More than 10,000 City jobs will go on day one of Brexit - EY

The firm said Dublin and Frankfurt are the financial centres most likely to benefit from the UK’s departure from the EU.

EY’s latest job tracker report states that the number of roles likely to be affected had fallen from estimates of 12,500 a year ago.

But it also concluded that the jobs being affected by Brexit were not just the “back office” ones initially forecast, but “front office” staff who deal directly with clients.

Omar Ali, EY’s UK financial services leader, said Friday’s announcement of a first-stage deal, allowing talks to move on to trade, had sent “a wave of relief across the City”.

“It signalled an intention to agree a transitional period as early as possible next year and the starting point for negotiations on future trade deals, both of which are fundamental to avoid adding any additional risks to the system and for the future strength of the UK financial services industry,” said Ali.

He added that firms’ contingency plans had become more detailed over the past year. “The extent of broader strategic restructurings and relocation plans will of course ultimately depend on the specifics of any long-term UK deal with the EU, but a drop in the volume of jobs moving will be welcome news for the City.”