The Bank of England has announced an expansion of its Leeds office – with one in 10 staff set to be based in the city within three years.

Its governor, Andrew Bailey, said the bank’s northern hub would grow from a team of 70 to 500 by 2027.

The bank’s overall headcount will remain the same, with the expansion in Leeds coming from both voluntary relocation and new hiring.

West Yorkshire mayor Tracy Brabin called the move a “vote of confidence”.

The bank, which employs 4,971 employees, said increasing its presence in Leeds was aimed at improving “trust and wider understanding of its work across the UK” and ensuring it “better represents the people it serves”.

Mr Bailey said: “Committing to a permanent, expanded Leeds office is a fantastic opportunity for us better to represent the public, build stronger links with the local business community and help promote the work of the bank to a wider pool of talented workers.”

Mrs Brabin said: “This decision from the Bank of England is a major vote of confidence in our region, cementing our reputation as England’s leading banking capital outside of London, and opening up hundreds of local jobs for our talented graduates and professionals.

“By bringing decision-making power from London to the heart of the North, this move will benefit the entire country and help us rebalance our national economy.”