London Daily

Focus on the big picture.
Wednesday, Jan 14, 2026

How is Britain's financial services industry faring after Brexit?

How is Britain's financial services industry faring after Brexit?

It’s an industry that, in 2019, contributed nearly $200 billion to the U.K.’s economy, and supported nearly a million jobs.

Britain’s divorce from the European Union was finalized nearly a year and a half ago, but it’s been just six months since the country’s transition out of the bloc was completed.

A number of 11th-hour discussions took place in December to determine how industries, such as fishing, would operate in a post-Brexit environment. But one large sector almost completely left out of those talks? Financial services.

It’s an industry that, in 2019, contributed nearly $200 billion to the U.K.’s economy, and supported nearly a million jobs. What’s more, financial services exports totaled more than $83 billion, more than three times what it imported.

And that’s the crucial reason the sector was left out of trade negotiations, according to London School of Economics professor Iain Begg.

Below is an edited version of his conversation with the BBC’s Victoria Craig on the global edition of “Marketplace Morning Report.”

Iain Begg: Boris Johnson was very keen to get to a trade deal in the sense of the old-fashioned trade in goods to avoid any tariffs [on financial services]. Tariffs don’t apply to financial services, so it’s outside that negotiation. Also, the whole point of Britain leaving the single market and leaving the [European] Customs Union was to regulate the way we wanted to, and not have to depend on getting an agreement with Brussels. The European side said, “Well, no, if if that’s the way you want to play it, then we can’t agree [on] free access to your financial services exporters.”

Victoria Craig: How concerned do you think the City of London should be — that it should have more deals in place or that it should be working on those deals? Because there doesn’t really seem to be much appetite from the EU side to agree to anything at this point.

Begg: One cynical interpretation is that for the EU, getting some of the activity that’s currently in London is seen as winning a prize. If something migrates to Paris, Frankfurt, Amsterdam or Dublin, then the EU countries in question, are going to benefit from this. So they are a no great hurry to deal with something in which the U.K. is a standout, successful exporter of financial and indeed other business services. But the City is maybe looking outside at the same time, saying, the future is the global marketplace, not so much the EU marketplace so we can tolerate losing a bit of our activity in in the EU, provided we can gain it from the rest of the world.

Craig: We have seen some of that early evidence of other cities trying to court that London business. Reports that French President Emmanuel Macron is going to seriously start courting big financial services companies to move to Paris to make that the financial capital. There’s been sort of a lot of rumblings that perhaps Paris or Frankfurt could take London’s crown. Do you see that happening?

Begg: In a word, no. Paris has been trying to steal the City of London’s crown for the best part of 200 years and has yet to succeed. And in any case, although Macron has been able to offer dinners at the Élysée Palace to putative movers from London, it’s Frankfurt, Amsterdam and Dublin, as well as Luxembourg, which tended to have been more successful in attracting the limited amount of financial services activity that’s moving from London. It’s also worth stressing that where London stands out, apart from having the English language, in this light regulatory regime, is in having a background infrastructure of other business services, which feed into financial services, notably law consultancy and accountancy, and no other European center or president can come close to matching that.

Craig: So even though London may be sort of on its back foot now that we’re into this post-Brexit era, it hasn’t necessarily lost anything. Would you categorize it that way?

Begg: Yes. So far, there’s been a trickle of jobs and certain activities, which are very clearly related to the euro, there has been some movement of asset management. But, overall, it’s it’s relatively limited. And I think that’s why the City remains quite relaxed.

Craig: Do you think there will be a point when the City gets a little bit more concerned? Would it just be if it isn’t able to make deals with other countries, like the U.S., or countries in Asia?

Begg: There’s an element of wait and see to the answer to that question, because we don’t quite know how things are moving, not just on the regulatory front, but in technology. Financial services overall is a very fast moving activity. And we see this all the time with new products being invented, new ways of doing business. The word “fintech” will crop up as a as a way of explaining how things are changing. So at this point, the City thinks it’s nimble enough to be able to cope with what gets thrown at it and isn’t that fearful.

Newsletter

Related Articles

0:00
0:00
Close
UK Intensifies Arctic Security Engagement as Trump’s Greenland Rhetoric Fuels Allied Concern
Meghan Markle Could Return to the UK for the First Time in Nearly Four Years If Security Is Secured
Meghan Markle Likely to Return to UK Only if Harry Secures Official Security Cover
UAE Restricts Funding for Emiratis to Study in UK Amid Fears Over Muslim Brotherhood Influence
EU Seeks ‘Farage Clause’ in Brexit Reset Talks to Safeguard Long-Term Agreement Stability
Starmer’s Push to Rally Support for Action Against Elon Musk’s X Faces Setback as Canada Shuns Ban
UK Free School Meals Expansion Faces Political and Budgetary Delays
EU Seeks ‘Farage Clause’ in Brexit Reset Talks With Britain
Germany Hit by Major Airport Strikes Disrupting European Travel
Prince Harry Seeks King Charles’ Support to Open Invictus Games on UK Return
Washington Holds Back as Britain and France Signal Willingness to Deploy Troops in Postwar Ukraine
Elon Musk Accuses UK Government of Suppressing Free Speech as X Faces Potential Ban Over AI-Generated Content
Russia Deploys Hypersonic Missile in Strike on Ukraine
OpenAI and SoftBank Commit One Billion Dollars to Energy and Data Centre Supplier
UK Prime Minister Starmer Reaffirms Support for Danish Sovereignty Over Greenland Amid U.S. Pressure
UK Support Bolsters U.S. Seizure of Russian-Flagged Tanker Marinera in Atlantic Strike on Sanctions Evasion
The Claim That Maduro’s Capture and Trial Violate International Law Is Either Legally Illiterate—or Deliberately Deceptive
UK Data Watchdog Probes Elon Musk’s X Over AI-Generated Grok Images Amid Surge in Non-Consensual Outputs
Prince Harry to Return to UK for Court Hearing Without Plans to Meet King Charles III
UK Confirms Support for US Seizure of Russian-Flagged Oil Tanker in North Atlantic
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
×