JPMorgan, a global financial services firm providing banking, investment, and asset management services, is set to build a new tower in London’s Canary Wharf capable of housing up to 12,000 employees. This commitment, hailed by finance minister Rachel Reeves as a “multi-billion pound vote of confidence,” marks a significant turnaround from CEO Jamie Dimon’s pre-Brexit referendum warning in 2016 that the bank could shift 4,000 jobs from Britain. A decade on, the City of London’s financial district reports near all-time high employment, with banks posting robust profits, suggesting the industry has weathered Brexit’s storm better than many initially predicted.
However, a closer look reveals a more nuanced picture of Britain’s financial centre. While resilient, its dominance has undeniably been eroded. An estimated 40,000 jobs have relocated from London to European financial hubs such as Paris and Dublin, according to the City of London Corporation, to maintain client access across the EU post-loss of ‘passporting’ rights. Michael Mainelli, former Lord Mayor, noted Brexit “undeniably weakened the City’s position,” yet also highlighted that “Europe too is weaker,” with both losing ground to Asian markets. Britain has lost market share in 10 out of 12 categories of international finance since 2015, a “self-injury” as described by New Financial’s William Wright.
Despite these shifts, several factors have underpinned the sector’s continued strength. A post-COVID inflation spike and subsequent interest rate hikes turbocharged bank lending returns. The Labour Party government, after winning power, accelerated deregulation, easing capital requirements for banks and insurers, boosting the insurance sector’s gross written premiums. London has also emerged as a prominent hub for financial technology, exemplified by Revolut, now Europe’s most valuable fintech firm. This local strength comes even as the broader UK economy has struggled with growth, lagging behind the United States and the Eurozone.
While Britain’s share of foreign capital has declined, from 8.6% in 2015 to 7% in 2025, the City continues to attract investment, with Citigroup committing £1.1 billion to its UK operations alongside JPMorgan’s expansions. The impact of Brexit remains difficult to isolate amidst global events like the pandemic, wars, and shifts in trade. Government forecasters estimate long-run economic productivity will be 4% lower due to Brexit. Yet, former City chief Mainelli maintains that the UK hasn’t lost much to the EU in finance, as the bloc itself has not advanced significantly, affirming London’s role as the “capital markets gateway to Europe.”
