Brexit bonanza: London tops Europe for investment with £15.4bn windfall

LONDON has ranked the top spot in a table of the most attractive cities for financial technology (fintech) occupiers across Europe in a Brexit win for Britain.

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Over the last five years, London has brought in more than €18bn £15.4bn (€18bn) of fintech venture capital funding. Now, according to a new ranking table compiled by Savills’ property company, the city has kept its place at the top of the table.

Paul Bennett, director in Savills London tenant team, said: “Companies have previously clustered in the traditional finance areas of The City and Canary Wharf.

“However, as the sector has evolved they are now searching across central London to secure offices that will help them attract the best talent for this growing industry,”

In a Brexit victory for Britain, the amount of funding the capital has received over the last five years has outstripped its European rivals despite the higher cost of renting office space in London.

Berlin only attracted £4.09bn (€4.8bn), while Stockholm and Paris received £3.67bn (€4.3bn) and £2.13bn (€2.5bn) respectively.

London tops Europe for investment with £15.4bn windfall

London tops Europe for investment with £15.4bn windfall (Image: Getty)

City of London

City of London (Image: Getty)

This comes a week after London’s financial watchdog announced a list of changes to its listing rules in a bid to boost incentives for innovative found-led companies.

Among the changes, the Financial Conduct Authority (FCA) confirmed the introduction of a “targeted form” of dual-class share structures within the UK’s premium listing segment.

These structures work by offering two separate sets of shares, one to the general public and another which is retained by founders and executives who have a greater weighting in voting processes.

This comes after new data found the UK economy stalled in terms of growth in October as the GDP only increased by 0.1 percent.

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Prime Minister Boris Johnson

Prime Minister Boris Johnson (Image: Getty)

GDP had been rising steadily since January, as the economy recovered from the coronavirus pandemic, with a small decrease of 0.2 percent from June to July.

However, it appeared that return to pre-pandemic levels has begun to slow.

Economists had forecast that the economy would rise by 0.4 percent.

According to statistics released by the Office of National Statistics, the UK economy still remains 0.5 percent below what it was in February 2020 – before Covid took hold.

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Five key moments that led to Brexit

Five key moments that led to Brexit (Image: Express)

Brexiteer economist Julian Hessop described the data as “disappointing”.

He added: “Timelier business and consumer surveys are more encouraging, and activity should regain that level in November, but only to be whacked again by Omicron and Plan B.”

The announcement of Plan B measures – which include face masks in certain settings and mandatory Covid passes for nightclubs and venues for large gatherings – was met with concern by businesses hoping to use the Christmas period to make up for lost income.

Hospitality businesses, which constitute five percent of GDP, are already reporting a wave of cancellations.

City of London

City of London (Image: Getty)

On Thursday, the chairman of the City Pub Group said that the cost of a pint could rise by 10p because of the latest Covid restrictions.

ONS statistics showed that even in October, the hospitality sector was still the largest drag on UK growth.

It noted: “Downward contributions to services growth included a 5.5 percent fall in accommodation and food service activities, driven by a 7.5 percent fall in food and beverage service activities, particularly within restaurants.

London's financial district

London’s financial district (Image: Getty)

Kate Nicholls, UKHospitality Chief Executive Kate Nicholls, said on Wednesday: “While the Government clearly acknowledges that hospitality is safe and can continue to host celebrations in the lead up to Christmas, the measures announced today will significantly impact consumer confidence and be particularly devastating to city and town centre venues.

“As such, they risk devastating the hospitality sector amid its most important time of the year.

“We therefore desperately need support if we are to survive this latest set of restrictions and urge the Government to stand behind our industry.”

William Murphy

William Murphy

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