According to the latest reports, Britain’s financial industry is well headed for a major setback – thanks to Brexit. A new report, from TheCityUK, claims that the country can even end up losing around 38 billion pounds in the wake of “hard Brexit” and this loss would mean that the country will now be left with limited access to European Union’s single market. However, the report itself has drawn flak as well. Richard Tice, the property investor, opined that the report lacks balance and that the other European capitals don’t have the infrastructural facilities or acumen to avail financial business services from Britain.
Here are details of what the report has claimed
The report has, very clearly, come up with two possible scenarios for Britain. If the worst happens then there is every possibility of international banks losing entire access to the single market branded as “Hard Brexit”. This, in turn, would result in a loss of 32 to 38 billion pounds, putting up to 75,000 jobs at risk.
In another scenario, if the country chooses to retain its access to the European Economic Area under similar terms that exist now, then around 4,000 jobs and 2 billion pounds will be at risk.
Notably, the country’s financial sector generates around 190 to 205 billion pounds of revenue every year by employing just a tad more than 1 million people, according to the report. The banks in Britain are all for the attainment of a transitional industrial period if it becomes difficult to strike a favorable deal for the industry. London remains the bone of contention in Brexit talks between Britain and the EU since it is the largest source of export and tax revenues.
Hector Sants, (Oliver Wyman’s Vice President) has opined that a positive outcome of talks will be in the best interest of everyone (here Britain and EU) to avert possibilities of disruptions in the industry or customer benefits.
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