Brexit: Mairead McGuinness says UK and EU are ‘linked forever’
Mr Glen was speaking after EY’s Brexit tracker estimated roughly 7,500 jobs and £1.2 trillion in assets have left the City since the UK voted to quit the EU in 2016. The figure is vastly below wild projections including by Xavier Rolet, former chief executive of the London Stock Exchange, who claimed more than 230,000 jobs could be lost.
JP Morgan, whose parent company’s chief executive previously claimed Brexit may cut 4,000 British jobs, will have moved fewer than 400 by the end of this year, while Morgan Stanley has relocated a mere 150 roles.
The City is one of the world’s foremost financial centres, and Mr Glen said he had no doubt it would remain so outside the bloc, irrespective of multiple gloomy predictions.
Speaking yesterday, he said: “When I came into this position in January 2018 there was significant commentary from journalists and academics about the jobs that would be lost as a consequence of Brexit.
Boris Johnson, campaigning yesterday, will be buoyed by EY’s findings
John Glen, the City Minister, said gloomy predictions had been proven to be wrong
“Though there has been a modest adjustment with contingency arrangements being made, we certainly haven’t seen the depletion in jobs of people in working in the City of London over these last three and a half years.”
Speaking last week, Professor Daniel Hodson, chairman of The CityUnited Project think-tank, told Express.co.uk: “The City is a global leader in financial services.
“Why should it fear temporary threats from one of the several single currency financial centres within one of its many world markets?”
City of London: One of the world’s most important financial centres
“The decision makers and the value added remain put and will always look for the safe, liquid, well-regulated, and most importantly non-protectionist markets that the City provides and will continue to provide.”
The CityUnited Project’s Vice Chairman, Leigh Evans, added: “There’s no doubt that Brexit will involve changes, particularly because the EU has refused to engage constructively with the UK on financial services.
“This is despite the UK having unilaterally granted EU firms access to the UK markets.
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Clement Beaune, France’s Minister for European Affairs
Mairead McGuinness, European Commissioner for financial services
“Nevertheless, the very small number of jobs that have moved so far, as seen in the Economist’s article, demonstrates that the City still retains its pivotal role as the key financial centre in Europe.”
Meanwhile, Robert Oulds, director of the Bruges Group think tank claimed fearmongers had been motivated by a desire to “undermine the referendum result and subvert democracy”.
He added: “Either the prophets of doom made up scare stories to please political masters or they are incapable of doing their jobs properly.
Brexit in Express front pages
“They need to take an honest look at themselves, if that is possible, and decide which one it is.
“Not one scare story was correct, in fact, the reverse is true.”
Mr Oulds said: “The evidence was always clear that leaving the EU would be a benefit, it is disappointing that many self-appointed experts could not see that.
“If economists cannot dispassionately look at facts then that creates real long-term problems for the British economy.
Xavier Rolet is among those who made dire predictions over job losses
“Until businesses begin to be able to look at evidence and form unbiased opinions they will not be able to take advantage of opportunities as they arise.”
Speaking last week, France’s Europe Minister Clement Beaune appeared to float the idea of barring the City from EU markets if the UK did not increase access to UK waters for French fishermen.
Specifically, he warned of “retaliation measures”, saying of market access: “We will give none – it is quid pro quo.”
Also speaking last week, Mairead McGuinness, European Commissioner for financial services, said Brussels will “not be recreating access to the single market for the UK as they have chosen to move out”.