The Bank of England is accelerating the expansion of its Leeds office as part of a wider drive to cut costs, reduce staff and redevelop its London base.
Under new plans approved by the bank’s board, half of all external recruitment will now be based in Leeds, as governors push to meet a long-standing commitment to base 500 staff in the city by 2027 – around one in 10 of the bank’s total workforce.
Court records show that executives were ordered to allocate 50 percent of new hires to the northern hub to “further advance” regional expansion, even as the institution pursues an ambitious cost-cutting program.
The move comes amid plans to reduce the bank’s overall headcount and achieve operational cost savings of 8 percent in the next financial year to limit the growth in levies charged to the financial services industry.
The push into Leeds has been in full swing since the bank announced plans to establish a major presence in the north five years ago. A larger office opened in the city in 2023 and expansion has been driven by a mix of voluntary moves from London and local recruitment.
Progress was slower than initially hoped. As of December 2024, only 156 London-based employees had expressed interest in moving, despite the bank offering up to £8,000 in costs to encourage moves. There are currently just over 200 Bank of England staff based in Leeds.
Governor Andrew Bailey has previously described the Leeds office as an opportunity to better reflect the communities the bank serves and expand its talent pool beyond London.
The expansion in Leeds is also closely linked to a major internal transformation program, which follows an external review of the bank’s forecasting and modeling capabilities led by Ben Bernanke. Officials described the reforms as the institution’s most significant transformation since it gained operational independence in 1997.
As part of the restructuring, employees were asked to apply for voluntary redundancy as part of a “mutually agreed redundancy plan” to achieve sustainable savings. Employees based in Leeds are exempt from the redundancy process.
At the same time, the bank is preparing to consolidate its presence in London. It plans to vacate 20 Moorgate, home of the Prudential Regulation Authority since 2012, when the lease expires in 2028. Most staff will be relocated to the bank’s historic site on Threadneedle Street, which is currently undergoing extensive renovation.
Directors described the redevelopment of the bank site as a “unique opportunity” to improve both the premises and geographical reach. However, they also warned of reputational risks associated with the redevelopment and stressed the importance of a solid business model and clear communication given the historic significance of the Threadneedle Street building.
The court found that any future expansion of the bank’s workforce could be managed through 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 in Yorkshire House, a renovated building dating from 1937. The city was chosen for its strong financial and services sectors, its access to commercial property, its large higher education base and its growing strength in data, artificial intelligence and green finance.
A Bank of England spokesman said: “Our presence in the UK ensures we best represent the public we serve, build stronger connections between regions and attract a larger pool of talented workers. Over the coming years we plan to consolidate our London base and in the meantime continue to expand our presence in Leeds.”
The shift underscores how the central bank is trying to balance regional expansion with fiscal restraint as it modernizes its operations and responds to increasing scrutiny on costs, governance and public accountability.
