SCOTLAND remains a top UK location for financial services firms helped by the high standard of staff available and the quality of life on offer in the country a survey has found.
EY said the results of its research underlined the standing of Scotland in the eyes of businesses in the sector, many of which have transferred work to the country from other parts of the UK.
“The prominence of Scotland within the UK financial services network is apparent, with 29 per cent of respondents with ambitions for growth deciding to move from other UK locations to invest in Scotland,” said the accountancy firm. It did not name any of the companies concerned.
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EY said political uncertainty and the long-term impact of the Covid 19 coronavirus are unsurprisingly, weighing on sentiment in the sector.
The survey was conducted before the coronavirus crisis erupted.
However, EY partner Sue Dawe, said: “Financial services will play an integral role post Covid 19 as Scotland and the UK seek to strategically reflate the economy.”
EY noted that access to a skilled workforce was the most popular reason for financial services companies to operate in Scotland.
The appeal of the country also reflects the perception that set-up costs are low while employees can enjoy a very good quality of life.
“The power of attraction could extend beyond the UK with Scotland predicted to top the rankings for life satisfaction in 2021 compared to the other countries with notable financial centres in Europe, including the UK, the Netherlands, Ireland, Germany, France and Luxembourg,” said EY.
It noted that Scotland has risen in the quality of life rankings in recent years while London has tumbled down the table.
While competition for investment is fierce, Ms Dawe said Scotland has an extremely strong case to be a top choice for relocation on an international scale.
However, she said financial services firms in Scotland had to work with each other and the governments to ensure the country can offer the depth of skills required to support growth.
Industry body Scottish Financial Enterprise said its members had highlighted the importance of issues such as skills development and digital innovation and the fact that the sector would be required to navigate geopolitical uncertainty.
In a report based on the survey findings, EY said: “Despite the general positivity in the financial sector over the past few years, political uncertainty and the long-term impact of the Covid 19 pandemic are, unsurprisingly, weighing on sentiment.
It added: “Both the uncertain outcome of the negotiations between the UK and its former EU partners as the transitional period following Brexit draws to an end, and continuing calls for a second independence referendum for Scotland, are still key issues for business in 2020.”
The survey found that in addition to rating the quality of the workforce in Scotland employers valued the low staff turnover rates in the country.
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“Tenure is typically four times longer than it is in the London financial services sector,” said EY. “Some respondents also commented on the strong work ethic and resilience of employees in Scotland.”
EY interviewed 21 senior representatives of financial services companies in Scotland between August and October 2019. Nine of the companies have headquarters in Scotland. Twelve are based outside Scotland.
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