Britain is expected to lose around 5,000 City jobs by Brexit day and could see its £72 billion in annual taxes from the sector come under threat, the UK government has revealed.
Treasury minister John Glen told a House of Lords committee he backed a previous prediction by the Bank of England that around 5,000 financial services jobs would have been shifted out of London by “day one” on 29 March.
But he said there were “so many caveats to this” and insisted the government “anticipates we will get a deal”.
Mr Glen admitted “uncertainty” was taking its toll on the sector, which risks firms quitting the City and could hit the government’s £72.1bn in annual tax revenues from the financial services industry.
“That figure of £72.1bn is necessary as we increase investment in public services and we need that money,” he warned. He said he was doing everything possible to make sure the City retains its place as one of the world’s key financial centres after the UK leaves the EU. Mr Glen told the Committee on EU Financial Affairs: “My sole objective in respect of the City is to ensure as much continuation as possible in respect of economic value able to be generated by the City. You’re right to say that I said on a number of occasions that I would do whatever it takes.”