Bank of England sees up to 75,000 finance job losses
after Brexit: BBC
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[October 31, 2017]
LONDON (Reuters) - The Bank of
England expects Britain to lose up to 75,000 financial services jobs in
the years after the country leaves the European Union in 2019, the BBC
reported on Tuesday.
"I understand that senior figures at the Bank are using the number as a
'reasonable scenario', particularly if there is no specific UK-EU
financial services deal," the BBC's economics editor Kamal Ahmed wrote.
The BoE declined to comment on the BBC report.
BoE Deputy Governor Sam Woods told Reuters at the start of the month
that a figure of 10,000 job losses in a Reuters survey of banks' plans
was a reasonable estimate of the initial impact of leaving the EU.
The longer-term impact of Brexit on jobs in financial services was much
less certain, and depends on what deal Britain struck was able to reach
with the EU, Woods said.
But he added that he expected London will continue to be one of the
world's largest financial centers in the coming decades after some
politicians and economists predicted the City will lose its pre-eminent
status as a global hub for finance.
Britain's financial services and insurance sector employ 1.1 million
people, many focused on the domestic economy rather than cross-border
services that are likely to be most affected by Brexit.
The 75,000 figure in the BBC report is in line with a forecast from
human resources consultants Oliver Wyman of what might happen in a hard
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People walk past the Bank of England in London, Britain, October 17,
2017. REUTERS/Hannah McKay
Other forecasts for job losses have ranged from about 30,000 jobs estimated by
the Brussels-based Bruegel research group in February to as many as 232,000 by
London Stock Exchange chief executive Xavier Rolet in January.
Woods and his fellow BoE deputy governor, Jon Cunliffe, are due to speak to a
British parliament committee on Wednesday about the effect of Brexit on
The BoE has requested British-based financial services firms to prepare
contingency plans for Brexit.
Some firms have started to move staff out of London or expand operations
elsewhere in Europe, while others are waiting until early in 2018 to see if
Britain and the EU agree transitional arrangements to smooth Brexit.
British finance minister Philip Hammond has said the value of any transitional
deal will diminish if it is not secured by early next year.
(Reporting by David Milliken; editing by Guy Faulconbridge)
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