‘City’s F&P sector can thrive, but not in isolation’

LIVERPOOL’s financial and professional services sector is expected to be a major growth area for the city, despite the challenging economic environment, a report reveals.

In a study commissioned last year by the Liverpool City Council and produced by business advisors Ernst & Young.

Future growth should be targeted at attracting more companies involved in asset, fund and wealth management,  and winning out-sourcing deals in the banking and financial services sector, E&Y said.

There are also opportunities in the growth of the low carbon economy, the expansion of the port of Liverpool and the city’s knowledge economy.

The report – which was produced before this year’s general election and therefore takes no account of the impact of spending cuts by the new government – which has hit Liverpool’s own professionals services body Professional Liverpool particularly hard, believes Liverpool should not work in isolation, but look to forge links with other cities, notably Manchester.

It says: “The key to the success of the Liverpool city region is about market reach and ambition.

“The proximity of Manchester has stifled the market development of the Liverpool city region and the growth of its companies, but with a different geographic perspective the LCR can grow alongside Manchester and also provide a complementary offer in its own areas of strength and expertise.

Nathan Marsh, a director at E&Y in Liverpool, who was speaking this morning on an panel at the Liberal Democrat conference about the Liverpool economy told TheBusinessDesk: “Despite short term issues there is considerable growth potential in financial and professional services in Liverpool.

“The message though is that Liverpool will not thrive by going it alone, and needs to work with other cities and other institutions like the City of London to promote its advantages such as the large population catchment area, the capacity of the transport network and potential future commercial developments.”

Mr Marsh, who was in China last week for the World Expo in Shanghai believes UK financial and professional services sector is well-placed to harness the huge power of China’s growth.

He said: “No country or region exists in isolation any more. Chinese growth needs and wants the UK’s skills, specialism and advice in finance, banking and professional advice.”