Go West!

Tax practitioners are going west. 2007 saw tax professionals migrating west out of from London on a hitherto unknown scale ñ a trend that is set to continue according to international recruitment consultancy GRS. And although tax practitioners are being drawn to destinations across the West Country and the most westerly corners of the South East, the stand-out tax relocation hot-spots are the high growth southern cities of Bristol and Southampton.

Angela Parker, a consultant with GRS Tax, said: ìBristol initiated the trend - Lloyds TSB, Orange and Dyson are all based there. But Southampton is also attracting talent out of London - the big 4 have long had a comprehensive presence in both Bristol and Southampton. Recently we have seen tax professionals start moving further southwest to Devon too ñ PWC and EY have a presence there. And the South West in general is full of finance, energy and telecom companies - there are many roles for tax professionals in both industry and practice here, and whatís more these opportunities do not present a step down in the standard of work.î

Bristol

Bristol is England's sixth most populous city with a GDP of approximately 9.44bn . With a GDP per head of 23,962 it is more affluent than the rest of the UK. Bristol has the second strongest economy in England outside of London when measured by GDP per head. The local economy is reliant on the financial services, aerospace and IT. 200 international companies have their HQs based in the city. Bristolís financial services sector employs 40,000 alone . Between 1995 and 2004 the number of jobs increased by 22.0% (London grew only 14.7%). As online working enables more of us to work more remotely from the traditional centre stages of business, and the desire for flexible working grows with each generation, Bristol in particular is a natural magnet for professionals in search of better work:life balance.

GRS says the economic pull of Bristol is not the only attraction for professionals seeking to leave London behind.

Angela Parker said: ìItís not only the jobs that are attracting tax professionals; theyíre also being tempted by the culture. Bristol was a finalist for the 2008 European Capital of Culture and is home to the Bristol Old Vic. Not only does it have a number of established galleries and theatres, professionals are flocking to the contemporary photography, cinema, and art exhibited in converted dockside warehouses there. Culturally, thereís very little that London has to offer that couldnít be found in Bristol, albeit in a more limited way. Thereís also the natural beauty of Clifton Gorge which London has nothing on.

ìFive years ago, tax professionals would have had to take a very substantial pay cut if they moved down to Bristol. But weíre now in a very candidate driven market and salaries have had to increase to attract the best talent. It helps that candidates can be guaranteed a quality client base with a level of work comparative to London. Most regional practice firms are undergoing rapid expansion within corporate tax currently. Part of the attraction for tax professionals is that the smaller regional offices present a more client-led service than you might typically find in London so candidates find they are able to connect with their clients more. The opportunities for career progression are often more transparent too. î

Southampton

The phenomenon is also witnessed in Southampton. It is the largest city on the south coast and has grown faster than any other town in the south (outside of London) in the last ten years. Between 1995 and 2004 the number of jobs increased by 18.5% . With only 2.4 % of the city's population claiming job seekerís allowance, unemployment is also low .

Specific benefits of Southampton listed by tax professionals moving down there are its vibrant nightlife, low cost of living, and cheap transport. Its low rate of petty crime is also seen as attractive by many London - the burglary rate per person is 0.8% in London, but only 0.2% in Southampton . A lot of tax professionals are also attracted by the costal location and its proximity to the New Forest.

Reasons

Although Bristol and Southampton are very different cities, the reason tax professionals are leaving London for them is almost always the same, says GRS.

Angela Parker said: ìPeople are being driven out of London and towards the booming cities in the west by the cost of housing as well as a strong desire for better work:life balance without compromising their career paths. The average house price in Southampton is almost 55% cheaper than the average in Greater London. But there are other reasons. A lot of people are fed up of Londonís horrific commutes. Furthermore, many tax practitioners also went to good universities in Southampton, Bristol and Exeter and are keen to move back.î

The migration is not restricted to tax professionals. 11% of the British population migrate around the UK every year ñ and a lot of them are trying to escape London. Although the capital is experiencing the fastest rate of population growth (largely due to the fact that 36% of all foreign immigrants set up home in the capital) British residents are moving out of the capital faster than any other area. According to research by estate agent propertyfinder.com, net migration of British citizens away from London stands at -116,200. Londonís British population is shrinking by 1.56% a year while the British population of the South West is growing at 0.67% a year as a result of internal migration.

The Future

Angela Parker says: ìThe trickle of tax professionals flowing west is growing ever stronger. It will continue to swell in 2008. Who knows, by 2010 I may have to head up a dedicated GRS Bristol tax team.î