Britain to lose far fewer financial service industry jobs after Brexit than feared
Losses to the City of London's and Britain's finance sector was a central plank of the Project Fear's campaign to stay in the EU
BRITAIN’S financial services industry will lose far fewer jobs because of Brexit than first feared, the City of London have declared.
The corporation that runs the Square Mile said yesterday the number of postings shifting overseas because of our EU exit is “now likely to be at the lower end of estimates”.
And their policy chief Catherine McGuinness suggested it could be possibly as few as 5,000 – down from doomsday referendum predictions of more than 75,000.
Crippling loses to the City of London and Britain’s finance sector – which accounts for about 12 percent of country’s economic output – were a central plank of the Government’s campaign to keep Britain in the EU, branded Project Fear.
The backtrack came as new City Minister met with London banks and firms to reassure them about Brexit.
Tory John Glen – who was promoted as last week’s reshuffle – is the fourth politician to be handed the financial services and Brexit brief since July 2016.
But Mrs McGuinness said the Government were starting to listen to the City, adding: “The signs are positive, it is clear that the government is not only listening, but has understood our position.”
“But now we have to persuade the EU27 to strike a deal which works for this sector,” she warned in an interview to Reuters.
On Thursday the Ex-Governor of the Bank of France Christian Noyer conceded that Britain will remain Europe’s largest financial centre, despite Brexit.
Mr Noyer, who is leading French efforts to persuade banks to pick Paris as a location after Brexit, said:“The City will remain very important.”
He added: “I don’t think it should be a nightmare like it sometimes appears to be in some articles.”
Mr Glen said he used his meeting with City chiefs to urge them to “look beyond” Brexit.
He told The Sun: “Britain is the financial services centre of the world and I am determined to maintain this leading position at what is a crucial period for the industry.
“The sector employs over a million people across the nation and its tax take – around £72bn last year- is essential for helping to pay for our hospitals, roads, parks and schools.”
A leading euro MP said it was “certain” that EU countries would seek a post-Brexit deal on banking when trade talks begin.
Polish MEP Danuta Hubner, who is chair of the EU Parliament’s well connected Constitutional Affairs Committee, made the remarks on a visit to London yesterday.
Her comments fly in the face of threats made by the Commission’s negotiator Michel Barnier, who previously insisted there was “no place” for financial services. And the followed French President
Emmanuel Macron’s dig at the UK on Thursday when he said Britain would have to pay up if it wanted to retain single market access for the City post-Brexit.
Addressing the Institute for Government in London, Ms Hubner said the EU would be seeking a “specific and additional” agreement on the banking sector.
She said: “We are thinking that it will have to be something truly separate. Maybe it will be somehow linked to free trade, but certainly there will be something on the financial services, that’s clear.”
The leading MEP said such a pact would require the UK and EU agreeing on “equivalence” of rules and that this “would require a lot monitoring and enforcement mechanism”.