London’s lucrative financial services have been the target of persistent Brexit scaremongering – with the Bank of England facing criticism last year after claiming 75,000 jobs could head to the continent.
Now Deutsche Bank chief executive John Cryan has admitted it will move hundreds of jobs from the UK, rather than thousands, because of the people’s choice to leave the EU bloc.
Some have claimed the German financial institution will move 4,000 employees due to the bloc’s attempts to steer banking services away from the UK capital.
But Mr Cryan claimed the figure was false – and far fewer job relocations would be carried out.
The CEO said: “The number of 4,000 mentioned again and again in media reports is way too high.”
He said Deutsche’s bankers, technology experts and traders would largely remain in London while the bank’s booking centre would move to Frankfurt.
Mr Cryan added: “But this affects fewer jobs than many people think.”
Last month research indicated predictions Brexit would fuel a swift and massive jobs exodus from the City of London will not translate into reality.
Banks are still planning intensively for potential changes in their operations after Brexit in March 2019 – but now expect to move far fewer jobs from London in the run-up to exit day and immediately afterwards.
Professor Patrick Minford, chairman of the pro-Brexit Economists for Free Trade, said: “We welcome this news that we always expected and note that it tallies with our estimates of the extent of passporting – which gives the City access to the single market – and the need to ‘work around’ any new obstacles.
“It is also consistent with all our research on the City: that it will prosper mightily under Brexit due to better – home-based – regulation, lower input costs as prices come down in the rest of the economy, and its existing huge strengths as the number world financial centre which means it can sell as much as it likes anywhere in the world.”
Analysis by the Financial Times newspaper based on interviews with financial institutions concluded that the big international banks were set to move fewer than 4,600 jobs from London in preparation for Brexit.
That would be just 6 percent of their London workforce and is far below consultants’ forecasts of more than 10,000 on day one of Brexit.
Prof Minford said this represented just 0.6 percent of London’s 700,000 financial sector staff, including those outside banks.
He added: ”Meanwhile, hiring into London finance is rising at around 3 percent a year and has gone above its pre-crisis peak,”