Brexit impact: Axe likely to fall on 30,000 jobs in UK's finance sector

Brexit will have its worst impact on the finance sector of the United Kingdom as the axe is likely to fall on 30,000 jobs across the country.

FP Staff February 08, 2017 13:47:45 IST
Brexit impact: Axe likely to fall on 30,000 jobs in UK's finance sector

Brexit will have its worst impact on the finance sector of the United Kingdom as the axe is likely to fall on 30,000 jobs across the country. Earlier in January, speculations were rife that banks had started moving jobs out of the Britain after British Prime Minister Theresa May made it very clear that there would be a clean break with the European Union.

According to The Guardian, London stands to lose 10,000 jobs in banking and 20,000 positions in accountancy, law and consulting, as European Union clients move enterprises worth €1.8tn (£1.6tn) to the continent after Brexit.

Brexit impact Axe likely to fall on 30000 jobs in UKs finance sector

A protest against Brexit in London. AFP.

A Brussel-based thinktank said Frankfurt stands to gain as the primary winner, with Amsterdam, Paris and Dublin also reaping rewards. But the researchers warn that having a more geographically divided spread of financial institutions could heighten the risk of a banking meltdown in the event of an acute financial crisis.

However, at the beginning of the year, The Telegraph had reported that 4,00,000 jobs will be created if Britain moves out of the European Union. An analysis by Change Britain, a group supported by Michael Gove, said that leaving the customs union of the and striking trade agreements with just eight foreign countries will create hundreds of thousands of jobs in manufacturing and service industries.

May had told CNN that Brexit meant the U.K. would also cease to be a member of the European Union's single internal market.

Up to 1,000 of UBS's, 5,000 employees in the UK will be moving to Europe, the bank's chairman, Axel Weber, told CNN Money at the World Economic Forum in Davos. HSBC, which is Britain's largest bank, said it could also take roughly 1,000 jobs to Paris. The bank CEO Stuart Gulliver stated the affected staff generate roughly 20% of its UK-based trading revenue.

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