London retains pole position as world’s top financial centre despite Brexit
Following fears that Brexit would jeopardise London’s position as the top financial centre of the world, the Z/Yen Global Financial Centres Index (GFCI), published Monday, revealed that London has retained its reputation as the world’s most attractive financial centre. Having fallen only 2 points from last year, London has extended its lead over New York, which struggled to tighten the gap due to fears over US trade following Donald Trump’s appointment to presidency.
Earlier this year, Mr Trump signed an executive order withdrawing the US from the Trans-Pacific Partnership (TTP) after arguing that it would be a “potential disaster for this country”. Trump’s protectionist economic vision has favoured the USA’s self-interest, running the risk of losing long term benefits from international agreements in exchange for short term satisfaction.
The index is compile from surveys and five factors of competitiveness, where London ranked first in all five areas; business environment, human capital, infrastructure, financial sector development and reputation.
Meanwhile, many economists and City lobbyists are forecasting a downturn after Brexit in London’s position and have cautioned against complacency, emphasising the need for clearly defined transitional arrangements when the UK finally leaves the EU.
But despite some negativity, the country is still a great place to invest. With a business-friendly environment, a very competitive tax rates, skilled workforce, innovative leadership, excellent transport and ICT infrastructure, a well-respected legal and regulatory environment a central time-zone, English, the business language of the world, there many benefits to expanding to the UK.
Axada has years of experience in helping firms set up and operate in the United Kingdom and the European Union. For easy access to specialist accountancy and tax services, all in one place, and to find out more about setting up a business in the UK, contact our friendly team.