BoE Warns Brexit Could Cost 75,000 Financial Jobs

Bank of England

Bank of England

The Bank of England has said losses of up to 75,000 financial services jobs could be a "reasonable scenario" following the UK's exit from the European Union, particularly if the result is a 'no-deal' Brexit.

According to the BBC, senior figures at the BoE said the number could change depending on what type of trading deal Prime Minister Theresa May is able to achieve post-Brexit. However, it still expects the UK to lose jobs to the continent.

In April, the BoE ordered financial firms to draft Brexit contingency plans for the potential range of outcomes, including a hard Brexit.

The letter said: "The main purpose of this letter is to ensure that all firms are making, and stand ready to execute in good time should the need arise, contingency plans for the full range of possible scenarios such that the safety and soundness of their UK operation is assured and the risk of any adverse financial stability impacts on the UK economy is mitigated."

The figure is in line with a report from thinktank Centre for London, who in July, said 70,000 finance jobs could be lost in London if the UK loses access to the single market, with financial and business services accounting for around 50% of London's exports.

Major banks such as JP Morgan Chase and Goldman Sachs have already announced plans to move hundreds of staff to its European offices with Dublin, Luxembourg and Frankfurt the chosen locations.

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