5,000 fi­nan­cial jobs to leave UK for Con­ti­nent

The Daily Telegraph - Business - - Business - By

ABOUT 5,000 fi­nan­cial ser­vices jobs are ex­pected to leave Bri­tain by Brexit day next March, the City min­is­ter in the Trea­sury has said.

John Glen told MPs he would do all he could to pre­vent larger num­bers re­lo­cat­ing, but agreed with a Bank of Eng­land pro­jec­tion that 5,000 would move to the Con­ti­nent ini­tially.

The warn­ing came as City watch­dog the Fi­nan­cial Con­duct Author­ity (FCA) pub­lished more than 900 pages of preparatory work for a no-deal Brexit, as part of two sep­a­rate con­sul­ta­tions with fi­nan­cial firms run­ning un­til De­cem­ber.

Sep­a­rately it emerged that lenders have been asked by the Bank of Eng­land to pro­vide six-hourly checks on bal­ance sheets in the days af­ter any no-deal Brexit to help avert a cash crunch for con­sumers and com­pa­nies.

Mr Glen told a House of Lords com­mit­tee: “My sole ob­jec­tive in re­spect of the City is to en­sure as much con­tin­u­a­tion as pos­si­ble in re­spect of eco­nomic value able to be gen­er­ated by the City.”

He “fully ex­pects” the UK and EU to strike a deal to in­tro­duce a tran­si­tion pe­riod, but said a no-deal out­come may not be as hos­tile and chaotic as some an­tic­i­pated.

He said City firms’ an­nual tax con­tri­bu­tions to the Trea­sury were at stake. “That fig­ure of £72.1bn is nec­es­sary as we in­crease in­vest­ment in pub­lic ser­vices and we need that money.”

The FCA con­sul­ta­tion cov­ered amend­ments to rules gov­ern­ing banks, in­vest­ment firms and other fi­nan­cial ser­vices com­pa­nies.

The watch­dog in­sisted no big pol­icy changes would be needed, with most ar­eas cov­ered by a tem­po­rary au­tho­ri­sa­tion of­fered to EUbased com­pa­nies op­er­at­ing in the UK for up to three years.

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