BoE expecting up to 75,000 financial job losses from Brexit

Skyline/Megan Trace/flickr.com

(qlmbusinessnews.com via cityam.com – – Tue, 31 Oct 2017) London, Uk – –

The Bank of England is expecting up to 75,000 job losses in the event that there is no deal between the UK and EU financial services sector.

The number is the bank’s “reasonable scenario” and originates from an Oliver Wyman report published in 2016.

The estimate applies to the next three-to-five years. The bank estimates up to 40,000 jobs could be lost directly from financial services, and the rest would be lost in the legal and professional services sector.

The bank has been preparing for a possible “no deal” Brexit by asking firms to submit contingency plans for such a scenario.

Lobby groups such as TheCityUK have warned that the EU should not seek to diminish the UK as a financial centre in Brexit talks.

They have argued that the EU would not benefit if it weakens the Square Mile, as jobs would likely move to Singapore and New York rather than European cities such as Frankfurt.

By Helen Cahill