The Bank of England governor, Andrew Bailey, has announced a big expansion of its operations in Leeds, with one in 10 officials to be based in the West Yorkshire city within three years.

Bailey said the 70-strong team at the central bank’s northern hub would swell sevenfold to 500 by 2027 through a combination of voluntary relocation and local recruitment.

The Bank said its increased presence in Leeds was aimed at improving trust and wider understanding of its work across the UK, ensuring it better represented the public, and would help tap into wider talent pools across the country and retain talented colleagues.

Threadneedle Street’s links with Leeds stretch back 200 years, and it was among the earliest locations proposed when the Bank began considering establishing a network of branches in the 1800s. Three years ago, it announced plans to open a northern hub in the city, which is already one of the UK’s biggest financial centres outside London.

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.”

The Bank will aim to maintain its overall headcount – which stood at 4,971, according to its 2023 report and accounts – while expanding its numbers in Leeds.

The councillor James Lewis, the leader of Leeds city council, said: “We are delighted that the Bank of England has chosen to expand their office space in Leeds.

“Leeds is the UK’s second largest city for financial services, and a major hub for related professional services; this move further reinforces the city’s progress and influence and showcases the strength of Team Leeds and the partners across the private and public sectors, that come together to deliver brilliant results in a truly collaborative way, for the best impact on our residents.”