Employment in the whole of the UK financial services industry is expected to set new records next year hitting 325,000, according to a new survey from the Centre for Economics and Business Research. The previous peak was 324,000 in 2000.

However, Douglas McWilliams, chief executive of the Centre for Economics and Business Research, a financial industry consultancy, said the hedge fund boom - which fuelled a 4.1% growth in fund management jobs in 2003 and a 3.6% climb last year - will stall this year.