Brexit could put 100,000 financial services jobs at risk

A Mini car is seen with a Union flag and European Union flag design on its bonnet in London, Britain March 31, 2016. REUTERS/Toby Melville

LONDON (Reuters) - A vote by Britain to leave the European Union could mean up to 100,000 job losses in the country’s financial services industry over the next five years, a study said on Thursday. If Britain voted for Brexit in a June referendum this would lead to lower growth and investment and undermine London’s position as a leading centre of trade and commerce, according to the study, commissioned by TheCityUk, which represents the City of London’s finance industry.

Many international banks use Britain to gain access to the single market and as a base from which to sell financial products and services across the region. The threat of Britain leaving the EU could prompt them to rethink that structure.”The balance of factors that influence companies’ location decisions could tip in favour of relocation of some activities to other EU financial hubs,” the report said. Financial services currently account for around 10 percent of Britain’s economy, a larger share than in other big economies.

Last June, TheCityUK had said a British exit from the EU would be disastrous for the City of London finance sector.

Reporting by Andrew MacAskill. Editing by Jane Merriman