The number of jobs held by the financial services sector in London is set to fall to a 16-year low, as the UK capital's position continues to weaken as a finance centre, according to new research from the Centre for Economics and Business Research, an economic think tank.

According to CEBR, the number of jobs within the wholesale financial sector is now estimated to fall to 255,000 in 2012, compared with an estimate of 288,000 made six months ago, and a peak of 354,000 in 2007.