open spaces such as Epping Forest and Hampstead Heath to the famous Barbican Centre.

In addition to local authority services, the City of London performs a number of very special functions. It runs its own police force and the nation's Central Criminal Court, as well as Guildhall School of Music and Drama. It provides five Thames bridges, the Animal Reception Centre at Heathrow. Many of these services are funded from the City Corporation's own investments on no cost to the public.

Among local authorities the City of London is unique. It combines it ancient traditions and ceremonial function with the role of a modern and efficient local authority, dedicated to the needs of its residents, businesses and the hundreds of thousands of people who come to work in the City every day.

The City's third Global Financial Centres Index (PDF, 1MB) shows London still in top place globally, for more details please visit City of London news releases.