A report from the New Financial think tank group shows the most detailed results yet of the impact of Brexit on UK financial services.
We know from talking to our own members that certain cities are in a relocation boom with Dublin particularly buoyant. The New Financial report backs this up with its survey of banks and asset management firms. Over 275 companies surveyed confirmed they are moving both people and assets away from Britain in readiness for Brexit with a combined total of $1.25 trillion being moved into the EU. Goldman Sachs and Morgan Stanley’s investment management arms confirmed they had chosen Dublin as their bak up hub, with Luxembourg as the second choice. In total the report found that 272 companies in total were confirming relocating parts of their operations into the EU, with 100 going to Dublin, 60 into Luxembourg, 41 to Paris, 40 to Frankfurt and 32 into Amsterdam.
The report identifies 5,000 staff relocations across the 272 companies over the next year with those companies estimating a growth in numbers in the coming years depending on the terms of the eventual Brexit deal.
However, the reports’ commentary does highlight that this still represents less than 10% of banking and financial activity but this still equates to a drop in taxation revenue for the UK of 1%, a very significant sum.
London will remain the dominant financial centre for the foreseeable future but other European centres will continue to chip away at its dominance over the coming years.