14 Nov 2007
Today, Scottish Secretary Des Browne used a Downing Street forum to underline the importance of Scotland's contribution to the UK's financial services sector.
Speaking after a meeting of the Chancellor of the Exchequer's High Level Group on Financial Services, he highlighted the recent growth of the Scottish financial services industry and reiterated the importance of a stable economic, monetary and fiscal framework in allowing the sector to flourish.
Des Browne said:
"The financial services industry is one of Scotland's biggest success stories. Five of our top ten companies are financial services companies and the sector employs more than 100,000 people.
"The City of London is very much at the centre of today's international financial market. Scotland is second only to the City within financial services in the UK, and my membership of this group reflects that. Leading global financial institutions have long been headquartered in Scotland, but companies such as Morgan Stanley, Deutsche Bank, State Street and JP Morgan Chase now have major operations in Scotland."
Also on the group are the chief executives of three of Scotland's most important companies operating in global markets; the majority of the 21 firms represented on the Chancellor's High Level Group have a significant operation in Scotland.
Des Browne added:
"International financial services companies are attracted to Scotland because it is a world class location to live, to work and to do business. However in coming here they also know that they will be operating in the oldest free market area in the world - the United Kingdom - and that by locating in Scotland, they will be operating within the stable fiscal, regulatory and economic frameworks that Scotland, as part of the UK, enjoys.
"In the last seven years, the financial services sector in Scotland has grown by 60%. This is a remarkable achievement and it is the job of Government to ensure that the competitive environment within which this growth has taken place is maintained and built upon."
Gordon Arthur, interim chief executive of Scottish Financial Enterprise added:
"The important fiscal and regulatory decisions that directly affect our industry are made in London and we welcome the chance to work with government at a UK level. Scottish Financial Enterprise is working closely with the Secretary of State for Scotland, who is undertaking an important role within the Chancellor's High-Level Group, to ensure that the interests of the financial services industry in Scotland are strongly represented."
Notes for Editors
1. The Secretary of State for Scotland is a member of the Chancellor's High Level Group on Financial Services. Scottish companies represented are The Royal Bank of Scotland (by Chief Executive Sir Fred Goodwin), Standard Life (Sandy Crombie) and Aberdeen Asset Management (Martin Gilbert).
2. Further details on the membership and the work of the Chancellor's Group are available on www.hm-treasury.gov.uk
3. The financial services industry is of major importance to the Scottish economy, accounting for £7bn (more than 7%) of Scotland's GDP (measured as Gross Value Added).
4. In recent years, Financial services has been the fastest growing sector of the Scottish economy. From Q1 2000 to Q1 2007 the financial services industry in Scotland grew by 60%, while the overall Scottish economy grew by 14% and the whole of the UK financial services industry grew by 47% in the same period.
5. The financial services industry accounts for one in 10 Scottish jobs, with over 108,000 people directly employed in the industry and over 100,000 more employed in support services.
Media Contact: Nathaniel Mumford 0207 270 6875 / 07771 938878