(Press Association) A Bank of England official has said 10,000 financial services jobs could go on the first day of Brexit and that an independent report predicting a loss of 75,000 roles was “plausible”.
Sam Woods, head of the Bank’s Prudential Regulation Authority (PRA), said the 75,000 figure was not produced by the Bank of England, but came from a report by consultants Oliver Wyman in 2016, which gave a credible prediction of the impact of Brexit on financial services.
Mr Woods, who has seen the Brexit contingency plans of a range of financial services companies and banks, said he expects around 10,000 jobs to be lost on day one of Britain’s break from the European Union, adding that he would be “surprised” if the number is higher than that.
Speaking to the House of Lords EU financial affairs sub-committee, he said: “The 65,000 to 75,000 is not a Bank of England number – it’s an Oliver Wyman number.
“And how Oliver Wyman came up with that number is they looked at this scenario, which they considered the most extreme scenario, where the UK defaults to WTO status and what portion of revenues of the financial services sector might fall away.
“They thought crudely that 40% to 50% of the EU27 revenues, which are £40bn of £200bn, might fall away.
“That got them to £20bnn revenue number if you like, a 10% reduction in revenues.
“They then associated with that a 30,000 to 35,000 reduction in financial services jobs here in the UK, added to that the ecosystem effect and ancillary jobs and things like that, which hence they get to 65,000 to 75,000.