London has lost its sole lead as the world’s top global financial centre, according to research by the City of London Corporation, the first year that the UK capital has not been the clear leader.
London and New York have tied for the top spot and the findings from the City’s governing body will add to concerns over the competitiveness of the Square Mile.
Chris Hayward, policy chair at the City of London Corporation, said London’s “competitive advantage is at risk”, adding: “A long-term plan to stimulate growth in the financial and professional services sector is needed.”
The City of London Corporation has begun working on its own proposals to ensure the UK financial and professional services sector remains internationally competitive over the next decade.
The survey showed London received an overall competitiveness score of 60, up from 59 last year, but New York increased its score by two points to equal London. Singapore placed in third, scoring 51, while Frankfurt scored 46, Paris 43 and Tokyo 35.
London continued to perform well across factors such as innovation, reach of financial activity, resilience and business infrastructure, talent and skills, as well as regulation.
But New York’s score increased through high growth in tech investment, deal making and increased levels of sustainable finance issuance.
The report found that the UK’s financial and professional services sector generated £64bn in trade surplus in 2022 — the largest of any country. But it also said fewer international companies were choosing to list in London, despite changes to listing rules.
Concerns over the competitiveness of the City have been raised after companies such as Cambridge-based ARM and CRH, the world’s largest building materials group, have said that they would seek listings in New York. Other companies such as Flutter Entertainment are also mulling a similar move.