The Bank of England is accelerating the expansion of its Leeds operation as part of a wider drive to cut costs, reduce headcount and overhaul its London estate.
Under new plans approved by the Bank’s court of directors, half of all external recruitment will now be based in Leeds, as governors push to meet a long-standing commitment to station 500 staff in the city by 2027 – roughly one in ten of the Bank’s total workforce.
Minutes from the court show that executive directors have been instructed to allocate 50 per cent of new hires to the northern hub in order to “further progress” the regional expansion, even as the institution pursues an ambitious cost-saving programme.
The move comes amid plans to slim down the Bank’s overall headcount and deliver operating cost savings of 8 per cent in the next financial year, in an effort to limit the growth of levies charged to the financial services industry.
The Leeds push has been in train since the Bank announced five years ago that it would establish a major northern presence. A larger office opened in the city in 2023, and expansion has been driven through a mix of voluntary relocations from London and local recruitment.
Progress has been slower than initially hoped. As of December 2024, only 156 London-based staff had expressed an interest in relocating, despite the Bank offering up to £8,000 in expenses to encourage moves. There are currently just over 200 Bank of England employees based in Leeds.
Governor Andrew Bailey has previously described the Leeds office as an opportunity to better reflect the communities the Bank serves and to broaden its talent pool beyond London.
The expansion in Leeds is also closely linked to a major internal transformation programme following an external review of the Bank’s forecasting and modelling capabilities, led by Ben Bernanke. Officials have described the reforms as the most significant shake-up of the institution since it was granted operational independence in 1997.
As part of the restructuring, staff have been invited to apply for voluntary redundancy under a “mutually agreed resignation” scheme aimed at delivering sustainable savings. Employees based in Leeds are exempt from the redundancy process.
At the same time, the Bank is preparing to consolidate its London footprint. It plans to vacate 20 Moorgate, the headquarters of the Prudential Regulation Authority since 2012, when the lease expires in 2028. Most staff will be relocated to the Bank’s historic Threadneedle Street site, which is undergoing extensive renovation.
Directors described the overhaul of the Bank’s estate as a “once in a generation opportunity” to improve both its premises and its geographical reach. However, they also warned of reputational risks associated with the redevelopment, stressing the importance of a robust business case and clear communication, given the historic significance of the Threadneedle Street building.
The court noted that any future expansion of the Bank’s workforce could be accommodated by further growth in Leeds rather than additional space in London.
The Bank of England first opened a branch in Leeds in 1827 and is now based at Yorkshire House, a refurbished 1937 building. The city was chosen for its strong financial and professional services sector, access to commercial real estate, large higher education base, and growing strengths in data, artificial intelligence and green finance.
A Bank of England spokesperson said: “Our UK footprint ensures we best represent the public we serve, build stronger links across the regions, and attract a wider pool of talented workers. Over the coming years, we plan to consolidate our London locations and, in the meantime, continue to expand our presence in Leeds.”
The shift underlines how the central bank is seeking to balance regional expansion with fiscal restraint, as it modernises its operations and responds to growing scrutiny of costs, governance and public accountability.
Read more:
Bank of England accelerates Leeds expansion as part of cost-cutting overhaul