How Edinburgh's financial sector is making a comeback after 2008 crash
Leading business figure calls on Labour and the SNP to recognise ‘the scale of this opportunity’
In 2007, Edinburgh was ranked 15th on the inaugural Global Financial Centres Index, making it a serious player on the world stage. Just five years later, it had slumped to 37th, with the fallout from the 2008 financial crash hitting the city particularly hard. Some may have feared the worst, that the momentum of the decline was only going to gather pace.
However, in an update on its growth strategy, Scottish Financial Enterprise (SFE) has reported an increase in high-skilled jobs in the sector across Scotland from 136,000 to 157,000 over the last three years. Its contribution to the economy also rose, with a gross value added figure of £17.7 billion, compared to £14.3bn in 2023. And such figures are reflected in the latest Global Financial Centres Index, with Edinburgh now up to 28th.
SFE chief executive Sandy Begbie said this progress had been achieved “despite a challenging economic, political and geopolitical backdrop” and was a “testament to the expertise of people working across our industry and to the collaboration between firms, government, regulators, academia and partner organisations” – underscoring the large hinterland needed for any industry that aspires to be world-leading to thrive.
The need for political ‘stability’
He stressed that both John Swinney’s newly re-elected government at Holyrood and Andy Burnham’s at Westminster now needed to realise “the scale of this opportunity and work with industry – and one another – to support further growth”, adding: “That means creating the stability, competitiveness and policy certainty businesses need to invest, innovate and create jobs. With the right support, we can go even further and faster over the next three years.”
“Stability” doesn’t seems like too much to ask for. Indeed, it is surely more like a minimum standard to expect from our politicians.
Begbie’s emphasis on the need for the Scottish and UK governments to work together is not exactly surprising, given the petty point-scoring that breaks out all too often, but it should still be shocking that this needs to be said in the context of such an important part of the economy.
There is no reason why Edinburgh’s financial sector cannot regain its former status or even surpass it. This is a goal that any politician with the national interest – both Scotland’s and the UK’s – at heart should be working towards. Any who instead resort to party politics should be made to pay a high price.
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