Financial companies & banks shift assets and jobs out of UK as Britain lurches towards Brexit.
Companies that provide financial services plan to move £1 trillion ($1.3 trillion) into EU up from an earlier estimate of £800 billion ($1.1 trillion).
Other companies move assets to protect clients against sudden changes in regulation & wild market swings which accompany rupture between trading partners & Britain.
Industry of financial services accounts for 12% of economy of UK employing 2.2 million people.
222 of the biggest companies for financial services were tracked by EY in UK since referendum of Brexit in June 2016.
Number of jobs will be relocated out of UK soon standing at 7,000 which costs Britain £600 million ($794 million) in lost taxes.
“As the day draws nearer, we need to recognize that there are risks that are out of sector’s control. No financial services businesses can know for sure how a disorderly Brexit will impact them, clients, people & supply chains or broadly, UK economy”
EY estimates moving of assets to Europe was “conservative”. However, it matches expectations of European Central Bank roughly.
Head of banking regulation at ECB, Andrea Enria said €1.2 trillion ($1.4 billion) of assets are expected to be moved into EU countries use euro currency.
Exodus’s ultimate scale depends on divorce when it occurs.
Britain leaves EU in just nine days. However, Prime Minister Theresa failed to win support for divorce deal in UK parliament with the rest of EU.
Here’s our guide to how Brexit will affect you. (Click to subscribe for more Channel 4 News videos. https://www.youtube.com/channel4news?sub_confirmation=1) The UK is set to officially leave the EU on 29 March 2019. But what happens next? Economic crash? Restoring British democracy?