SFE CEO calls for reset in relations between UK and Scottish government, to deliver on growth ambition

Sandy Begbie CBE, CEO of Scottish Financial Enterprise, has called on the UK and Scottish governments to reset relations, in order to drive economic growth across both Scotland and the UK.

The call from the head of the trade body representing financial and professional services in Scotland comes as Andy Burnham begins his premiership and as SFE publishes an update to its growth strategy highlighting a 15% increase in the number employed in the sector. This follows the publication last week of progress report on the Treasury’s growth and competitiveness strategy for financial services.

In its update to the five-year sector growth strategy, SFE highlights the ongoing performance of Scotland’s financial and professional services sector with 21,000 additional high skilled jobs created since 2023. At the halfway point of the strategy, the number of people employed in the sector has increased by 15 per cent, from around 136,000 in 2023 to 157,000 today.

The update also shows that the sector’s economic contribution has grown significantly, with gross value added now standing at £17.7 billion, compared with £14.3 billion when the strategy was launched. This represents an increase of £3.4 billion and means financial and professional services remains one of the largest contributors to the Scottish economy, as well as being worth £12 billion annually in exports, up 16%.

The number of financial services foreign direct investment projects in Scotland has also increased from eight to 11, a rise of almost 40 per cent, helping to secure jobs, increase economic value and support exports, which now stand at £12 billion across the sector.

Underpinning this has been we have seen a notable investment and expansion in both professional and legal services in recent years, supporting the ongoing growth of the financial services sector.

Scotland’s global standing as a financial centre has also improved. Edinburgh has risen from 34th to 28th in the Global Financial Centres Index, while Glasgow has moved from 51st to 43rd. The update also highlights Scotland’s continuing position as the largest fintech hub outside London, with 226 fintech firms and £2.86 billion of fintech investment over the past eight years.

Published to mark the halfway point of SFE’s five-year growth strategy, the report also points to the success of Scotland’s Global Investment Summit, which brought more than 300 key decision makers to Edinburgh and helped secure commitments of more than £100million of investment in Scotland’s key growth sectors of financial and professional services, life sciences and energy.

The proportion of people in Scotland who are unbanked has fallen from 3 per cent to 2 per cent, according to the report, while SFE has launched a new bank account pilot aimed at ensuring every young person leaving school has the opportunity to set up a bank account.

The update comes as SFE marks its 40th anniversary, having been founded in 1986 to connect, convene and champion Scotland’s financial services sector.

Sandy Begbie CBE, Chief Executive of Scottish Financial Enterprise, said: “These figures show the strength, resilience and ambition of Scotland’s financial and professional services sector.

“Since the launch of our growth strategy in 2023, the sector has created 21,000 additional high skilled jobs, increased its economic contribution to £17.7 billion and strengthened Scotland’s position as a leading financial centre with global reach.

“That progress has been achieved despite a challenging economic, political and geopolitical backdrop. It is testament to the expertise of people working across our industry and to the collaboration between firms, government, regulators, academia and partner organisations.

“As two new administrations take shape at Holyrood and Westminster, it is vital that both recognise the scale of this opportunity and work with industry – and one another - to support further growth. 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.”

Economy Secretary Stephen Flynn said: “Scotland’s financial and professional services sector has continued to make strong progress since the launch of SFE’s growth strategy in 2023, building on its position as a major contributor to the country’s economy.

“Edinburgh and Glasgow are recognised global financial centres, drawing on Scotland’s exceptional talent and expertise to attract investment and compete with the world’s leading financial hubs.

“The sector plays a vital role in driving growth, jobs and opportunity across Scotland. The Scottish Government will continue to support its success as a key pillar of our economy.”

Miles Celic OBE, Chief Executive Officer, TheCityUK, said: “Scotland plays a vital role in ensuring the UK’s continued position as a world-class international financial centre. It is fantastic to see how the Scottish industry has continued to grow over the past three years and SFE has really led that charge, not only to drive investment across key sectors but also to champion the industry’s contribution across the nation.

“Continued close collaboration between industry and government and greater pace and ambition to drive essential reforms will realise even greater growth and opportunity – and we’re very proud to support that goal.”