BoE predicts Brexit could hit 75,000 UK finance industry jobs: BBC

The Bank of England has estimated that the UK’s financial services industry could lose up to 75,000 jobs as a result of Brexit, according to a BBC report.

In its report today the BBC said senior figures at the Bank are using the 75,000 number as a “reasonable scenario”, based on a situation in which no specific deal can be struck between the UK and the EU with respect to the financial services industry.

As this publication has been reporting ever since the referendum on the UK’s continued membership in the European Union was held last June, numerous officials and major financial services companies have warned of the potentially large numbers of financial services jobs that could move to the Continent as a result of the UK’s departure from the EU. In July, for example, Deutsche Bank said it could move “vast parts of its London operation back to Frankfurt” when the UK leaves, depending on the deal that is agreed.

Frankfurt and Paris are seen as the most popular destinations, with Dublin, Brussels, Luxembourg and Madrid other contenders.

And last week Goldman Sachs boss Lloyd Blankfein delivered a hint that Frankfurt is set to become a key European base for the US financial giant post-Brexit.

He tweeted: “Just left Frankfurt. Great meetings, great weather, really enjoyed it. Good, because I’ll be spending a lot more time there. #Brexit”.

The company, which is known to have taken office space in Frankfurt, Goldman Sachs currently employs about 6,000 people in London.

Luxembourg backing

As reported, despite being linked to benefiting from the UK financial services exodus, Luxembourg took the perhaps unusual step of backing the City, urging companies not to make panic moves out of London, in a statement last week.

The BBC report also said that the Bank of England believes the 10,000 jobs figure is likely to be the “day one” of Brexit number if no deal is struck.

Estimations of the number of jobs that could be lost in financial serves due to Brexit have differed, depending on the source.

In January, the chief executive of the London Stock Exchange, Xavier Rolet, predicted that Brexit could cost the City of London up to 200,000 jobs if the UK government fails to provide a clear plan for post-Brexit operations.

And a recent Reuters survey of firms employing the bulk of workers in international finance showed last month that around 10,000 finance jobs would likely be shifted out of Britain or created overseas in the next few years if the UK is denied access to Europe’s single market.

There has been no official comment from the Bank of England on the matter at time of going to press.

ABOUT THE AUTHOR
Gary Robinson
Head of Video and Ezines at Open Door Media Publishing. Deputy Editor, International Investment. An experienced journalist and filmmaker with more than 20 years' financial services experience, both as journalist and originally as a fully qualified IFA, Gary works across both International Investment and InvestmentEurope titles. Previous video production credits include projects on BBC, C4 and SKY.

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