Economy of Edinburgh#Financial Services

File:Edinburgh IMG 4133 (14919305115).jpg headquarters in Edinburgh]]

File:BT Edinburgh Park.jpg]]

Banking has been a mainstay of the Edinburgh economy for over 300 years, since the Bank of Scotland was established by an act of the Scottish Parliament in 1695. Today, the financial services industry, with its particularly strong insurance and investment sectors, and underpinned by Edinburgh-based firms such as Scottish Widows and Standard Life Aberdeen, accounts for the city being the UK's second financial centre after London and Europe's fourth in terms of equity assets.{{Cite web |title=Edinburgh's financial services sector |url=http://www.edinburgh-inspiringcapital.com/invest/key_business_sectors/financial_services.aspx |url-status=dead |archive-url=https://web.archive.org/web/20101116235214/http://www.edinburgh-inspiringcapital.com/invest/key_business_sectors/financial_services.aspx |archive-date=16 November 2010 |access-date=11 May 2010 |publisher=Edinburgh Brand}}

The NatWest Group (formerly Royal Bank of Scotland Group) opened new global headquarters at Gogarburn in the west of the city in October 2005. In the 19th century, Edinburgh's economy was known for banking and insurance, publishing and printing, and brewing and distilling. Today, its economy is based mainly on financial services, scientific research, higher education, and tourism.{{Cite web |title=Edinburgh by Numbers |url=http://www.edinburgh.gov.uk//download/downloads/id/1447/edinburgh_by_numbers_2013-14 |url-status=dead |archive-url=https://web.archive.org/web/20140611162548/https://www.edinburgh.gov.uk/ |archive-date=11 June 2014 |access-date=16 June 2014 |format=PDF}}

• In 2011, the population of Edinburgh was estimated at 476,600, which was an increase of 28,000 on the figure from 2001 which stood at 448,600."Scotland's Census - 2011 Census: First Results on Population and Household Estimates for Scotland - Release 1B" {{cite web |url=http://www.scotlandscensus.gov.uk/en/censusresults/rel1bhtml/j26573304.htm |title=2011 Census: First Results on Population and Household Estimates for Scotland - Release 1B |access-date=2013-10-27 |url-status=dead |archive-url=https://web.archive.org/web/20131203023600/http://www.scotlandscensus.gov.uk/en/censusresults/rel1bhtml/j26573304.htm |archive-date=3 December 2013 |df=dmy-all }}
• The city has the second-highest gross value added (GVA) per resident (behind London) in major UK cities, with the average being £34,178 per resident.[http://www.ons.gov.uk/ons/dcp171778_291684.pdf "ONS - Regional Gross Value Added (Income Approach), December 2012"]
• The employment rate for the city stood at 73.6% for Q1 of 2013, which was higher than the rate for Scotland as a whole, which stood at 71.8%.[http://www.edinburgh-inspiringcapital.com/pdf/E.%20Watch%20October%202013%20V2..pdf "Edinburgh Economy Watch - October 2013"] {{webarchive|url=https://web.archive.org/web/20131203064432/http://www.edinburgh-inspiringcapital.com/pdf/E.%20Watch%20October%202013%20V2..pdf |date=3 December 2013 }}
• The city has the lowest percentage of total working age residents claiming Jobseeker's Allowance of major UK cities at 3.2% as of December 2012.[http://www.edinburgh-inspiringcapital.com/pdf/Edinburgh%20by%20Numbers%202013-14%20Final.pdf "Edinburgh by Numbers 13/14"] {{webarchive|url=https://web.archive.org/web/20131016173559/http://www.edinburgh-inspiringcapital.com/pdf/Edinburgh%20by%20Numbers%202013-14%20Final.pdf |date=16 October 2013 }}
• Edinburgh is second only to London in average gross annual earnings per resident in major UK cities, with an average salary of £27,800.[http://www.scotsman.com/news/only-london-beats-edinburgh-on-productivity-in-uk-1-2947131 "Scotsman 2013 - Only London beats Edinburgh on productivity in UK"]

The table below shows the top employers in terms of employee numbers in the City of Edinburgh:

This next table highlights the number of people in employment in the City of Edinburgh by industrial sector:

{{See also|Royal Bank of Scotland|Bank of Scotland|Standard Life Aberdeen|Scottish Widows}}

File:Standard Life Building, Lothian Road Edinburgh.jpg on Lothian Road. The area is at the heart of an expanding financial district.]]

Edinburgh is the second largest financial centre in the United Kingdom, after the City of London, and the fourth in Europe by equity assets.Edinburgh Brand Website [http://www.edinburgh-inspiringcapital.com/invest/key_sectors/financial_services.aspx Edinburgh's Financial Services Sector] {{webarchive|url=https://web.archive.org/web/20100505130603/http://www.edinburgh-inspiringcapital.com/invest/key_sectors/financial_services.aspx |date=5 May 2010 }}

Edinburgh has been a centre of banking for over 300 years; the Bank of Scotland was founded in 1695, by an act of the original Parliament of Scotland and is now part of Lloyds Banking Group, who have retained the Scottish headquarters in Edinburgh. The Royal Bank of Scotland (RBS) was founded in 1727 by royal charter. In 2000, RBS acquired National Westminster Bank in the biggest banking takeover in British history. It is now part of the NatWest Group, who have also retained the Edinburgh headquarters, operating from a complex at Gogarburn since 2005. TSB, Tesco Bank,The Scotsman[http://news.scotsman.com/tesco/Jobs-boost-as-Tesco-to.5027951.jp Jobs Boost as Tesco to base finance arm in Capital] Sainsbury's Bank, and Virgin MoneyThe Scotsman [http://news.scotsman.com/virgin/Virgin-Money-provides--jobs.5977175.jp Virgin Money provides jobs boost for the city] also have headquarters in the city.

In insurance terms, indigenous Edinburgh companies such as Standard Life and Scottish Widows form a large part of the European insurance sector as well as being major employers in the city. Scottish Widows was founded in 1815, managing £145.79 billion worth of funds at June 2013{{Cite web |url=http://www.swip.com/global/ |title=Scottish Widows Partnership |access-date=28 November 2013 |archive-url=https://web.archive.org/web/20131129072659/http://www.swip.com/global/ |archive-date=29 November 2013 |url-status=dead }} with a workforce of around 3,500.

The New Town and city centre has traditionally been home to many companies, in the banking, finance and legal professions, but modern needs have caused many to relocate. Immediately to the west of the city centre is the Terry Farrell master-planned Exchange business district, which now houses major employers such as Scottish Widows, Standard Life, the Clydesdale Bank, and Baillie Gifford.

Edinburgh Park is one of the largest business parks in the UKEdinburgh Park [http://www.edinburghpark.co.uk/overview.html Edinburgh Park Overview] {{Webarchive|url=https://web.archive.org/web/20060628074103/http://www.edinburghpark.co.uk/overview.html |date=28 June 2006 }} and is located on the western periphery of city, near Edinburgh Airport. The park was opened in 1992 alongside the large out-of-town shopping development at South Gyle and is close to major routes such as the A8, the M8 motorway and the A720 Edinburgh City Bypass and now has its own railway station. Close to Edinburgh Park at Gogarburn, the Royal Bank of Scotland have opened their global headquarters. HSBC, Royal Bank, Diageo, J. P. Morgan, Telewest, BT, Fujitsu and Lloyds Banking Group have all established large offices in this park. Following the opening of the Royal Bank's new headquarters, there will be around 20,000 people working in the western outskirts of the city.

File:20231022 Rockstar North.jpg headquarters, the developer famous for the Grand Theft Auto series]]

Edinburgh has an estimated 17,136{{Cite web |url=http://www.techcityuk.com/technation/ |title=Tech Nation - Tech City UK |access-date=5 May 2015 |archive-url=https://web.archive.org/web/20150501015658/http://www.techcityuk.com/technation/ |archive-date=1 May 2015 |url-status=dead |df=dmy-all }} people working within digital companies. The technology sector has grown upon the expertise within the city’s universities. The city has seen a growth in the number of software companies in the city over the last 10 years and there are now{{When|date=September 2015}} more than 100.{{Cite web |url=http://www.investinedinburgh.com/industry-strengths/technology-software/leading-tech-firms/ |title=Tech companies in Edinburgh | Invest Edinburgh |access-date=5 May 2015 |archive-url=https://web.archive.org/web/20150923011737/http://www.investinedinburgh.com/industry-strengths/technology-software/leading-tech-firms |archive-date=23 September 2015 |url-status=dead }} These include travel search website Skyscanner and one day fantasy sports provider FanDuel who have grow within the city. Rockstar North (formerly DMA Design), known for creating the Grand Theft Auto series, is also based in Edinburgh.{{cite web|url=http://www.rockstarnorth.com/ |title=Award-Winning Video Game Developer Based in Edinburgh, Scotland |publisher=Rockstar North |access-date=9 February 2013}} Several large corporates have invested in Edinburgh including Amazon Development Centre Scotland and Microsoft.

The School of Informatics is the UK’s largest and longest established research group in informatics. In the REF 2014 assessment for computer science and informatics the School of Informatics has produced more "world-leading" and "internationally excellent" research (4* and 3-star) than any other university in the UK.{{cite web| url = http://www.inf.ed.ac.uk/research/about/REF/results.html| title = REF 2014 results}}

A large number of technology companies are based in the area around the University of Edinburgh.

File:Jenners2.jpg on Princes Street, one of Edinburgh's main streets]]

Edinburgh has not had as large or as significant a retail sector compared to Glasgow, however large out-of-town shopping developments have taken place in recent years,{{When|date=September 2015}} such as the Gyle development in 1993 and the Fort Kinnaird shopping complex located to the east of the city. The St. James Centre and Princes Mall started in the 1970s, then Cameron Toll in the 1980s. More recent developments are the Gyle centre next to Edinburgh Park, Ocean Terminal in Leith and the retail parks at Hermiston Gait, Straiton and Fort Kinnaird which are all next to the Edinburgh City Bypass. Edinburgh has many modern supermarkets in its suburbs which offer a more day-to-day type of shopping. As a shopping centre, particularly Princes Street, Edinburgh suffered some decline for a number of years, but since 2005 has seen the City centre yield rise in comparison to other similarly sized cities.Valuation Office Agency [http://webarchive.nationalarchives.gov.uk/20060214062506/www.voa.gov.uk/publications/property_market_report/index.htm VOA Property Market reports] Recent attempts to encourage shoppers back into the city centre have included the development of top brand department stores on George Street and St Andrew Square and plans to redevelop Princes Street in the future.Capital Review[http://www.capitalreview.co.uk/pdf/cr/CR20.pdf] {{Webarchive|url=https://web.archive.org/web/20080529144946/http://www.capitalreview.co.uk/pdf/cr/CR20.pdf|date=29 May 2008}}, Capital Review: Issue 20: String of Pearls

In October 2016, the St. James Centre was demolished and rebuilt with a new £1 billion design by Allan Murray Architects and BDP Architects, and was opened to the public in June 2021. It was renamed the St James Quarter and is able to accommodate up to 80 new brands. While it brought a new excitement to the city with many new brands appearing within the quarter, it caused many brands located in Princes Street to relocate to the St James Quarter, undermining the hopes to revitalise the street. St James Quarter was designed to be in the shape of an eye, with the 5-star W Hotels taking pride of place in the 'iris'. This central feature, however, caused a lot of controversy in the city and even put Edinburgh's UNESCO World Heritage status under threat.

File:Scotsman Hotel Exterior.jpg]]

Tourism is another important mainstay of the economy of Edinburgh, supporting 30,000 jobs in the city worth £1.6 billion to the city economy.Edinburgh Convention Bureau {{cite web |url=http://www.conventionedinburgh.com/press/ |title=Press & PR fast facts |access-date=2006-06-16 |url-status=dead |archive-url=https://web.archive.org/web/20060618092237/http://www.conventionedinburgh.com/press/ |archive-date=18 June 2006 |df=dmy-all }} Edinburgh Convention Bureau - Fast Facts In 2011, visitor spending was £1.16 billion, compared to £250 million in 1990.{{cite web|url=http://www.etag.org.uk/wp-content/uploads/2014/05/Key-Facts-Business-Opportunity-Guide-2013.pdf|title=Business opportunities: Tourism in Edinburgh – key figures|date=2013|website=Edinburgh Tourism Action Group}} Edinburgh is Scotland's most popular tourist destination in terms of visitor numbers, with numbers growing substantially each year, particularly in the budget travel and backpacking sector, assisted by the growth of Edinburgh Airport and direct rail links to the rest of the country. The annual Edinburgh Festival attracts record numbers, as does the Hogmanay street party each New Year, with over 4.3 million visitors attending Edinburgh's various festival events over 2012.{{cite web |url=http://www.edinburgh-inspiringcapital.com/pdf/Edinburgh%20by%20Numbers%202013-14%20Final.pdf |title=Archived copy |access-date=2013-10-27 |url-status=dead |archive-url=https://web.archive.org/web/20131016173559/http://www.edinburgh-inspiringcapital.com/pdf/Edinburgh%20by%20Numbers%202013-14%20Final.pdf |archive-date=16 October 2013 |df=dmy-all }} The Edinburgh Festivals in August alone generate in excess of £100 million for the Edinburgh economy. Another component of Edinburgh's tourist industry is business and conference tourism, which generates in excess of £74m for the city.The Scotsman [http://thescotsman.scotsman.com/scotland/From-nuclear-physics-to-boob.6214820.jp From nuclear physics to boob jobs - Edinburgh conferences worth £74m] Edinburgh is the UK's most popular conference destination, ahead of both London and Glasgow. Visitors are attracted by the UNESCO World Heritage Sites of the Old Town and the New Town as well as the history and culture of the city most visible in tourist attractions such as Edinburgh Castle and the Palace of Holyroodhouse.

Edinburgh is the centre of Scotland's government and legal system. As a consequence many government departments and public sector agencies are headquartered in the city as well as the High Court of Justiciary and the centres of Scotland's legal establishment. As a centre of Scots law, the legal profession has had a long presence in Edinburgh, with many premises in the New Town belonging to legal practices and firms. Many ancillary economic undertakings and political pressure groups have thus set up around this new seat of government leading to a boom in the recruitment and employment of public sector officials. The City of Edinburgh Council and the National Health Service are the two largest employers in the city.

{{See also|University of Edinburgh|Heriot-Watt University|Napier University|Queen Margaret University|Universities in Scotland}}

Edinburgh is a major centre of education in the United Kingdom, and has been since the establishment of the University of Edinburgh in 1583, with another three major higher education institutions in the city developing later. Education and academic research (including medical research) plays a significant role in the economy of the city. The presence of these educational institutions also attracts many overseas students (27,005) and those from the rest of the UK (15,270). For the 2021–22 academic year, there is a student population of 74,710 enrolled across the four universities in the city.{{cite web|url=https://www.hesa.ac.uk/data-and-analysis/students/where-study#provider|title=Where do HE students study?: Students by HE provider|work=HESA|at=HE student enrolments by HE provider|access-date=8 February 2023}}

Life sciences and microelectronics in particular and have grown in prominence in recent years.{{When|date=September 2015}} The University of Edinburgh is a leader in the fields of medicine and law, and was a pioneer in British artificial intelligence teaching. Heriot-Watt University specialises in science and engineering and Napier University in the fields of computing and business, as well as creative fields.

The city is also home to a number of independent schools, with around one in five school-age pupils attending private institutions.[http://www.edinburgh.gov.uk/internet/Attachments/Internet/Business/Economic_development/Strategy_and_Research/EBN_2010-2011_(PDF_1.2_MB).pdf Edinburgh by Numbers 2010/2011 - City of Edinburgh Council] {{dead link |date=March 2016}}{{cbignore}}

The city is linked internationally by Edinburgh Airport (EDI) which in 2018 saw 14.3 million passengers throughout the year,{{cite web| url = https://www.edinburghairport.com/about-us/facts-and-figures/| title = Facts and figures {{!}} Edinburgh Airport}} which makes Edinburgh Airport the busiest Scottish Airport and sixth busiest in the UK.

In terms of rail connections, Edinburgh Waverley railway station is the principal mainline station in the city serving over 22.5 million passenger journeys over 2011–12.{{cite news|url=http://www.scotsman.com/news/transport/waverley-station-overhaul-to-create-city-piazza-1-2936467 |title=Waverley station overhaul to create city 'piazza' |work=The Scotsman |date=2013-05-19 |access-date=2013-11-28}}

The city is also well served by its bus service, with Lothian Buses having its headquarters in Edinburgh. Over 70 services run throughout the city, which includes a direct link to the airport and open top buses for city tours.{{cite web|url=http://lothianbuses.com/about-us/our-company/ |title=Our company |publisher=Lothian Buses |access-date=2013-11-28}}

The first phase of the Edinburgh Trams was completed in May 2014, consisting of 16 tram stops along the single 14 km (8.7 mi) line. The route linked Edinburgh Airport in the West, to York Place in the East.{{cite web|title=Tram Route Map and Stops|url=https://edinburghtrams.com/plan-a-journey/route-map/|website=Edinburgh Trams|access-date=16 April 2015}} The second phase of the Edinburgh Tram development was completed in June 2023 and added a further 8 stops from Picardy Place, which replaced the former York Place stop, to Newhaven in Leith, extending the line to 18.5 km (11.5 mi). There are plans to build new lines to Granton, the Royal Infirmary of Edinburgh, and Musselburgh but nothing is certain at the moment.

File:EICC1.JPG building at the heart of the redeveloped Exchange District in the west end of the city]]

Derelict land and areas on the waterfront of Edinburgh at places like Granton and Leith are in the process of being regenerated to make way for mixed commercial, residential and industrial developments to further provide for the forecast growth of the city.

In an economic sense Edinburgh is constrained by its relatively small size,Scottish Enterprise, 2006 [http://www.scottish-enterprise.com/sedotcom_home/news-se/news-fullarticle.htm?articleid=161900] {{Webarchive|url=https://web.archive.org/web/20061021221311/http://www.scottish-enterprise.com/sedotcom_home/news-se/news-fullarticle.htm?articleid=161900|date=21 October 2006}} Capital Catching up with International Competitors and that there are economic benefits to be had with greater collaboration with surrounding areas such as Glasgow.Glasgow Economic Facts 2005 [http://www.glasgoweconomicfacts.com/documents/Glasgow%20Report%20BAK%20-%20Executive%20Summary%20Des%204.pdf Glasgow Economic Analysis and Benchmark Report] {{webarchive|url=https://web.archive.org/web/20060507231600/http://www.glasgoweconomicfacts.com/documents/Glasgow%20Report%20BAK%20-%20Executive%20Summary%20Des%204.pdf |date=7 May 2006 }} Edinburgh itself is ringed by greenbelt land, which has seen developments such as the offices at Edinburgh Park and housing and commercial developments to the south of Edinburgh spring up on it.

• Economy of Scotland
• Economy of the United Kingdom
• Economy of the European Union
• Politics of Edinburgh
• Transport in Edinburgh

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• [http://www.edinburgh.gov.uk/economicstrategy Edinburgh's Economic Strategy] by City of Edinburgh Council

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Category:Economy of Edinburgh

Category:Economy of Scotland

Category:Economies by city