BoE has asked firms to submit contingency plans for a ‘no deal’ Brexit
The Bank of England (BoE) has warned that Brexit could result in England losing up to 75,000 financial services jobs.
According to BBC today, the Bank’s ‘reasonable scenario’ could worsen, depending on whether the UK leaves the union without a trade deal. Therefore, the BoE has asked firms to submit contingency plans for a “no deal” Brexit.
“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 stated, adding that the BoE thought the figure could vary depending on the terms on which Britain left the EU, and that 75,000 was at the upper end of projections provided by other groups.
The BoE has asked banks, hedge funds and other financial institutions to outline their contingency plans should Britain leave and have to fall back on World Trade Organisation (WTO) tariffs and rules.
According to media reports, the bank’s estimate applies to the next three-to-five years. It concludes that up to 40,000 jobs would be lost directly from financial services, and the rest would be lost in the legal and professional services sector.