Scotland retains top spot for financial services investment outside London

Peter A Walker
·3-min read

Scotland continues to attract the highest number of UK financial services foreign direct investment (FDI) projects outside of London, according to the latest EY Scotland Attractiveness Survey for Financial Services.

Of the nine financial services projects recorded in Scotland, five were in Edinburgh, two were in Glasgow, with one each for Motherwell and Dufftown.

Edinburgh is again the top UK city outside London for securing financial services FDI projects. Of the five UK financial services FDI projects that created more than 150 jobs in 2023, two of those were located in Glasgow.

London remains the leading European city for FDI in 2023, a position retained for the last decade - attracting 81 projects - with Edinburgh also in the European top 10, at ninth place.

Investor sentiment finds that 26% of financial services investors looking to establish or expand operations in the UK over the next year would look to Scotland – up from 14% in 2023 and 12% in 2022.

Edinburgh (25%) is the top city outside of London (37%) for investors looking to establish or expand operations in the UK, followed by Cardiff (21%).

Sue Dawe, EY Scotland managing partner for financial services, said: “These results underscore the enduring strength and confidence that investors continue to place in our financial sector: where traditional institutions and emerging FinTech disruptors contribute to a vibrant, dynamic and forward-looking financial ecosystem.

“Financial services continues to be a pillar of the Scottish and UK economy – and is only increasing its position as pivotal player on the international stage.

“Industry, government and education sectors need to continue collaborating to produce and retain world-class talent if we’re to harness cutting-edge technological advancements which create a competitive environment for further investment and growth.”

Scottish Financial Enterprise chief executive Sandy Begbie added: “We believe there is even greater potential waiting to be unleashed. Our sector’s ambitious growth strategy aims to add an additional £4bn to £7bn to the Scottish economy over the next five years.

“These results also show that we are operating in an increasingly competitive marketplace and there is no room for complacency.

“It’s vital that industry and government work closely and constructively to further build upon our long-standing reputation as a good place to do business, attract further inward investment and create new high value jobs that benefit everyone in Scotland.”

The UK continues to be Europe’s most attractive location for FDI into financial services – and has accelerated its lead over other European markets.

The UK attracted 108 financial services projects in 2023 - up from 76 projects in 2022 - and has extended its lead over second-placed France, which secured 39 projects in 2023, down from 45 in 2022. Germany came in third place, recording 38 financial services investment projects in 2023 – seven more than in 2022.

Alongside the expansion of existing projects, the number of new financial services projects across Europe and the UK reached its highest level since 2019, rising to 233 projects in 2023 from 215 projects in 2022.

The UK recorded 85 new financial services projects in 2023, representing a 25% increase from the 68 projects in 2022, and resulting in the UK market share of new financial services projects rising from 32% in 2022 to 36% in 2023 – the highest level in a decade.

The largest source of financial services investment into Europe in 2023 was again the US, with projects up 15%, from 79 in 2022 to 91 in 2023. This was the highest proportion of US-backed projects in the last decade and represented 28% of all financial projects into Europe.

The UK was again the leading recipient of US investment, recording an 81% increase, from 21 projects in 2022 to 38 projects in 2023.

Don't miss the latest headlines with our twice-daily newsletter - sign up here for free.

  • Up next
  • Up next
  • Up next
  • Up next

Latest stories

  • Germany couldn’t afford to bail France out even if it wanted to

    The “nein”, “non” or just a plain old “no way” has already been uttered. As France prepares for its most significant election in at least a decade, with its leading parties committed to increasing the government’s already lavish spending, Christian Lindner, the German finance minister, has made one point clear: France is not going to get a bailout, and certainly not from its close neighbours.

  • What to do now to shield your money from Labour taxes

    With the countdown to the general election now in its final week, Labour has continued to do little to answer questions or quell concerns about its tax plans should it win power.

  • France’s hard-Right wants to cut the EU’s budget – Brussels should be worried

    Jordan Bardella, the fresh-faced 28-year-old who could be the first French prime minister for Marine Le Pen’s hard-Right National Rally party, has designs on EU cash.

  • The Netherlands stung savers with 100 per cent tax rates – and now owes them billions

    The Netherlands is expected to pay billions of pounds in compensation to taxpayers after a divisive levy on investments and second homes was shot down by the Dutch Supreme Court.

  • India Plans ‘Historic Steps’ in Budget Under New Government

    (Bloomberg) -- Sign up for the India Edition newsletter by Menaka Doshi – an insider's guide to the emerging economic powerhouse, and the billionaires and businesses behind its rise, delivered weekly.Most Read from BloombergSupreme Court Poised to Allow Emergency Abortions in IdahoSpaceX Tender Offer Said to Value Company at Record $210 BillionSupreme Court Ends OxyContin Settlement, Cracking Sackler ShieldChina’s Finance Elite Face $400,000 Pay Cap, Bonus ClawbacksBolivia’s President Arce Swear

  • The North Sea could be finished under Labour

    David Latin is losing his patience. The chairman of Serica Energy has worked in the oil and gas industry for more than 30 years. He once ran a company that drilled in a war zone.

  • UK economy grows more than previously estimated

    UK tops G7 chart for strongest quarter-on-quarter economic growth, figures published by the Office for National Statistics on Friday show.

  • Bank of England likely to cut rates in August, former MPC member says

    The Bank of England is likely to cut interest rates soon, "probably in August", as long as inflation and wage data align with the Monetary Policy Committee's (MPC) May forecasts, a former MPC member said on Thursday. "They have clearly signalled they are willing to cut soon if data are okay," Michael Saunders, an MPC member at the Bank of England (BoE) between 2016 and 2022, told the Reuters Global Markets Forum (GMF).

  • Fed’s Favored Inflation Gauge Slows, Supporting Case for Cut

    (Bloomberg) -- The Federal Reserve’s preferred measure of underlying US inflation decelerated in May, bolstering the case for lower interest rates later this year.Most Read from BloombergGavin Newsom Is Ready for the Biden EmergencyThe Question on Democrats’ Minds: How to Replace Biden?Biden’s Disastrous Debate Accelerates Doubts Over CandidacySupreme Court Overturns Chevron Rule in Blow to Agency Power‘I Was Afraid of This’: Biden Debate Debacle Rocks US AlliesAt the same time, household spendi

  • UK house sales tick up for fifth month in a row

    An estimated 91,290 sales took place in May, which is 17% higher than in May 2023, HM Revenue and Customs said.

  • If Rachel Reeves hikes capital gains tax, she’ll be more in line with Nigel Lawson than Gordon Brown

    Gordon Brown’s reforms to CGT encouraged stock market speculators and private equity asset strippers, while it was the Thatcher government that brought rates into line with income tax.

  • El-Erian Says Slowing Economy Raises Fed Policy-Error Risk

    (Bloomberg) -- Softening in the measure of inflation favored by the Federal Reserve highlights a slowing economy that’s upping the risk of a policy error by the central bank, Mohamed El-Erian said.Most Read from BloombergGavin Newsom Is Ready for the Biden EmergencyBiden’s Disastrous Debate Accelerates Doubts Over CandidacyDemocrats Question Replacing Biden: Here’s How It Could WorkSupreme Court Overturns Chevron Rule in Blow to Agency PowerSupreme Court Backs Jan. 6 Defendant, Curbing Enron Law

  • Labour's North Sea oil and gas policy under attack from industry and activists

    One of the policy areas on which the Labour Party has been very specific during this general election campaign is its approach towards North Sea oil and gas production. The party has been clear that it will raise existing windfall taxes first slapped on North Sea oil and gas producers in 2022 by Rishi Sunak, when he was chancellor, taking the total level of tax from the current 75% to 78%. Ed Miliband, the shadow secretary of state for energy security and net zero, also proposes to take away tax reliefs Mr Sunak put in place alongside the windfall tax, to sugar the pill, which allowed producers to offset their investments in new production against their tax bills.

  • Investors need 'inflation-sensitive assets': Strategist

    Initial jobless claims decreased by 6,000 compared to the previous week, with 233,000 individuals filing for unemployment benefits in the week ending on June 22. Meanwhile, new pending home sales data revealed a 2.1% month-over-month decline, rather than the 0.5% increase economists expected.  US Bank Wealth Management senior investment strategist Tom Hainlin joins Market Domination to give insight into recent economic data and its implications for the labor market and the economy as a whole. On the stock market, Hailin points out, "If we look at just the pillars of growth, inflation and interest rates, even though the data was a little soft, it's still a positive economy. Inflation will get a new reading tomorrow on the PCE...We have positive but decelerating inflation, and Treasury yields have stabilized around four and a quarter here. We think that's a pretty good setup for stocks to price higher at least at the broad index level." Hainlin recommends that investors tilt more toward positive growth and inflation-sensitive assets: "So for the typical diversified investor, they've got some allocations to stocks and bonds and things we call real assets. We would have some of that money out of core bonds and into those US large-cap equities," he adds. For more expert insight and the latest market action, click here to watch this full episode of Market Domination. This post was written by Nicholas Jacobino

  • Economic growth even better than ‘gangbusters’ in ray of hope for Sunak

    Britain’s economy expanded faster than first thought at the start of the year, new figures show, prompting Rishi Sunak to hail “the fastest growth in the G7”.

  • Japan's thrifty households to drag on recovery prospects: Reuters poll

    Growth in Japanese household spending probably slowed to a crawl in May, data will show next week, underscoring weak private consumption which could hamper a sustainable economic recovery. Internal affairs ministry data due next Friday is likely to show that all household spending in May rose 0.1% from a year earlier, following a 0.5% gain the previous month and up for the second straight month, according to a Reuters poll. A slowdown will have far reaching implications as household spending is a key gauge of private consumption and the overall economy.

  • Labour could cut taxes by £16bn, say economists

    Rachel Reeves will be handed a £16bn spending boost from official forecasters if Labour wins the General Election, according to economists.

  • Inflation flatlines in May as pressure on Biden ramps up

    The Federal Reserve’s favorite inflation gauge flatlined in May, according to new federal data released Friday. Prices rose 0 percent in May and were up 2.6 percent from a year ago, according to the Commerce Department’s personal consumption expenditures (PCE) price index. “Core” PCE inflation, which excludes more volatile food and energy prices, was just…

  • $3.4 trillion in individual tax cuts are expiring next year. Biden and Trump would handle it very differently

    Whoever wins the presidency in November will have some especially tough financial choices to make next year.

  • French Inflation Resumes Slowdown Two Days Before Elections

    (Bloomberg) -- French inflation slowed a little — reinforcing the European Central Bank’s decision to begin cutting record-high interest rates and offering an economic bright spot for President Emmanuel Macron two days before elections.Most Read from BloombergGavin Newsom Is Ready for the Biden EmergencyThe Question on Democrats’ Minds: How to Replace Biden?Panicked Emails, Gallows Humor: The Aftermath of Biden's Debate DisasterBiden’s Disastrous Debate Accelerates Doubts Over CandidacySupreme C