The Bank of England believes that Britain’s financial services industry might lose as many as 75,000 jobs after leaving the European Union (EU).
The figure is part of the bank’s “reasonable scenario” for the post-Brexit UK, where no specific financial deal is struck between the government of Prime Minister Theresa May and the EU, BBC reported Tuesday.
The report named Germany’s Frankfurt as the most popular destination for jobs leaving the UK, followed by French capital Paris, Irelands’ Dublin, Belgium’s Brussels and the Spanish capital Madrid being the other contenders.
The number is likely to change depending on the final trading the two sides agree upon, the report said, further warning that many jobs would still leave the country.
A recent survey by Reuters of firms the currently employ the bulk of workers in international finance showed that around 10,000 finance jobs were likely to leave the UK if it loses access to Europe’s single market.
The Bank of England, however, thinks the survey misses the mark by much and 10,000 will be the number of jobs that would leave on “day one” of Brexit.
In January, the chief executive of the London Stock Exchange, Xavier Rolet, warned that Brexit could cost London up to 200,000 jobs if May fails to provide a clear post-Brexit plan.
Although her government is under fire for lacking a specific roadmap to reach a divorce agreement with the EU before the March 2019 deadline, May has time and again made it clear that Brexit is a certainty and would eventually happen with or without a deal.
About 10,000 finance jobs will be shifted out of the UK or created overseas after Brexit, according to a new survey.
May has also been trying to contain a deepening row within her cabinet over what the terms of a possible deal with the EU should be.
The infighting has become apparent over the past weeks, with Foreign Secretary Boris Johnson and a number of other ministers contradicting each other about a range of issues, including the amount of a divorce bill that EU officials say the UK must pay.
The government’s chaotic approach to Brexit has angered the Tory government’s opponents in the Labour Party, allowing party leader Jeremy Corbyn to challenge May’s leadership by expressing readiness to take over the negotiations.