A leading city figure, whose former role involved regulating square Mile said the British exit from the EU could result in the loss of 75,000 jobs and $ 10 billion in annual tax revenues.
Sir mark Boleat, who was Chairman of the Corporation of the city of London until last year, said that the leak of jobs from the capital are already underway and that the political strings behind the deal or not-online the outcome was now “irrelevant” for the city leaders.
Banks, including JP Morgan, Lloyds, Barclays, HSBC and “Goldman Sachs” has set up subsidiaries in other EU countries or moved part of their business, as EU law requires them to be legally compliant from the day leaves the United Kingdom.
“This is not planning. If you work in a Bank, it is not discussed. Regulators do not allow this”, – he said.
In an interview with The Guardian before a speech Wednesday at the cass business school in London, Boleat said the city will not die, as the financial capital of Europe, but will be damaged a British exit from the EU.
“These steps are bad for London, but they are also bad for the EU, because they will make financial markets less efficient,” he said. “Financial services will be fine, but I’d say If 80% of international business now, in the future it will be maybe 60%.”
Boleat said the UK’s exit prompted expensive and unsightly process and damage will appear over the next decade.
“It’s 10 years of operation. In the short term it will not be visible from the point of view of staff. Banks do not issue press releases saying that they are moving some of their operations for the quarter and month, because they don’t want publicity. They just accept it.
“Moving is worth millions. Banks were groups of 100 employees for the quarter and month. It is an expensive process. You need to determine what cities to go to, using the [Bank] license is worth millions, you have to find staff, find housing”.
He also believes that the government is in such disarray that the transaction leaving the UK from the EU will be postponed until December, leaving business planning in the other place dangerously close to leaving the EU.
In his address, Boleat will say he doesn’t think financial services will receive a special certification to allow them to continue European service from London and that banks have already passed the moment of truth, what politicians think.
“Those who suggested that some businesses will move accused of alarmism”, he says before the list of 15 largest banks and financial services that have already been created on the continent or Dublin.
He would Quote the report of the Oliver Wyman consulting company, says if UK makes a deal granting full market access, the impact on the city will be modest, equivalent to 3000-4000 jobs and a loss of £500 million a year in taxes to the Treasury.
“On the other end of the spectrum, if the UK had no special status with the EU, now the most likely option, the industry lost £18 billion in revenue per year, which would put 31,000 to 35,000 jobs under threat, together with £3.5 billion to $ 5 billion in tax revenues.”
To add to the play effect on related industries and the loss of all business units, an estimated additional loss of £14 billion to $ 18 billion in revenue and 34 000 to 40 000 jobs and £5 billion in tax.
Asked whether the government daily about the bleeding of financial services in other EU countries, Boleat said: “it is Not enough that worried. It needs business to talk to the deputies not to Express their opinion about a British exit from the EU, but to explain to them, ‘this is what I do for leaving the UK’. This is not alarmism, this is reality.”