UK ranked second for global accounting services

UK ranked second for global accounting services

Jan 29, 2024

The value of exports of accounting services from UK firms reached £1.7bn in 2022, up from £1.6bn on the previous year, and is vital to the development of accounting skills globally

There was no surprise the UK was considered important to the development of the accounting sector as the UK and Ireland are home to 400,000 members in just seven of the main accounting bodies, according to the FRC. It is also home to the global headquarters of the Big Four accounting firms.

TheCityUK report said: ‘The UK occupies a key position in the delivery of accounting services worldwide, with many of the largest global firms headquartered here.

‘London is generally considered one of only two full-service international financial services’ hubs globally – the other being New York.’

London is ranked second after New York due to the ‘co-location of banking, insurance, fund management, securities, derivatives, foreign exchange expertise, and skilled labour, along with its developed market infrastructure and clusters of related professional services excellence’.

City minister Bim Afolami said: ‘This research shows that the UK is a dominant financial services centre – we’re the largest net exporter of financial services and the second largest services exporter in the world, leading the way in areas such as legal services, finance, insurance, and private equity.’

The UK has 38% of the total foreign exchange global turnover and the same amount of global foreign exchange trading figures. As well as this, there are approximately two times as many US dollars traded in the UK than in the US.

However, in terms of sole financial services exports the UK comes in second (£94.9bn), proving its global competitiveness in the sector. It is no surprise that the US leads this table with £154.2bn of exports, followed by Luxembourg (£59.9bn), Singapore (£38.2bn) and then Germany (£36.8bn).

The US actually counts for 33.5% of the financial services total exports, with the EU as a whole accounting for 28% of this.

In terms of trading partners for the UK, the US is still top of this with 33.5% of the total exports, while the EU accounts for 28%, with Luxembourg equating to 6% of this, France 4.8% and Ireland 4.3%.

Anjalika Bardalai, chief economist and head of research at The CityUK said: ‘Amidst ongoing political and economic shifts both globally and in the UK, the resilience and adaptability of the UK-based financial and related professional services industry persist.

‘The UK remains a major global hub for international wholesale finance and maintains the world’s largest financial services trade surplus. As such, the industry is a source of strength for the UK economy.’