London's financial sector shows resilience post-Brexit, but dominance wanes

A decade after the Brexit referendum, London's financial district, the City, presents a picture of resilience, defying many predictions of severe decline. JPMorgan CEO Jamie Dimon, who once warned of shifting 4,000 jobs from Britain, now plans a new tower in Canary Wharf capable of housing up to 12,000 employees, a move hailed as a significant vote of confidence.

Employment in the City is near an all-time high, and banks are reporting record profits. These indicators suggest the British financial industry has weathered the post-Brexit landscape better than anticipated. However, a closer examination reveals a more complex reality.

While the City remains a major global financial hub, its dominance has been eroded. According to Michael Mainelli, former Lord Mayor of the City of London, Brexit undeniably weakened London's position, leading to job relocations to financial centers such as Paris and Dublin. Concurrently, Europe itself has seen its financial markets lose ground to the rapid growth in Asia.

“

Brexit undeniably weakened the City's position, citing relocation of jobs from London to cities like Paris and Dublin. Yet Europe too is weaker. Both the EU and the UK have been losing out to the enormous growth in Asian financial markets.

To maintain service to clients across the European Union, British firms lost their passporting rights, prompting the relocation of an estimated 40,000 jobs to EU financial hubs. Despite this, Britain continues to be a significant destination for foreign investment, holding over £12 trillion in various forms of capital at the end of 2025. Yet, its share of global foreign capital has decreased from 8.6% in 2015 to 7% in 2025, while the US share has grown to 25%.

Research indicates that Britain has lost market share in 10 out of 12 categories of international finance since 2015. William Wright, founder of New Financial, described Brexit's impact on the City as akin to the UK breaking its own arm, not fatal, but certainly damaging, involving a degree of self-inflicted injury. Nevertheless, major financial institutions like JPMorgan and Citigroup are making substantial investments in their UK operations, signaling continued commitment to the London market.

“

The impact of Brexit on the City has been like the UK breaking its own arm - it has not been fatal but nor has it been great, and there was a degree of self-injury.