London's City finances see modest impact a decade after Brexit

A decade after the 2016 EU referendum, the feared mass exodus of jobs and capital from London’s financial district has not materialised. Employment in the City of London has risen to about 676,000 people, roughly 25 % higher than in 2019, and banks report record results. Estimates from the Corporation of London indicate that roughly 40,000 jobs were relocated to other European centres such as Frankfurt, Paris and Dublin to retain EU‑passporting rights.

The United Kingdom remains the second‑largest destination for foreign capital after the United States, but its share of global inflows fell from 8.6 % in 2015 to about 7 % by 2025. The City lost market share in most international‑finance categories—including foreign‑exchange trading, public‑equity offerings and assets under management—while fintech investment and over‑the‑counter derivatives saw only marginal declines. Michael Mainelli, former mayor of the City, said Brexit “undeniably weakened the City’s position,” and William Wright described the effect as “like Britain breaking its own arm.” Other EU financial hubs captured only limited gains, with Frankfurt attracting mainly lawyers and Paris drawing investment‑bank traders.