The Empire State is losing its grip as the nation’s financial services capital.
New York’s financial services industry – a great contributor to the state’s gross domestic product – has been imperiled by the plummeting population of high-income residents, who are fleeing amid towering taxes and rising housing costs, according to a sobering new study.
“As other states attract talent and investment in the sector, there is no guarantee of future success,” said the report from the Business Council of New York State.
“Addressing the states tax burden, business climate, and cost of living can help to ensure New Yorks position as a national and global leader for finance.”
Over the last three years, the top four states landing new high-paid financial services and insurance jobs over the last three years were Texas, Florida, North Carolina and Georgia, the analysis conducted by the Business Council found.
New York ranked 36th in terms of percentage growth — at a rate of a puny two-tenths of 1%.
“North Carolina and Florida have rapidly added jobs in the finance and insurance sector while New Yorks employment has remained below national growth trends,” the report said.
Each finance sector employee generates nearly an additional three jobs in other sectors — so any loss of employment ripples through the entire economy, the study noted.
“This report should serve as a call to action for leaders across New York to forcefully address the competitiveness issues that threaten one of its most valuable and critical economic forces, the finance industry,” the study said.
The average compensation package in New York’s financial services industry is a nation-high $309,000 per year — $275,800 in salary plus $34,000 in other benefits.
The figures showed continuing trends of population decline in New York – with a 2.7% decrease from 2019 to 2022 — marking the worst loss among the 50 states during the COVID-19 pandemic.
Most of the population loss was in New York City and its suburbs, home of most of the state’s wealthiest residents.
A review of net migration of residents showed that the largest flight of gross income was from Manhattan at nearly $11 billion.
“The data confirms the flight of the wealthiest from the New York City area,” the business group’s review found.
In 2021 alone, the Empire State saw a net decline of $9.8 billion in income that migrated to Florida, according to the report.
It’s not a coincidence, the study said, noting that the Tax Foundation think tank rates New York as having the highest combined state and local tax rate on residents, and the Sunshine State the lowest.
“This single competitive factor [taxes] is likely playing an influential role in the migration of high-net-worth individuals as they have the most to gain by leaving a high-income tax state for a low, or zero, income tax state,” the study said.
It also pointed out that New York is also one of a small collection of states that levies a tax on estates, derisively referred to as the “death tax.”
“High-wealth individuals are likely factoring this tax into their location decisions,” the report said.
“Forceful action is necessary,” the analysis concludes. “The state will need to address the tax burden, business climate, and cost of living issues that hurt the states competitiveness.
“If the state does not address these issues, it risks losing its dominance in the finance and insurance industry, and ultimately, jeopardizes the health and prosperity of New Yorks economy.”
Rachel Reeves was never going to resign over her failure to apply for a permit to rent out her house in south London.
She is unlikely even to face a fine from Southwark council – the mea culpa from the estate agent will have absolved her of much of the political guilt.
The episode is a distraction from the far bigger challenge she faces ahead of next month’s budget – and the £30-40 billion black hole.
But that doesn’t mean this squall should be ignored entirely – for it tells us two important things.
The first is it reminds us of of one of Ms Reeves‘ traits that is at odds with the vibe she likes to present to the country: that she is not always as across the detail or on top of things as she would like to make out.
The chancellor first said she was not advised to get a permit by a letting agent, so did not do so. Then, 24 hours later, she said that she was told by the letting agency it would take care of a permit, and did not realise it had not.
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‘Looks like an inadvertent error’
But is that quite good enough, particularly for someone who campaigned to strengthen exactly this law and who ended up deriving financial benefit for not doing so, to quite evidently not be across the detail?
In the aftermath of Angela Rayner’s resignation for a failure to comply with property law, might it not have been worthwhile for one to double-check the paperwork of one’s second home?
Then there have been other incidents in Ms Reeves’ life outside of being chancellor that jar with the image of a super-efficient stateswoman.
Ahead of the election, Ms Reeves was forced to hold her hands up and acknowledge making mistakes in her new book about female economists after she faced allegations of plagiarism.
She admitted that some sentences in her book, The Women Who Made Modern Economics, were “not properly referenced in the bibliography”.
She also had to update her LinkedIn after it emerged she was not an “economist” when she worked in financial services at a bank.
Image: Sir Keir Starmer speaks in the House of Commons
For a chancellor who faces making momentous decisions that will affect everybody in this country, lack of attention to detail is not a characteristic she would want extensively dwelt on. The bigger story this tells about her will sting.
The second thing it tells us is just how central she is to the Starmer project.
Number 10 moved to protect her within hours – publishing an exchange of letters late into Wednesday night that relied just on the account of Ms Reeves and apparently without corroborating evidence.
The government machine went out of its way in the fastest possible timeframe to try and shut the matter down – a courtesy not extended to Angela Rayner or Louise Haigh.
This is because Sir Keir knows a Reeves departure risks exposing himself – weeks before a budget that could determine this prime minister’s fate.
It also risks an adverse reaction in the bond markets, which fear higher-borrowing alternative candidates in the Treasury.
Neither outcome is one this government feels like it could cope with at the moment.
Rachel Reeves is quite simply the most important figure in Sir Keir Starmer’s administration, and this is why she is protected at almost any reasonable cost.
While this is true now, it may not always be this way, however. Will Sir Keir feel the same after 26 November when he has to defend the tax-raising budget?
For Shelley Mclean, every night is a sleepless one, just to keep her 11-year-old daughter alive.
Missy was born with a rare genetic condition that affects her breathing, digestion and movement.
She spent the first nine months of her life in hospital before coming home with a breathing tube in her throat, a feeding tube in her stomach, and a line into her bowel.
At first, the family had some NHS-funded nighttime care to help keep Missy safe while she slept.
But when her local NHS body decided she no longer met the threshold, that support was taken away.
Image: Missy has a breathing tube in her throat, a feeding tube in her stomach, and a line into her bowel
Now, Missy’s mother is responsible for her care.
“I’m her nurse, her physio, her carer,” says Shelley. “I don’t sleep properly because I’m scared she’ll stop breathing.
“They say we don’t meet the threshold – but I don’t know what more they need to see.”
Every night, Shelley prepares Missy’s medicines, checks her tubes, and monitors her breathing.
“This is an epilepsy medicine,” she says, holding up a syringe.
“If she’s not tolerating food orally, I put it down the tube.”
Despite her exhaustion, Shelley is grateful for the care that once saved her daughter’s life.
“I’m very grateful the NHS saved Missy – she wouldn’t be here without them. But they’re crippling the parents.”
Image: Shelley Mclean cares for her daughter Missy round the clock
The postcode lottery
Children like Missy who leave hospital but still need intensive support are meant to receive what’s called NHS continuing care – specialist help for those with the most complex, life-limiting or life-threatening needs.
But Sky News has seen new data which shows access to this care is deeply inconsistent across England, creating a postcode lottery that leaves many families struggling to survive without the help they require.
New figures obtained by Sky News reveal just how uneven continuing care has become.
NHS spending on children’s continuing care ranges from just 80p to £6 per head depending on where families live.
Out of almost 100,000 children in England with a life-limiting or life-threatening condition, only around 4% – roughly 4,400 – receive NHS continuing care funding.
And more than half of all disabled children referred for this kind of support are rejected.
Anna Bird, chief executive of charity Contact, says the system is leaving thousands of families on the brink.
“We’re not seeing the commitment to make sure those who need continuing care are getting it,” she told Sky News.
“Our research shows there’s a huge postcode lottery – families are running kind of little hospitals at home just to keep their children well and alive.
“They’re being let down by continuing care, and they’re not getting the support they need.”
In some areas, campaigners say local NHS bodies have cut back on support even for children with the most serious medical conditions.
Parents report being told their child no longer qualifies for help despite their needs remaining unchanged.
For Shelley, that decision means she rarely sleeps through the night.
“If I don’t go to her, she could be dead,” she says quietly. “She could have a fit and… you know, she could be dead.”
Image: Shelley, Missy and her brother
In a statement, NHS Cheshire and Merseyside said: “We understand Ms Mclean will be disappointed with the decision relating to her daughter’s funding.
“While we’re unable to comment on individual cases due to our commitment to patient confidentiality, all patients are reviewed jointly by health and care professionals to ensure they are receiving the most appropriate care for their needs.
“Patients who wish to discuss their funding decision are able to contact NHS Cheshire and Merseyside using the contact details included in their patient letters.”
But campaigners say that without national standards – and without the law forcing consistent assessments – those reviews will continue to vary wildly from one area to the next.
The result is that parents like Shelley find themselves trapped between two systems – the NHS and social care – neither of which can agree who is responsible.
“I’m not the type of person who wants to ask anyone for help,” she says. “But it’s brought me to my knees.”
For Shelley, that gap is more than bureaucratic. It’s personal, relentless, and exhausting.
“I would invite them to come and have a week in my position – to try to wake up every hour, on the hour, every night. Then they might understand.”
Campaigners say no parent should have to shoulder that burden alone – and they want ministers to act.
They’re calling on the government to make continuing care a statutory entitlement, with consistent assessments, proper funding, and transparency about who gets help and who doesn’t.
Until then, families like Shelley’s will continue to do the work of the NHS from their own homes – unpaid, unsupported, and exhausted.
Image: Shelley feeding Missy
The Department for Health and Social Care said: “Our thoughts go out to Shelley and Missy – everyone should have access to high-quality, compassionate care.
“As part of our 10-Year Health Plan, the government is shifting more healthcare out of hospitals and into the community, to ensure patients and their families can get the care they need, where and when they need it.
“Integrated Care Boards are responsible for meeting the needs of local people – including Children and Young People’s Continuing Care and ensuring the care requirements of people like Missy and Shelley are met.
“This government has set out best practice, and provided guidance around assessments, decision-making and agreeing care packages for Children and Young People’s Continuing Care.”