An estimate that was made by the City of London Corporation says that the City will likely lose as few as 5,000 jobs due to Brexit. The estimate was supposedly due to be released in September and the figures are far lower than was originally feared
The internal report was shared ahead of schedule with Politico, a politics specialist. IT suggests that the City of London Corporation has reduced its previous estimates that set the total job losses at as much as 75,000. The estimate was based on a report that was made by Oliver Wyman, a consultant, in 2016.
The corporation now believes that between 5,000 and 13,000 jobs that were based in London will have gone by the time the United Kingdom withdraws from the European Union in March next year.
Catherine McGuinnness, the City of London’s policy chief, had informed the Brexit Select Committee that she believed that the initial job loss would come in between the range of 3,500 and 12,000, even though she warned that it would likely increase in the subsequent months depending on the kind of deal that the government of the United Kingdom reaches with Brussels.
Charles Bowman. the Lord Mayor of London, informed Politico that the City is feeling increasingly confident that “barring dotting of i’s and crossing of t’s,” the Brexit transition period is considered a done deal, and that the sector will support the government on its new model of expanded equivalence, though it was already pushed for the closer model of mutual recognition.
Bowman stated: “We will be working with all our stakeholders in the weeks ahead to determine what that looks like.”
He argued that the future of the City will be defined less by Brexit as compared to new developments such as the rise of fintech, which accounts for approximately 50,000 of the 483,000 jobs of the City.
He stated: “If we are to lose some of [the existing] jobs, they are going to be the jobs that probably in five-to-10 year’s time are not going to be around, or are not going to be in the same shape or form as today — because the sort of joining of technology with finance at this moment in time is creating a very different dynamic.”