Executive Briefings

Brexit: City of London Will Lose 10,500 Jobs on Day One, Says EY

City firms plan to move 10,500 jobs out of the U.K. on "day one" of Brexit, with Dublin and Frankfurt the financial centres most likely to benefit from the U.K.’s departure from the EU.

The job tracker compiled by the accountants EY, which counts job announcements to the end of November, found that the number of roles likely to be affected had fallen from estimates of 12,500 a year ago. But it also concluded that the jobs being affected by Brexit were not just the “back office” ones initially forecast, but “front office” staff who deal directly with clients.

Omar Ali, EY’s U.K. financial services leader, said last week’s announcement of a first-stage deal, allowing talks to move on to trade, had sent “a wave of relief across the City.”

“It signalled an intention to agree a transitional period as early as possible next year and the starting point for negotiations on future trade deals, both of which are fundamental to avoid adding any additional risks to the system and for the future strength of the U.K. financial services industry,” said Ali.

Major City firms have started to announce how they will respond to the U.K.’s exit from the EU after being told by the Bank of England to present contingency plans for all eventualities, including a “hard” Brexit. Last month Sam Woods, a deputy governor of the Bank, warned that 10,000 jobs could leave the City on “day one” after reviewing these plans.

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The job tracker compiled by the accountants EY, which counts job announcements to the end of November, found that the number of roles likely to be affected had fallen from estimates of 12,500 a year ago. But it also concluded that the jobs being affected by Brexit were not just the “back office” ones initially forecast, but “front office” staff who deal directly with clients.

Omar Ali, EY’s U.K. financial services leader, said last week’s announcement of a first-stage deal, allowing talks to move on to trade, had sent “a wave of relief across the City.”

“It signalled an intention to agree a transitional period as early as possible next year and the starting point for negotiations on future trade deals, both of which are fundamental to avoid adding any additional risks to the system and for the future strength of the U.K. financial services industry,” said Ali.

Major City firms have started to announce how they will respond to the U.K.’s exit from the EU after being told by the Bank of England to present contingency plans for all eventualities, including a “hard” Brexit. Last month Sam Woods, a deputy governor of the Bank, warned that 10,000 jobs could leave the City on “day one” after reviewing these plans.

Read Full Article