London to make up ‘more than half’ of new UK banking jobs

The City of London is poised to account for more than half of all new banking jobs in the United Kingdom, according to recently compiled data. Recruitment firm Morgan McKinley's figures reveal that UK banking vacancies are anticipated to increase by nine percent in 2026. London's job market is expected to grow at an unprecedented rate of over 18 times the national average, making up 53 percent of all vacancies.

Manchester's job market is also projected to surge by 69 percent compared to previous levels. This growth in the banking sector is expected to lift confidence across the industry as banks post record profits this year. Barclays, for instance, increased its vacancies by 24 percent year-on-year after its profit surged to £6.1 billion.

However, Lloyds Bank has reduced its number of availabilities. Morgan McKinley's UK senior managing director, Chris Lawton, noted that demand is shifting towards commercial and technological roles, with accountant vacancies weakening. The boost in the City could potentially lift confidence ahead of what many executives believe could be a challenging Budget.

Speculation suggests that Chancellor John Healey might increase a levy on banking profits to ease pressures on public finances, but economists estimate his headroom to be as low as £5 billion. This could add to fears among bond traders over the high level of public sector debt. Additionally, an expected slowdown in growth over the rest of the year may add to these concerns.

The Confederation of British Industry's data indicates that economic activity is expected to fall in the three months leading up to December, further contributing to the subdued outlook. Alpesh Paleja, deputy chief economist at the major industry group, stated that the overall outlook remains "subdued" due to strong cost pressures.