Bank of England is STILL trying to push Project Fear
The Bank of england believes 75,000 jobs could leave the City of London unless millionaire bankers get a good Brexit deal, the BBC claimed yesterday.
But the claim was criticised last night, with one MP suggesting it amounted to an attempt at reviving the discredited Project Fear.
The gloomy figure stood in stark contrast with a World Bank report that says Britain is one of the best countries on the planet in which to do business.
Bank of england Governor Mark Carney was criticised in the run-up to the Brexit referendum over his warnings that the nation could slide into recession after a vote to leave. But the economy has instead grown steadily.
And some of the world’s biggest lenders have recently gone back on claims they could leave London, with many suggesting job moves will be far smaller than previously claimed.
The 75,000 figure originally comes from a much-disputed report produced last October by consultant Oliver Wyman for
lobby group TheCityUK as banks battled to convince ministers they needed a special deal.
The BBC reported yesterday that senior figures at the Bank are using the number as a ‘reasonable scenario’, particularly if there is no specific financial services deal with the eU. But Tory MP Charlie elphicke of campaign group Change Britain said: ‘It’s deeply disappointing that senior figures at the Bank of england seem to have reverted to Project Fear – despite the fact that so many of their forecasts during the referendum campaign have turned out to be incorrect.
‘Talking Britain down is wrong, especially when there is no evidence to support it.
‘The truth is that european businesses rely on the UK’s financial institutions, so they have every reason to want to reach a deal on financial base this services. doom-laden For estimate the Bank on to this not happening is unwarranted and unreasonable.’ The report for TheCityUK was just one in a stream of threats by Remain-backing business groups that have so far not been borne out by the facts. Official statistics show 11,000 new jobs were created by financial and insurance companies across Britain in the second quarter of 2017. Individual banks have also shifted the goalposts. While, hSBC initially said it would move 1,000 jobs to Paris, senior figures stressed recently this was a worstcase scenario and they have no intention of rushing to act.
Wall Street lender JP Morgan has backed away from previous threats to cut 4,000 of its 16,000strong UK workforce and Swiss financier UBS has reversed its plan to slash 1,000 City jobs.
German lender Deutsche Bank once said it would axe 4,000 London posts but insiders have since heavily played down this threat.
It has also signed up for a large new London headquarters. Gold- man Sachs, which employs around 6,000 people in London, is also pushing ahead with the building of a new office.
Brexit Secretary David Davis told the Cabinet yesterday that up to 8,000 extra officials are being taken on to deal with the consequences of a ‘no-deal’ exit from the eU.
Ministers say they want a deal – but are preparing for all eventualities. More than 3,000 new posts have been created in Whitehall departments, including 300 new lawyers, and hM Revenue and Customs is taking on up to 5,000 new staff as it prepares for new customs arrangements that will be needed if a deal is not reached.
The sixth round of eU negotiations will take place in Brussels next week.
hOUSehOLDS are already worse off as a result of Brexit, a report by the National Institute of economic and Social Research think-tank claimed yesterday. Its analysis says the fall in the pound since the referendum has driven up prices – reducing the disposable income of a typical household by £600.