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BOE Expects Drop In UK Financial Services Jobs After Brexit - Reports

Robbie Lawther

1 November 2017

The Bank of England believes that up to 75,000 jobs could be lost in financial services following Britain's departure from the European Union, according to the BBC.

This comes just as, Lloyd Blankfein, chief executive, used social media platform Twitter to suggest his firm’s new London headquarters could be left partially empty due to Brexit. By contrast, UBS, the world's largest wealth management house, has reportedly said its "worst-case scenario" of having to shift 1,000 jobs out of London due to Brexit looked unlikely. (See that story here.)

The BBC understands 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 number could change depending on the UK's post-Brexit trading deal.

Currently, Britain and the EU are locked in negotiations over Brexit, and the discussions are looking likely to end at a no-deal agreement. This could mean no guaranteed access to the Single Market customs union, access to which is said to be critical for the services sector. At present, EU nationals can come and go to the UK without need for work visas and other permits required, for example, for a person working in Australia, the US and many other countries outside the bloc.

According to survey by CFA Society UK, 42 per cent of European Union nationals are confident they will continue to work in the UK investment management industry after Britain leaves the EU bloc.

Goldman Sachs
To ease the potential strains of Brexit, some firms are planning of moving their EU headquarters to Paris, Frankfurt or Dublin. One firm which has been very vocal on the want for a soft Brexit is Goldman Sachs.

Its CEO, Blankfein, tweeted a picture on Monday of its partially built European headquarters, near to St Paul’s Cathedral in London, and said that the company hopes to fill the building.

Blankfein tweeted: “In London. GS still investing in our big new Euro headquarters here. Expecting/hoping to fill it up, but so much outside our control.#Brexit”

This comes days after he tweeted about the firm’s positive visit to Frankfurt, where his firm could move its EU headquarters to, “Just left Frankfurt. Great meetings, great weather, really enjoyed it. Good, because I'll be spending a lot more time there. #Brexit”

Goldman’s £300 million ($396 million) hub in London covers 1.3 million square foot and is due to be completed in 2019.

Until the negotiations between the UK and the EU become a lot clearer, many financial institutions will have to make sure they have contingency plans for the worst case scenario that there is no-deal between the two.