Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of the impact on the banking industry of jobs being moved out of the UK due to Brexit uncertainty.

The Treasury is in frequent contact with firms and regulators regarding their contingency planning for EU exit. Over time there has been a gradual reduction in the number of jobs expected to move to the EU for “day one” at the end of March 2019. Sam Woods, the Deputy Governor of the Bank of England said in July that just under 5,000 financial services jobs are likely to move by “day one”.

Further job movements will depend on factors including the actions of European regulators, market conditions, and of course, the structure of the future relationship with the EU which will be based on the Political Declaration and negotiated during the implementation period.

We remain committed to preserving our competitive position in financial services after the UK has left the European Union and leaving the EU with a deal remains the Government’s top priority. An Implementation Period is the most effective approach to ensuring a smooth and orderly exit from the EU. That is why it is so important that we redouble our efforts to reach a negotiated deal that Parliament can support.

The Government’s long-term economic analysis of EU exit, published in November 2018, sets out the impact of the UK’s White Paper position on the financial services sector.