No Brexit deal will cost us 10,000 jobs on Day 1
But Davis says any agreement will favour EU
THE Bank of England have warned of 10,000 job losses in the finance sector on “day one” of a no-deal Brexit.
They believe up to 75,000 jobs could be lost in financial services following Britain’s departure from the EU.
But if Britain crashes out of Europe, they say thousands of posts, mostly in London and Edinburgh, would simply disappear.
The bank have asked UK financial institutions to make contingency plans in case Britain ends up trading with the EU under World Trade Organisation rules after a “hard Brexit”.
Some experts say hundreds of thousands of jobs could move to the Eurozone if Britain is left without a trade deal.
The Bank of England are reported to have taken a “reasonable” estimate of 75,000 jobs being lost.
But that would still leave London as the largest financial centre in Europe, with more than a million people employed in the sector across the UK.
The financial warning came yesterday as hardline Brexit negotiator David Davis briefed ministers on preparations for the UK leaving the EU if deadlocked talks aren’t moved on.
Up to 8000 extra civil service jobs will have to be created to deal with the upheaval – and Davis told the Cabinet a “huge cross-government effort” was under way.
Nearly 3000 new posts have already been created – including 300 lawyers to pore over the legal ramifications.
Brexit Secretary Davis said Her Majesty’s Revenue and Customs are set to recruit between 3000 and 5000 new members of staff next year.
If the new recruits earn an average of £50,000 each, the wage bill would top £400million – but a spokesman for Prime Minister Theresa May said: “We will make sure we have the resources required to make a success of leaving the EU.”
Davis also admitted yesterday that any Brexit withdrawal agreement will “probably favour” the EU.
Labour MP Ian Murray said: “In February last year, David Davis was saying Britain would have far more to gain from Brexit, while the EU would have more to lose.
“Now, just over a year later, he’s saying the exact opposite.
“People have the right to look at the reality of Brexit and ask if it matches the promises made by the Leave side. If it doesn’t, people have the right to change their minds.”
Labour will today force a binding vote in the Commons requiring ministers to hand over 58 studies on the economic impact of Brexit.
Shadow Brexit secretary Keir Starmer said: “Ministers cannot keep withholding vital information from Parliament about the impact of Brexit on jobs and the economy.”
The SNP’s Ash Denham added: “For them to ignore calls to publish these when jobs and our economy are at risk is not just pig-headed – it’s the act of a reckless, irresponsible Government.”