Fewer bank jobs than expected relocating from London

A Reuters survey of leading financial services companies shows that fewer jobs will relocate from the UK to the EU after Brexit. However, business leaders warn that it is "early days".

Business women walking in London
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Read more about Brexit in the latest issue of Relocate magazine.Despite the political chaos in Britain over Brexit, fewer than 2,000 financial services posts in London are now expected to have been relocated, or created, in new European hubs by the time the UK leaves the EU.Reuters’ fourth survey of leading financial services companies suggested 1,986 jobs would have been moved or created elsewhere by March 29 - double the number recorded in the survey in September but sharply down from the 5,766 roles then predicted to have been affected by Brexit day."Britain's financial services industry has emerged largely unscathed so far from the build-up to Brexit," reported Irish broadcaster RTE."Many bankers and politicians predicted Britain's vote to leave the European Union in a 2016 referendum would prompt a mass exodus of jobs and business and deal a crippling blow to London's position in global finance. "But the number of jobs UK-based financial institutions say they actually expect to shift overseas has fallen steeply from the 5,766 predicted to move in the event of a no-deal Brexit in the last survey in September."This new estimate is about a fifth of the 10,000 flagged in the first survey in September 2017."Reuters' survey was based on responses from 132 banks, asset managers, insurers, ratings agencies and exchanges with UK operations. The survey was conducted by email and telephone between January 3-28.

Ninety of the companies said they would have to move staff or restructure their businesses because of Brexit, although only 59 specified numbers. Most, it seemed, were holding fire until the terms of Brexit were finally resolved.Meanwhile, a separate study by Reuters showed that leading investment banks planned to hire far more people in London than anywhere else in Europe, indicating they expected Britain will remain their main regional hub, at least in the short term."It will be a slow burn. We won't know what the full impact will look like for at least 10 years," said Catherine McGuinness, who chairs the City of London Corporation's policy and resources committee. "But the City is always changing and it will find a way to thrive.“We haven’t seen substantial job losses in financial services materialise yet. However, these are early days.

“Firms are watching closely to see if a way can be found through the current Brexit impasse. This will play an important role in determining whether we see more jobs and assets move to the continent after we leave the EU.”The latest findings are in stark contrast to predictions made by consultants at the time of the Brexit referendum in 2016 that as many as 75,000 jobs could go in the City. 
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