The British financial servicessector is at risk of losing between £32 billion and £38 billion in revenues and£8 billion to £10 billion in tax receipts each year as a result of Brexit, assuminglimited passporting rights, if any, while 65,000 to 75,000 jobs could be lostin the long term, according to a report by management consultancy firm OliverWyman.
The sector annually earns between£190 billion and £205 billion in revenues, generates approximately £60 billionto £67 billion in taxes each year and employs some 1.1 million people acrossthe U.K., the report noted.
On the other hand, if the U.K.retains access to the European Economic Area on terms similar to what prevailcurrently, potential losses would likely be much more limited at approximately£2 billion in revenues, less than £500 million in taxes and between 3,000 and4,000 jobs.
"It is in everyone's bestinterests for there to be a positive outcome to the negotiations that is mutuallybeneficial to the U.K. and the EU, causes minimum disruption to the industryand benefits customers who have come to rely on the U.K. as a uniquely skilledand connected ecosystem for financial services," said Hector Sants, vicechairman at Oliver Wyman.
Lobby group TheCityUK hadcommissioned the report.