Brexit could cost banks $51 billion --  according to the banks

Britain’s exit from the European Union could stoke a £40 billion ($51 billion) loss in revenue for financial firms in the UK, Bloomberg News reported, citing an industry report to be released Wednesday.

Oliver Wyman, which prepared the report on behalf of TheCityUK lobby group, said almost 70,000 jobs and £10 billion of tax revenue are on the line from Brexit, according to Bloomberg’s Gavin Finch and Richard Partington.

The report is said to examine two different Brexit scenarios. Assuming the UK is outside the European Economic Area but retains access to the single market, then 4,000 jobs could be at risk.

The industry could lose a £2 billion in revenue every year, and the UK Treasury to lose a £500 million in tax receipts.

If the industry loses its financial passport, then 35,000 industry jobs could be at stake, along with a £20 billion of annual revenue and a £5 billion in lost tax receipts.

The hit on the wider financial markets of this outcome could “almost double the effect of Brexit,” the report says.

Financial services, which contribute £65 billion to the UK economy annually, are calling for prioritised protection in upcoming Brexit negotiations. Prime Minister Theresa May’s team, however, isn’t budging to the sector’s financial clout.

The EU has also signalled it would not be willing to cut a special deal with the City of London.

Read the full story over at Bloomberg»

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