UK City firms report fastest turnaround in fortunes in 30 years

CBI figures showing surprise jump in financial sector's growth will be welcome news for Rachel Reeves

Britain's financial services companies have reported a strong recovery in activity at the start of the year, in a surprise boost to the government after a gloomy end to 2025.

Banks, insurers and investment managers said their businesses were growing, with a positive balance of nearly two-thirds noting an expansion, according to a long-running survey by the Confederation of British Industry (CBI), a lobby group. That contrasted with the negative balance of 38% in December, despite the start of the US-Israel war on Iran.