A Bad Brexit Deal for Banks Threatens Cities Across the U.K.
Brexit’s ugly divorce makes banks edgy as a third of Britain’s financial services exports go to the European Union.
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Cities outside London are more exposed to the effects of a bad deal for financial services after Brexit than the U.K. capital, according to a report published on Thursday.
While finance represents a 29 percent share of London’s total exports, it makes up 56 percent of those for Edinburgh and 54 percent for Cardiff, according to the study, carried out by the Centre for Cities think tank and sponsored by the City of London Corporation.
Northampton, Leeds, York and Norwich are also heavily reliant on financial-services jobs, it said.
“The government has outlined its plans to take services out of the EU single market,” Andrew Carter, chief executive of Centre for Cities, said in a statement. “It should not underestimate the damaging impact that this could have on jobs and wages in cities across the U.K.”
A third of Britain’s financial services exports go to the European Union, according to the corporation, compared with 21 percent to the U.S., six percent to Japan and one percent to Canada.
“This data makes clear that some of the U.K.’s major cities rely heavily on financial services,” said Catherine McGuinness, policy chairwoman for the City of London Corporation. “A detrimental Brexit deal for the U.K.’s financial sector will be felt nationwide -- not just in the capital.”
To contact the reporter on this story: Thomas Penny in London at tpenny@bloomberg.net
To contact the editors responsible for this story: Flavia Krause-Jackson at fjackson@bloomberg.net, Andrew Atkinson, Stuart Biggs
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