Brexit fears OVERSTATED? City of London says as few as 5000 jobs may go when UK leaves EU – Express.co.uk
Previous estimates pointed to a gloomy outcome, with some predicting tens of thousands of roles at risk.
But the new internal city report, compiled by the City of London Corporation and due for release in September, says the UK financial sector could suffer just 5,000 job losses.
Speaking to POLITICO, Lord Mayor of the City of London Charles Bowman confirmed that the new report estimates between 5,000 and 13,000 jobs will go by March 30 next year, the date the UK leaves the EU bloc.
The Lord Mayor also confirmed that 1,600 jobs have already been earmarked to move out of Britain.
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The figures will see some city workers breathe a sigh of relief, showing a more positive outcome than Oliver Wyman’s widely cited report in 2016.
The company wrote industry job losses could be as high as 75,000, with banks and other institutions forced to move large numbers of staff to locations in the EU27.
And Xavier Rolet, the former chief executive of the London Stock Exchange, predicted job losses of over 200,000 UK-wide.
But those fears have been downplayed by the Bank of England, which also said “Day One” job losses may hit around 10,000 in the case of a hard Brexit.
A reason for the more positive outcome is the previous figure of 75,000 took into account a “no-deal’ scenario when the UK leaves the bloc.
The outlook for job cuts in the city of London looks brighter post-Brexit (Image: GETTY)
But the most recent analysis takes into account the standstill transition period that was provisionally agreed in March.
This provisional deal would see the UK bound by EU rules, but without full representation in Brussels.
The transition will not happen if an agreement cannot be thrashed out between the UK and EU on issues such as the hard border to Northern Ireland and the fate of the customs union.
But the city feels that the transition period is a done deal.
Mr Bowman said: “We will be working with all our stakeholders in the weeks ahead to determine what that looks like.”