09 May 2016

George Osborne: ‘Tens of thousands of jobs will go’ in the City if UK leaves EU

Mr Osborne’s estimates were based on a new Treasury analysis showing around 100,000 financial services jobs were directly linked to EU exports, with another 185,000 jobs reliant on the indirect demand created by that business.

The Treasury analysis was based on official data on the total number of jobs in financial and insurance activities and the latest figures showing that 33 per cent of exports go to the EU.

Xavier Rolet, chief executive of the London Stock Exchange, has said that as many as 100,000 City jobs could be lost if Britain left the EU in a private meeting with David Cameron, linked to moving the clearing of euro-denominated securities out of London.

But Boris Johnson, the pro-Brexit former London mayor, recalled similar warnings when Britain did not join the euro. “Canary Wharf is now far bigger than the Frankfurt financial centre,” he said.

Speaking at an FT125 Forum event on Monday evening, Mr Osborne said financial services accounted for £69bn of exports a year. “A vote to leave the EU would put all this at risk,” he said.

His warning was the latest in an escalating series of claims by the government over the economic risks associated with Brexit.

Mr Osborne also warned that too many company bosses were keeping their heads down in the Brexit debate, saying they needed to speak up to avoid a “catastrophe for business, investment, jobs and incomes”.

He accused his cabinet colleague Michael Gove of wanting to inflict a Brexit “catastrophe” on the British economy with his confirmation that Britain would not seek to be part of the single market.

“That would be a catastrophe for business, investment, jobs and incomes,” Mr Osborne said. “Some people may think wrecking our economy is a price worth paying but I totally disagree.” [...]

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