London’s future is looking bright, with finance leaders showing strong confidence in the capital’s global potential. A recent survey from KPMG shows a fresh wave of optimism, as many believe the concerns over the capital’s position as a financial hub have been exaggerated.
In KPMG’s latest UK Financial Services Sentiment Survey based on responses from over 155 industry leaders, more than half said they believe in London’s long-term growth. Around 20% even plan to invest over 40% of their total revenue into their London operations. And they’re not alone—almost half of those surveyed expect to follow suit within five years.
More than a third also plan to expand their physical presence in the City, reinforcing London’s role as a key player in global finance.
As Karim Haji, KPMG’s Global and UK Head of Financial Services, put it: “The fact that industry leaders are planning to invest substantially more in the City underscores its significance as an engine of capital allocation and future economic growth.”
The Global Picture
The confidence in London contrasts sharply with growing concerns over the US financial markets. Many global economies are still feeling the aftershocks of past US trade policies, which have led to rising uncertainty and slowed growth expectations. The IMF’s Kristalina Georgieva recently said that global trade tensions had pushed uncertainty “off the charts,” prompting economic downgrades around the world.
In this context, Haji argues, it’s more important than ever to focus on the positive: “We should be celebrating the City, not talking it down,” he said, pointing to the challenges geopolitical shifts have posed to economic stability.
Positive Momentum
After a challenging year in 2024, London’s financial scene is beginning to turn a corner. The early months of 2025 have brought encouraging momentum, with new listings and growing interest from firms across Europe.
Recent developments include:
- MHA successfully launching its IPO on London’s AIM market last week—an encouraging sign for the capital’s appeal to growing companies.
- Several European tech firms now viewing London as a more stable and attractive alternative to the US for IPOs, given current market conditions.
- Zopa Bank’s CEO, Jaidev Janardana, highlighting the UK’s stability and strong legal framework as key reasons London is gaining renewed interest from companies considering a public listing.
Janardana added, “The UK’s respect for the rule of law is something people will start to appreciate more, given the way the world is going.”
What’s Next for London?
Financial leaders are now urging the government to take action to help London reach its full potential. Many believe that bringing private capital back into the UK and improving tax incentives would go a long way in strengthening the City’s appeal.
In fact, 45% of finance bosses named better tax incentives as a top priority to encourage future growth.
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