LONDON (Reuters) – Enterprise volumes in UK monetary companies grew for the primary time in two years throughout the last quarter of 2020 when corporations shed employees and distant working within the pandemic spurred critiques of workplace house, a survey confirmed on Wednesday.
The most recent Monetary Companies Survey revealed by employers’ physique CBI and compiled by consultants PwC, was accomplished earlier than a 3rd lockdown was launched in England from January.
“Sadly, the well being and financial image has sadly deteriorated since with restrictions tightening once more,” mentioned Rain Newton-Smith, chief economist on the CBI.
A commerce cope with the European Union got here into impact on Jan. 1 however doesn’t cowl monetary companies, which is being dealt with individually by Brussels below its “equivalence” system.
The EU was the Metropolis of London’s largest buyer.
“In the meantime, work should proceed on utilizing present pathways with the UK Commerce and Cooperation Settlement to succeed in higher outcomes for the monetary companies, significantly on equivalence,” Newton-Smith mentioned.
Companies count on enterprise volumes to develop at a barely faster price within the first three months of 2021, the survey mentioned.
In addition they count on to chop headcount additional this yr, with distant working prompting them to contemplate redefining, reconfiguring or slicing present workplace house.
Many monetary corporations in London have opened hubs within the EU as they don’t count on the bloc to grant a lot direct entry below equivalence.
Consultants EY has mentioned that over 7,500 monetary jobs have already left Britain for the EU.
“Extra work is but to be achieved on the motion of individuals into roles within the EU and the migration of shopper contacts,” the survey mentioned.
Reporting by Huw Jones; modifying by David Evans