The rise and rise of the cost of Brexit
UK financial services companies are moving some 7,000 jobs and £1tn of assets outside the UK in preparation for Brexit. And the sector’s Brexit-related expenditure to date runs to around £4bn, according to EY.
However, the consultancy reckons the true cost will be much higher as most companies have yet to calculate the financial impact of the UK leaving the EU.
And many firms have yet to make a move on shifting resources and assets to locations such as Amsterdam, Frankfurt, Luxembourg and Paris due to the uncertainty about when, or if, Brexit will take place. The financial sector also cannot be sure under what conditions it will be able to trade with the EU27 given politicians’ failure to negotiate a departure agreement.
"The past three months have seen most firms to some extent pause their Brexit planning with both planned jobs and assets moves remaining flat,” says Omar Ali, UK financial services leader at EY. “However, in the last few weeks we have seen some firms restarting their programmes and we expect preparation activity for a no-deal to increase markedly throughout the summer."