Bank of England confirms ‘No Deal’ is no good

Today the BBC is reporting Bank of England projections that 75,000 financial services jobs across the UK could be at risk without a specific UK-EU financial services deal following Brexit.

Commenting on the news Miles Celic, Chief Executive Office, TheCityUK, said,

“This is another reminder that a no deal Brexit will be no good for the industry, for customers or the economies of the UK and the EU. The number of jobs the Bank of England suggests are at risk are consistent with the analysis we commissioned from Oliver Wyman last year. Their showed that if the UK’s access to the EU’s market is defined by WTO rules, an estimated 35,000 jobs in financial services could be at risk, with up to 75,000 across the wider financial and related professional services ecosystem, along with up to £10bn in tax revenue and £38bn in revenue.

“It is vital that the EU and the UK avoid such a ‘no deal scenario’. This outcome will see few winners, with UK and EU customers likely to bear the brunt in the form of reduced choice and cost increases. While some of the UK’s business activity may fragment and scatter across Europe, most is likely to go to other major international financial centres such as New York or Singapore, or simply stop altogether.

“For our industry, the most urgent priority remains agreeing a time-bound Brexit transition period. EU and UK negotiators must discuss and agree a status quo transitional deal as soon as possible if it is to hold any real value for our industry. Once businesses start moving, there is no reverse gear. It is simply not efficient or economically viable to move operations twice.”

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Notes to editors

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