31 Oct 2017
Bank of England believes Brexit could cost up to 75,000 jobs
The BBC has reported that senior figures at the Bank of England (BoE) believe up to 75,000 jobs could be lost in the UK’s financial services industry as a result of the Brexit fallout.
It is thought that the BoE is expecting a large amount of financial services jobs to transfer to the continent – and the number of 75,000 is based on a scenario where no deal in financial services is reached between the UK and the European Union (EU).
Of the likely destinations in the EU for these jobs, Frankfurt is thought to be the most popular, along with Paris and Dublin.
The BoE has already asked firms in financial services to put in place contingency plans to cater for the possibility of having to trade under World Trade Organisation (WTO) rules, which would mean banks and other institutions would lose “passporting” rights, which enable them to operate across the EU.
However, despite this, some City experts still believe that the UK would remain the global financial centre, due to its strong capability in executing global market deals.
Since the referendum, many banks have downgraded the amount of jobs they are looking to move out of the UK post-Brexit.
JP Morgan initially claimed that 4,000 jobs would move abroad, but has since revised the number down to 1,000. Similarly, UBS now says as few as 250 jobs will have to leave the UK, whereas the initial figure was 1,000.