Brexit: 10,000 finance jobs to leave UK, new survey finds | The independent


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Around 10,000 financial jobs will be moved out of Britain or created overseas over the next few years if the UK is denied access to the European single market, according to a Reuters survey of companies employing the major part of international finance workers.

The survey showed that Frankfurt was by far the most popular destination for new roles, with Paris far behind.

The results of 123 companies come from the first comprehensive public inquiry to ask Britain’s biggest banks, insurers, asset managers, private equity firms and stock exchanges on specific details of their plans so far in the event of Brexit says ” hard “. .

The solicitation was conducted by email and telephone interviews between August 21 and September 15, weeks after the companies submitted detailed plans on their Brexit preparations to the Bank of England as required on July 14. The Bank declined to comment on the results of this investigation.

Almost half of the companies surveyed told Reuters they would have to move staff or restructure their businesses due to Brexit, which is expected to take place in March 2019. Another third said it would have no impact, and others said they were still deciding their plans or declined to comment.

The number of jobs to be moved or created abroad was based on responses from 39 companies employing at least 350,000 people. Around 1.1 million people work in the UK financial sector.

The results suggest that the first wave of Brexit job losses could be at the lower end of estimates from lobby groups and companies in the sector, which could mean London will retain its place as the continent’s top financial center, from the less in the short term.

However, most respondents said larger moves could be expected in a decade or more.

“If this is to happen, it will not be in a big bang,” said a senior executive at one of Europe’s largest banks, which took part in the investigation. “There will be a slow flight of jobs from London over a number of years.”

The survey also suggests that some financial institutions may delay their decisions, in the hopes that a soft Brexit can be negotiated as part of the ongoing talks in Brussels. BoE Governor Mark Carney specifically warned companies against this approach, saying it’s important to start planning now.

“They would like to think that there will be a mutually easy way to process financial services across the EU-UK border,” said Andrew Gray, global Brexit manager for financial services at PwC.

“So companies are struggling to land on specific plans. “

One of the biggest issues in Brexit talks is London’s future as Europe’s leading financial center, as the sector is the biggest source of tax revenue for UK companies.

Reuters

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