A year ago there were dire predictions that the financial services sector in Leeds and the wider city region would be devastated and take years to recover.
Whilst there regrettably have been substantial job losses, the core strength of the very large retail financial services sector including building societies, retail banks and other financial institutions remains, will grow again and continue to be an important part of the regional economy.
The sector has weathered the worst of the storm. The diversity and resilience of the financial and professional services sector has stood the industry in good stead. The Leeds city region, which covers an area stretching from York and Skipton to the North and East and Halifax and Barnsley to the West and South, has continued to maintain its status as the leading financial services sector outside of London.
Financial Leeds represents many of the major organisations in financial and professional services with interests and operations in Leeds city region. With partners such as Yorkshire Forward, Leeds City Council and the new City Region Partnership Board it has worked hard to preserve jobs and core functions, by making a strong business case for the sector and the region as a powerhouse for financial services and as an attractive location for businesses. We have taken measures to strengthen the brand of Leeds city region as an important financial centre and promoted it in key markets in London, Germany and China.
Looking ahead, there is large degree of uncertainty, particularly with a general election approaching which even in good times has a dampening effect on investment decisions. However there are encouraging signs.
The rate of job losses has fallen and even though the UK did not pull out of the recession at the same time as other western economies, we have a lower unemployment rate than was feared. This is down to government measures and the ability of firms to use a flexible approach, survive and prosper. Various surveys and indicators show business confidence much improved on a year ago.
Financial Leeds will continue its work of promoting the sector for the good of the Leeds city region economy, where financial and business services employ well over 200,000 people and account for over 1 in 4 jobs. We shall be putting more weight behind marketing the Leeds city region as a highly competitive location for inward investment and continue to promote our reputation for the excellence of the services and deal making capability that the region's professional advisers offer.
We shall build on this recognition which has been growing internationally. Leeds has achieved it best ranking to date in the European Cities Monitor, a leading index of business competitiveness published at the end of 2009 by global commercial property consultants Cushman and Wakefield. It shows Leeds has moved up four places from 28th to 24th place in the list of 'Best European cities to locate a business'.
2010 may turn out to be a year of limited progress in the UK economy in terms of jobs and economic growth, but it is important that we maintain confidence in the quality of the businesses here and the excellence of the workforce. We need to intensify our efforts for recovery and put the Leeds city region and the financial and professional business services sector in the best possible position to service the needs of industry and commerce and to benefit from future investment and new business opportunities.