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Brexit 'could cost UK more than 230,000 finance jobs'

ByBen Woods

The UK's powerhouse financial sector would face heightened risk and an exodus of 232,000 jobs without certainty over Britain's Brexit deal, MPs have heard.

Xavier Rolet, chief executive of the London Stock Exchange Group (LSE), said two-thirds of the job losses would be felt outside Greater London, with the blow coming as soon as the euro clearing operation leaves Britain's shores.

Speaking to MPs on the Treasury Select Committee, Mr Rolet said the jobs figure came from a report produced by professional services firm EY for the LSE, which not only took into account the "few thousand" jobs lost from euro clearing itself, but the entire impact on financial services if the operation was moved outside the UK.

"Its not the level revenue or the number of jobs created by the underlying activity that counts," he added. "It is the onwards upstream and downstream strategic relevance of the business for the trading, syndication, distribution, risk management, IT, as well as treasury management of corporate insurers."

He also told how the report found that "as far as the entire United Kingdom is concerned, 232,000 jobs would be at risk or likely to be lost".

Mr Rolet warned that the EU was already singling out the UK to disrupt its euro-clearing operation in a way that does not affect other countries, such as the US or Japan.

He said the EU could take the "momentous decision" to claim the euro-clearing business via treaty or regulatory changes, or through the introduction of minor rules that have a far-reaching impact.

Banks have issued stark warnings since the Brexit vote, claiming thousands of jobs would shift to rival financial centres across Europe and the US if Britain loses the right to sell financial services to the EU.

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