Finance industry ‘engine of growth’ for jobs and economy in Scotland – report

Scotland’s financial services industry is “the engine of growth” behind jobs and economic growth across the nation, new research indicates.

A new report from TheCityUK says the country remains one of the leading financial centres in Europe, with around 149,000 people, equating to 5.7% of Scotland’s workforce, employed in the sector.

The report said the sector contributed to 10% of Scotland’s economy in 2022.

Glasgow and Edinburgh were financial and related professional services hotspots, employing 34,800 and 57,290 people respectively, researchers found.

Glasgow specialised in insurance, asset management and legal services, while Edinburgh leads in banking and investment management.

Fife and Aberdeen were also recognised as major financial hubs, with both cities employing around 5,000 people in the industry.

Sandy Begbie, chief executive of Scottish Financial Enterprise (SFE), said: “Scotland’s world-class financial and related professional services industry is the engine of growth in the Scottish economy.

“The latest TheCityUK figures underline our vast contribution, with the number of jobs in the sector increasing to 149,000 and the value we generate for the Scottish economy increasing by around half a billion to £14.76 billion, up from 9.6% to 10% of national GVA (Gross Value Added).

“With a clear growth strategy in place, we are confident that our economic contribution will develop even further in the years ahead as we take advantage of new opportunities for growth in areas like green and sustainable finance, fintech, and emerging technologies like artificial intelligence.

“The strength of our ecosystem and our distinctive capability as a regional technology hub have helped us to attract record amounts of inward investment from some of the largest global financial institutions.”

He added: “It’s also clear that we are operating in an increasingly competitive marketplace, both domestically and internationally, leaving no room for complacency.

“We will continue working closely with the Scottish and UK Governments, making the case for a strong business environment and policies that put financial services at the heart of Scotland’s economic growth agenda.”

Miles Celic, chief executive of TheCityUK, argued that the financial sector could be improved even further if politicians ensure policy-making favours the industry.

He said: “With growth the number one priority for policymakers across the country, financial and related professional services must be central to this strategy.

“This industry is a dynamic force driving in Scotland, delivering high productivity and well-paid jobs.

“And there is more it can do to support growth and jobs.

“We urge leaders at all levels to prioritise policies that can unleash that potential.”

Deputy First Minister Kate Forbes said: “The financial and professional services industry is one of Scotland’s enduring economic strengths. The Scottish Government is working hard to enhance Scotland’s reputation as a destination for inward investment, a hub for Fintech and a competitive centre for the fast-growing area of Green Financial Services.

“The First Minister has been clear that driving economic growth is a key priority and ministers are committed to working right across the economy, with public and private partners and constructively across Parliament, to maximise the huge economic opportunities that lie ahead.”

The UK Government has been contacted for comment.