‘potential loss of 5000 jobs due to Brexit’

A news article from the BBC has highlighted the possible loss of 5,000 jobs in the capital, London, due to Brexit and the outcomes surrounding a ‘no deal Brexit’. The article expresses the concern of a ‘no deal’ Brexit and how important the financial sector is to the UK economy as firms could simple choose to ‘flick a switch’ and move to the continent in order to carry on trading and growing without the speculations of the UK economy. Personally I found this report particularly interesting as it is completely based on assumptions of what might happen in the UK and to UK businesses. The UK wants to keep London to remain a ‘major financial centre’ as the financial sector generates around £70 billion in taxes for the government but there is no evidence to suggest firms will even move employees and offices out of the UK. Even the treasury has not bothered to make calculations of the potential loss to the UK economy, which arises the question of why are news reports even making assumptions about the amount of jobs that could be loss? and the potential damage this could cause the UK economy. All these predictions and figures about the potential damage is completely based on assumptions and doesn’t have solid evidence to create these assumptions for example ‘5000 jobs will be loss’ as it has never happened and the whole country including the Bank of England and the treasury are unsure and have uncertainty into what might happen. How can you predict the outcomes of Brexit when there is no previous evidence to suggest big problems occur as a result of leaving the EU and the customs union.
In conclusion, my interest in this subject is constantly expanding as the speculation and uncertainty grows and the only thing business are able to do is speculate, they cannot make decisions based on what type of agreement happens as they have no idea of what might happen. The government and the treasury, believe is can be potentially bad for the UK economy and more than half of our GDP goes to the EU. More than likely it will have a negative impact on the UK economy in the short-run, but in the long-run we could see potential benefits to the UK economy thanks to Brexit, unfortunately as an event like this has not happened before and there is no previous economic model to follow the process of leaving a customs union businesses are simply left to wait and see what happens with the trade deals the UK are able to salvage. The financial sector in the UK is extremely important and a loss of businesses due to a no deal Brexit would give significant impacts to the UK economy but in the long-run more entrepreneurs and new trade deals and new businesses could potentially give the UK a bigger boost in economic development and could create more jobs for UK citizens but this again is completely unknown and it is almost impossible to predict what might happen as a result of Brexit. All predictions in regard to the potential loss of jobs in the UK due to Brexit are predictions and not set in stone, in reality not many people know what will happen and the impact of a large economic event due to the uncertainty surrounding Brexit and the deal, will it be a ‘hard Brexit’ or a ‘soft Brexit’. All predictions in regard to the potential loss of jobs in the UK due to Brexit are predictions and not set in stone, in reality not many people know what will happen and the impact of a large economic event due to the uncertainty surrounding Brexit and the deal, will it be a ‘hard Brexit’ or a ‘soft Brexit’.