LEEDS CITY REGION A wealth of opportunity. FINANCIAL and PROFESSIONAL SERVICES

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1 LEEDS CITY REGION A wealth of opportunity FINANCIAL and PROFESSIONAL SERVICES

2 FINANCIAL AND PROFESSIONAL SERVICES A MAJOR EMPLOYER SECURITIES DEALING 8,500 2, OTHER INSURANCE LEGAL SERVICES BANKING 9,400 14,100 ACCOUNTANCY MANAGEMENT CONSULTNCY 6,300 4,300 FUND MANAGEMENT 200 (Figures for the city of Leeds)

3 INDEX Leeds and Partners Making Your Plans A Reality The Leeds City Region offers a dedicated and free support service for investors. This prospectus provides a comprehensive introduction to the region, for financial and professional services companies of all size considering investment, expansion or restructure in the UK. P2 & 3 Invest UK, Invest Leeds City Region The UK s significance in the global market P4 & 5 An Introduction to Leeds City Region Information of the region s economy, key sectors and scale P6 & 7 Opportunities to innovate and grow Leading the way in technology innovation and data analytics P8 & 9 At the forefront of Financial Technology (Fintech) Financial technology innovation P10 & 11 World Class Talent The region s world leading and internationally excellent workforce P12 & 13 Global Reach International expertise and connectivity P14 & 15 Super-fast and super-safe financial resiliance Information on the region s digital resilience and capability P16 & 17 Down to business Location and labour costs P18 & 19 Life in Leeds City Region Housing, cost of living and quality of life 1

4 INVEST UK, INVEST LEEDS CITY REGION The UK continues to be one of the most attractive destinations for global investment, with an economy that is growing faster than those of every other major developed country, including America, Germany, France and Canada. Providing easy access to some of the world s largest financial markets within the same working day, companies are uniquely able to transact in Asia in the morning and the Americas in the afternoon. Combine this with a robust legal system, strong independent regulators, a clear and simplified investment application process, competitive taxation and an extensive multicultural and multilingual talent pool, it is no surprise that foreign companies have invested nearly 100 billion into UK financial companies since the start of The UK is Europe s number one destination for foreign direct investment projects and experienced a strong increase in the number of investments in financial and professional services in 2013/14, bringing a total of 31,261 jobs and proving the nation s ability to outperform its rivals. It s this global confidence that makes Leeds City Region ripe for investment, as the second largest financial centre in the UK that generates over 13bn annually and with an exceptional growth forecast of 55% by (TheCityUK, 2014) Leeds City Region is delivering on its ambitions by driving an agenda of increased value, unparalleled advice and expertise, a culture of innovation, extensive digital capability and expansive infrastructure capacity. The Government wants the regions to benefit from the same rapid growth that London has been subjected to over the last three or four years, particularly in fintech. And there is a significant and welcome pull from Leeds. People are waking up to the opportunities that lie outside the capital and the advantages that come with that location Dr Chris Sier, Co-lead on FiNexus and former Director of the Financial Services Knowledge Transfer Network 2

5 With a population of over 3 MILLION and a workforce of 1.9m Leeds City Region is the largest in the UK outside London 55.9 BILLION ECONOMIC OUTPUT Home to one of the most diverse employment business and knowledge bases with significant manufacturing, creative and digital sectors. 91,000+ PEOPLE IN FINANCIAL and PROFESSIONAL SERVICES 9 UNIVERSITIES provide businesses with national or world leading research strengths across multiple disciplines. 36,000 GRADUATES PER YEAR With over 200 firms employing a total of 22,500 people, including 1,000 lawyers our legal sector offers companies in all industries access to top expertise, strong international networks and competitive pricing. first direct bank headquarters in Leeds

6 LEEDS CITY REGION A WEALTH OF OPPORTUNITY An Introduction to Leeds City Region Highest concentration of manufacturing in the UK, turnover of 25 billion The Leeds City Region is a functional economic area comprising of 10 local authorities, located in the centre of the UK. The region is the UK s largest economy and population centre outside of London, generating 5% of England s total economic output, 55.9 billion (LEP). The region also benefits from the largest workforce in northern England, with a working population of 1.9 million and 1.4 million employees (LEP). The economic development activities of the region are supported by the Leeds City Region Local Enterprise Partnership (LEP) and delivered by Leeds and Partners. This partnership is firmly established and has significant decision making capabilities in relation to business funding and support. The strength of the region lies within the scale, heritage and diverse nature of our sector ecosystem and the opportunity within the regions clear and determined agenda to accelerate regeneration, support development and drive innovation and growth. A flourishing property development market coupled with ambitious transport regeneration LEEDS CITY REGION plans An OPPORTUNITY FOR FINANCIAL & PROFESSIONAL SERVICES UK centre for health and innovation, responsible for over 100bn annual healthcare spend I m proud to lead our business in Leeds, proud to live here and proud to be investing Chris Hearld, Senior Partner, KPMG 4 A flourishing digital sector continually at the forefront of technological developments

7 A population of over 3 million with 7 million people within a one hour s drive (LEP Strategic Economic Plan 2014) 28,800 people employed in banking, 15,500 in insurance, 15,000 in legal and 11,300 in accounting (BRES 2012) Over 30 national and international banks are based here, 4 of which have national/ global headquarter operations in the region, including First Direct, Yorkshire Bank, Halifax Bank of Scotland (HBOS) and HSBC (European ICT HQ) Home to 3 of the UK s largest building Society s; Yorkshire Building Society, Leeds Building Society and Skipton Building Society with combined assets of over 60 billion (32% of sector assets nationally) 100,000 businesses and a workforce of 1.3 million Leeds and the wider city region is the UK s 2nd centre for banking and a leading hub for professional services, employing over 91,000 people. City Park in Bradford, awarded the title of Best Place in the UK and Ireland by The Acadamy of Urbanism in 20125

8 OPPORTUNITIES TO INNOVATE AND GROW The financial and related professional services marketplace is being rapidly transformed by technology innovation and data analytics and interpretation. Technological advancements are unlocking the power of intelligent data and driving competitive advantage, areas in which Leeds City Region is ahead of the field. The City of Data The increasing growth rate of data relating to both the social and physical world, often characterised as Big Data, is changing how we see the world around us. It can revolutionise the way we understand the world we live in and help us develop new services, products and solutions, so much so that it has been identified by the UK Government and Research Councils as one of eight great technologies that will power scientific developments and economic growth over the next decade. Leeds City Region is a world class location in data management and the analysis of big data, both consumer and public sector, establishing a firm lead in the data revolution, the most disruptive and transformational influence since the industrial revolution. Our pioneering research and approach to the hosting and interpretation of data via the Leeds Data Mill, the Leeds Open Data Institute (ODI) and Leeds University s Consumer Data Research Centre (CDRC) provides unique access to some of the largest databases, leading academics and researchers globally. The regions innovative approach to data analytics and data science is already largely supported and utilised by companies such as Asda-Walmart, Telefonica, TomTom, Marks & Spencers, Yorkshire Water and market researchers such as Acxiom, Call Credit and CACI. [CDRC - University of Leeds] Investment momentum is steadily building in the emerging fintech sector. The UK and Ireland have seen the volume of fintech deals triple since 2011 a growth three times the global average and more than five times that of Silicon Valley. Leeds City Region is becoming a digital powerhouse with outstanding innovation, skills and capacity. That s the level of opportunity on offer Liz Cashon, Director of Inward Investment Operations, Leeds and Partners 6

9 Home to the largest healthcare data platforms in the world NHS Spine, NHS database, Health and Social Care Information Centre (HSCIC), EMIS and TPP 19% of jobs in knowledge-based sector 7,885 businesses, 64,000 jobs in the Digital and Creative sector In 2011 financial institutions in the UK spent approximately 8 billion on ICT (FintechCity.com) bebionic3 myoelectric hand, RSLSteeper 7

10 LEEDS CITY REGION A WEALTH OF OPPORTUNITY At the forefront of Financial Technology Fintech is one of the most significant growth opportunities for the UK economy, with estimated annual revenue of 20bn (UKTI). Fintech cuts across all sectors of the digital economy and is becoming an increasingly important part of the UK s financial services industry whilst revolutionising retail. Global investment in financial technology ventures has more than tripled during five years, from under $930 million in 2008 to more than $2.97 billion in 2013 and given the dramatic changes occurring in financial services, driven by new technology, regulations, consumer behaviour, and the need for cost reduction, this global trend is expected to continue for the foreseeable future. Leeds City Region is primed to be the UK s Northern Fintech centre, supporting London as the leading European centre, thanks to its burgeoning digital capability and its recognition as the UK s second centre for banking services. Health Data Digital & Creative FinTech DATA EXCELLENCE Retail & Gaming Open Data Big Data The fintech industry needs the right eco-system to thrive: a centre for financial services, leading academia and strong civic leadership. With these three components, there s no reason why the Leeds City Region cannot become a global hub for fintech. The region can provide access to market through the high number of banks and building societies based in the area and, with growing technology and digital sectors, as well as a wealth of understanding and knowledge around the financial market, the Leeds City Region is a natural choice for fintech. Peter Cunnane, Economic Development Officer at the City of London Corporation 8

11 Leeds was recently announced as the home of the first Fintech accelerator to be developed outside of London aql DC3 datacentre in Leeds 9

12 World-Class Talent The ability to continually recruit suitably qualified candidates is critical to investing and growing your business and Leeds City Region has future proofed its offering, analysing the industry talent requirements of today whilst anticipating and planning for the talent requirements of tomorrow. The Talent of Tomorrow The region is at the forefront of developing innovative pathways into employment, in order to meet the skills and workforce demands of the future. The region is home to nationally acclaimed programmes such as Make the Grade created by The Ahead Partnership that integrates the world of work with education, building longterm, local partnerships between employers and schools. The region also benefits from a number of sector hubs across our Universities, all established to improve external engagement, enhance networking and collaboration and provide business access to world-class research capabilities. These hubs marry external market demand with recognised academic research and innovation strengths. Innovative schemes introduced by our renowned private sector include the Leeds- Legal Apprenticeship Scheme, designed not only to provide an alternative route into the rewarding legal profession by broadening and diversifying the talent pool, but uniquely to also sustain growth and increase retention. The Talent of Today The Leeds City Region is home to the highest concentration of higher education institutions across Europe, which collectively produce one of the most productive and multi-disciplined workforces throughout the UK. There are 12 universities and higher education institutions in Yorkshire and Humber, with over 210,000 multi-disciplined students from 150 countries around the world. In total, these establishments contribute 3.68bn to the economy and play a critical role in generating jobs, creating innovation and driving enterprise. [Yorkshire Universities] 10

13 York Law School, University of York Two of our universities Leeds and York appear in the top 150 Times Education World University Rankings Bradford and Leeds Universities appear in the FT s European Top 100 Business Schools Rankings 2013 By 2016 one in every two jobs across the region s financial services sector will be a highly skilled job and over the next decade, the sector is forecast to account for more than a quarter of employment growth THE CITY UK Professional, scientific and technical Financial and insurance Business administration and support services Information and communication EMPLOYMENT IN key INDUSTRIES key disciplines studied at the region s 8 universities Computer sciences Law Business and administrative studies Languages 11

14 LEEDS CITY REGION Global Reach Business is becoming more collaborative and international and our thriving financial and related professional services sector has the global reach, expertise and capability to assist firms with international or multi-destination aspirations. Firms have the commercial know-how and technical legal capability to work on big-ticket global assignments, offering a high-quality, nearshore alternative to London that not only delivers efficiency but also enables firms to create value. The region is therefore acts as a springboard from which to export to other markets across Europe and the globe. Through its networks of road, rail, air and sea routes, Leeds City Region offers excellent links to the rest of the UK and the world with a number of major international airports within easy reach, and London only two hours away by train or one hour by air. Many global companies have already chosen to locate global operations in the region including: Direct Line insurance group - HQ operations DLA Piper s global IT centre TSYS international credit and debit card processing centre First Direct bank - HQ operations ASOS international distribution centre The key thing that has changed and the biggest change in what I m trying to do day-to-day is the proportion of international work. Most fee-earners will have at least one matter on with an international dimension. You re aware that you re in an international business. Sarah Day, DLA Piper Office Managing Partner, Leeds 12

15 MAJOR UK RAIL LINKS Aberdeen MAJOR UK ROAD LINKS Glasgow EDINBURGH Newcastle LEEDS CITY REGION Hull Liverpool Manchester Sheffield Birmingham PORT OF HULL British Airways connections to 180 global destinations via Heathrow 23% of all England s cargo passes through the port of Hull Bristol LONDON 13

16 Super-fast and super-safe financial resilience In order to meet the increasing international needs of businesses, the financial and related professional services sectors are striving to provide a more digitised, high-speed and personalised service. However with increasing legal and regulatory requirements for accountability and information protection, Leeds and the wider city region is a safe and capable place to do business. 14 High-speed Leeds, like London, has a high capacity internet exchange (IXLeeds) right in the heart of the city IXLeeds allows businesses and communications operators to exchange data at low cost and speeds up to 10Gigabits per second The city region hosts one of the highest concentrations of Internet Service Providers in the UK. The UK s first ISP, Freeserve, was foundered here 100 Megabit and Gigabit broadband services available at low cost across Metropolitan Leeds The UK s largest mobile data network has invested 4.5m2 improving 3g reception and mobile internet across the city, with a 35 percent growth in network sites from 117 to 159 Over 24 Terabits per second of capacity within the main aql city data hub Enough data network capability to support the entire North of England (source: aql) Resilient Infrastructure The city region Leeds operates its own data centres and network infrastructure, providing London-independent disaster recovery High speed fibre routes east and west out of the UK which are independent of London The home of some of the highest levels of HMG Accredited security datacentres, already recognised by over 25 of the FTSE 100. Home to its own internet exchange point IXLeeds, allowing regional and national ISP s to exchange data at low cost and speeds in multiples of 10 Gigabits per second. Much of the regions social network and streaming media traffic is served from datacentres within the heart of the city (source: aql)

17 The city region with the greatest digital and creative business growth 100m investment from the public sector in digital infrastructure is expected Leeds City Region has the greatest concentration of Health Informaticians in the UK Future investment will make York the most connected city in Europe by 2015 Leeds City Region is the nerve centre of the North s knowledge economy Over 35% of the UK s internet traffic is hosted in Leeds LEEDS CITY REGION A WEALTH OF OPPORTUNITY Leeds is home to Europe s biggest internet server farm Leeds has more ISDN lines per head of population than any other major city aql s 43m datacentre will be the largest outside of London 15

18 Down to Business VALUE FOR MONEY COST OF STAFF Location and Labour Costs Leeds was named one of the best cities in Europe to locate a business by global commercial property consultants Cushman & Wakefield (2011). The survey of senior executives from over 500 of Europe s biggest company s quotes easy access to markets (clients and customer), together with the cost, amongst the city s many advantages. In a report of over 35 European cities Leeds ranked 3rd for value of office space and 8th for cost of staff, ahead of London, Birmingham, Manchester, Glasgow, Frankfurt, Paris and Zurich. LEEDS VALUE FOR MONEY OF OFFICE SPACE BIRMINGHAM MANCHESTER GLASGOW FRANKFURT LONDON PARIS LEEDS GLASGOW BIRMINGHAM MANCHESTER FRANKFURT PARIS LONDON Our globally successful financial and professional services region is unique in its own right, both in how it complements the nation s capital and in what sets it apart from the competition. Victoria Reid, Associate Director of Financial and Professional Services, Leeds and Partners 16

19 The average weekly pay for a full-time employee in Leeds was 473 in 2013 over 30% lower than London. The national statutory minimum wage for adults aged 21 and over is 6.50, or 260 per week based on a 40 hour working week. 17

20 Life in Leeds City Region Cosmopolitan Cities, Breathtaking Countryside Leeds City Region: attract and retain talent The visitor cities of Leeds and York, rich cultural and built heritage and internationally renowned food and drink complement destination retail arcades and some of the most stunning scenic countryside in the world the Yorkshire Dales and North York Moors. Excellent schools, a first class health service and endless activities also help businesses to attract and keep the brightest people. The Great Indoors.and Out A high-quality standard of living, year round, whatever the weather Stunning coastlines, riversides and gardens, stateley homes, theatres, art galleries and festivals. Leeds City Region is home to some of the most visited attractions in the UK and offers year-round interest given it s breathtaking changing seasons. It also has a long history of sporting excellence, hosting both the Tour De France 2014 and Rugby World Cup As the birthplace of rugby league, leading cricket and football teams. Well Connected Travel is incredibly easy The UK capital London, Forbes most influential city in the world is just over two hours away from Leeds and York, with hourly trains offering first class, café car, full WIFI and commuter comfort. Flights from London reach other global cities non-stop a minimum of three times a week. Leeds Bradford, the city region s airport and the Uks fastest growing, also links business travellers with 75 destinations including regular flights to Paris, Rome, Dublin and Geneva. 18

21 There s an epic quality to Yorkshire. Just 10 minutes out of the city, you re staring at wild moorland, mountains and rivers that took my young imagination on the most incredible journeys. Michael Palin ACTOR & TRAVEL WRITER 19

22 FOR FURTHER INFORMATION ON THE LEEDS CITY REGION AND TO EXPLORE HOW LOCATING HERE CAN BENEFIT YOUR BUSINESS, PLEASE CONTACT: LIZ CASHON Director of Inward Invesment Operations VICTORIA REID Associate Director of Financial and Professional Services Leeds And Partners City Exchange, 11 Albion Street, Leeds LS1 5ES UK T: +44 (0) e: w: leedsandpartners.com IN ASSOCIATION WITH