In 2016 the Global Financial Centres Index placed London once again as the leading global financial centre, ahead of New-York, Singapore, Hong-Kong and Tokyo. This index factors in a number of dimensions: business environment, financial sector development, infrastructure, human capital as well as reputation. This highlights the prominent role played by London in the single market for financial services, since it operates as a hub for the whole Union.
The place of London as a major financial centre largely predates the single market and relies on a dynamic business environment, the predictability of the British legal system, the worldwide use of English as language for business, and the attractiveness of a cosmopolitan city. London managed to attract a critical mass of expertise in financial and other related professional services, and benefitted from the development of the single market or financial services in the nineties and more recently from the introduction of the single currency in continental Europe (Center for European Reform).
Today, half of the world’s financial firms have based their European headquarters in London, and more than 1 million people work in the financial sector in the UK: banking activities, insurance and reinsurance, asset management and market infrastructures. With related professional services (accounting, legal, advisory...), the total amount reaches 2.2 million people. The financial sector earned about GBP 200 billion (11% of GDP) in total revenues (turnover) in 2015, half of which relates to domestic activities, while the other half includes international and wholesale business related with the EU and other foreign markets. This represents about 24% of all EU financial services, and generates about GBP 60 - 67 billion (3.5% of GDP) in UK taxes each year.
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