Jessica Fino 31 Oct 2017 12:49pm

BoE expects 75,000 finance job losses after Brexit

Britain could lose up to 75,000 financial services jobs after Brexit, the Bank of England has projected

According to the BBC, the BoE expects substantial job losses once the UK leaves the EU, while many other jobs will likely move to the continent.

BBC’s economics editor Kamal Ahmed said he understood senior figures at the BoE are using the number as a “reasonable scenario”, but this could change depending on the post-Brexit trading relationship agreed during the negotiations.

The BoE and the Financial Conduct Authority (FCA) has also asked banks and hedge funds to provide their contingency plans in the event of a “hard Brexit”.

A Reuters report found last month that around 10,000 financial services jobs could be moved elsewhere if the UK fails to secure full access to the single market as part of Brexit negotiations. Almost half of the 123 surveyed said they were thinking about moving staff or restructuring their businesses as a result of Brexit.

But the BBC said the bank believes the 10,000 jobs losses are likely to happen on day one of Brexit if the government choses a hard Brexit route.

However, the Bank believes London is still likely to remain as the most attractive centre after Brexit.

According to the 22nd Z/Yen Global Financial Centres Index published last month, the gap between London and second placed New York widened despite the ongoing uncertainty from the Brexit negotiations.

London fell two points on the index to 780 out of a possible 1,000, while New York plummeted by 24 points to 756.

Frankfurt, Paris and Dublin, which are all jostling to attract the fall-out from London post Brexit, did not feature in the top 10 even though all three had gained points. Frankfurt was highest placed at number 11, having moved up 12 places since the last survey. Both Paris and Dublin moved up three places to 26th and 30th respectively.

Earlier this year, reports said Citigroup chosen Frankfurt as its new European hub post-Brexit, relocating 250 London jobs in order to secure its passporting rights.

These reports followed other rumours that other major banks like Standard Chartered and Nomura were choosing the German city to set up their new EU headquarters.

If the UK leaves the single market after Brexit, banks and financial institutions based in the UK could lose their passporting rights, which allow them to do business across the bloc’s 27 remaining members.