Bank of England Expands Presence in Leeds to Enhance Regional Engagement

The Bank of England has announced plans to significantly increase its workforce in Leeds, a move aimed at bolstering its regional presence while strategically reducing costs. This initiative is part of an ongoing effort to establish a northern hub, with ambitions to employ 500 staff in Leeds by 2027, representing around ten per cent of its total workforce.

According to minutes from a recent meeting of the Bank’s court of directors, executive directors have been instructed to ensure that 50 per cent of all new hires will be based in Leeds. This decision underscores the governors’ commitment to creating stronger connections with the local community and enhancing the Bank’s operational capacity in the north.

The initiative seeks to combine voluntary relocations from London with local hires, aiming to make Leeds a central focus of the Bank’s northern operations. As of December 2024, only 156 employees had expressed interest in relocating, prompting the Bank to offer financial incentives of up to £8,000 to encourage staff to make the move.

Currently, there are over 200 staff members in the Bank’s Leeds office, with plans to continue expanding this presence. Governor Andrew Bailey emphasized that the increased office space would allow the Bank to better represent the broader public and to cultivate relationships within the local business ecosystem.

The push for growth in Leeds comes amidst larger plans to streamline the Bank’s operations, which include a transformation programme aimed at enhancing forecasting accuracy. This review was led by Ben Bernanke, former chairman of the US Federal Reserve. The Bank is also pursuing voluntary redundancy as part of its cost-saving measures, although Leeds staff are exempt from this scheme.

The Bank’s long-term strategy involves saving eight per cent in operating costs to manage industry levies effectively. Moreover, it plans to relocate its Prudential Regulation Authority from its current Moorgate office, reducing its presence in the City of London. By consolidating its operations and growing its headcount in Leeds, the Bank seeks to position itself better in a competitive financial landscape.

This expansion reflects the Bank’s historical relationship with Leeds, dating back to its first branch opening in 1827. The region’s strong financial services sector, commercial real estate opportunities, and academic institutions provide a fertile ground for building a skilled workforce that meets the Bank’s future needs.