(Reuters) – UK finance companies continue to move business to new EU hubs and will not stop unless Brexit is interrupted, a think tank told UK legislators Wednesday.
William Wright, Head of New Financial, said the study published on March 11 showed that 275 financial corporations moved some of their business, staff or assets from the UK to hubs in the EU to avoid Brexit disturbances.
"Since the report was published, we found another 14 companies have put Wright said to a House of Lords committee.
Movements from the UK would continue under some Brexit results that failed to interrupt Britain's departure from the block when companies tried quit trade uncertainty, said Mr. Wright
Andrew Pilgrim, a partner of consultants EY, told lawmakers that it did not go back for the major banks that have spent millions of euros establishing and staffing new EU hubs.
" For most people, they
are due to leave the EU on March 29, but the departure has been delayed until at least April 1
The Future of UK Remaining in EU Customs The union has increased, a step Pilgrim said would not provide financial market access to the block.
Brexit is also a catalyst for reviewing business models and accelerating long-term shifts in office staff from the UK to cheaper places like Poland and to be closer to key customers, Pilgrim said.
On Wednesday, the German Foreign Banking Association stated that up to 5000 new jobs in their member institutions would be created over the next 12 to 18 months due to Brexit.
The Bank of England expects about 4,000 banking and insurance jobs to be relocated by Brexit Day, a fraction of the early estimates from consultants in the wake of the UK's vote in 2016 to leave the EU.
If the UK leaves the EU without agreement, financially, I could flow immediately from the UK to Singapore and the United States, as they have access to the block, Pilgrim said.
Mr. Wright said there was now only room to pause but did not stop the flow of financial services from the UK to the EU, unless the UK remained in the single market, a step the government has so far ruled out.