Bank of England warning of thousands of City job loses demonstrates damage of brexit, says SNP

Westminster has so far refused to publish evidence on what Brexit will mean for the sector north of the border as well as the wider business community in the event of the UK leaving the EU without a deal in a ‘hard Brexit’ scenario.

Edinburgh is home to the largest number of finance jobs in the UK outside of London and it is feared that today’s projections by the Bank of England could have a severe impact upon employment and the wider Scottish economy.

Citing senior figures, the BBC reported that the Bank of England was using the 75,000 number as a “reasonable scenario”, based on a situation under which no specific financial services deal is struck between the UK and the EU.

The BBC also reported that the number could change depending on the final trading relationship agreed between the two sides. Many jobs would likely move from the UK to the continent, the BBC said.

A Reuters survey of firms employing the bulk of workers in international finance showed last month that around 10,000 finance jobs would likely be shifted out of Britain or created overseas in the next few years if the UK is denied access to Europe’s single market.

Frankfurt is largely seen as the most popular destination, with Paris, Dublin, Brussels and Madrid other contenders.

Commenting, Holyrood finance committee member and Edinburgh Eastern MSP Ash Denham, said: “We know for a fact that the UK government has assessed the impact of Brexit upon Scotland and on financial services UK-wide. For them to ignore calls to publish these when jobs and our economy are at considerable risk is not just pig-headed – it’s the act of a reckless, irresponsible government.

“In light of these latest warnings from the Bank of England is high time we got some answers. If the Tories drag Scotland’s economy off a cliff edge and we crash out of Europe without a deal, then how many jobs are they putting at risk – and will they give our Scottish Parliament the powers to prevent that scenario from happening?

“While the SNP is promoting Edinburgh and Scotland’s cities as great places to come to live, work and study the Tories would rather see skilled jobs go to Paris or Frankfurt.

“The position is becoming completely untenable. The UK government has had a 15-month period to devise a strategy which doesn’t result in economic self-harm. It’s clear that they’re failing badly and we shouldn’t stand for it.”