London's finance sector employment will shrink by 8.3% by 2035, says Cambridge Econometrics.
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London’s status as the business capital of Europe may change over the next decade according to an economic forecast released by Cambridge Econometrics.
The study, published last Thursday, was commissioned by the Mayor of London, Sadiq Khan. Its findings suggest that London’s economy has already suffered a loss of £30bn because of Brexit.
Cambridge Econometrics published data predicting how Brexit will affect industries in London compared to the rest of the UK.
The construction and financial sectors are expected to be the worst hit.
Figures show a decrease in employment of 32.3% and a lower 8.2% in finance.
According to the Greater London Authority (GLA), business services is the largest employment sector in London, meaning that these statistics indicate a significant impact on its economy by 2035.
Forbes dubbed London the Silicon Valley of Europe in 2021, with numerous tech-start-ups choosing to set up in the city. It is smaller companies that will suffer if the report’s findings prove to be accurate.
‘Talent shortages’
Laura Balboni is the Senior People and Talent Manager at Sifted, a media company based in Shoreditch that publishes Europe’s most innovative start-ups. She says a rise in visa costs has made things difficult for companies like them whose work relies on its relationship with Europe.
“The end of the free movement of people has substantially altered the recruitment landscape, resulting in pronounced talent shortages and increased costs for securing skilled workers matching our specific skill requirements that were once readily accessible.”
She also says that it has become difficult for the company to maintain employees working remotely in Europe due to post-Brexit bureaucracy.
“The intricacies involved in hiring individuals within the EU have intensified, demanding substantial resources to stay abreast of employment regulations across numerous EU jurisdictions.”
Following the publication of the report, Sadiq Khan has posted on X his hopes that a “grown-up approach” to the UK’s relationship with the EU would lessen the damaging impact on London’s economy that the report predicts.
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Standfirst
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HeadlineBrexit will harm London as small business hub of Europe, study suggests
Short HeadlineBrexit effect on London business expected to get worse
StandfirstCambridge Econometrics data projects a loss of 500,000 jobs in London by 2035 because of Brexit.
London’s status as the business capital of Europe may change over the next decade according to an economic forecast released by Cambridge Econometrics.
The study, published last Thursday, was commissioned by the Mayor of London, Sadiq Khan. Its findings suggest that London’s economy has already suffered a loss of £30bn because of Brexit.
Cambridge Econometrics published data predicting how Brexit will affect industries in London compared to the rest of the UK.
The construction and financial sectors are expected to be the worst hit.
Figures show a decrease in employment of 32.3% and a lower 8.2% in finance.
According to the Greater London Authority (GLA), business services is the largest employment sector in London, meaning that these statistics indicate a significant impact on its economy by 2035.
Forbes dubbed London the Silicon Valley of Europe in 2021, with numerous tech-start-ups choosing to set up in the city. It is smaller companies that will suffer if the report’s findings prove to be accurate.
‘Talent shortages’
Laura Balboni is the Senior People and Talent Manager at Sifted, a media company based in Shoreditch that publishes Europe’s most innovative start-ups. She says a rise in visa costs has made things difficult for companies like them whose work relies on its relationship with Europe.
“The end of the free movement of people has substantially altered the recruitment landscape, resulting in pronounced talent shortages and increased costs for securing skilled workers matching our specific skill requirements that were once readily accessible.”
She also says that it has become difficult for the company to maintain employees working remotely in Europe due to post-Brexit bureaucracy.
“The intricacies involved in hiring individuals within the EU have intensified, demanding substantial resources to stay abreast of employment regulations across numerous EU jurisdictions.”
Following the publication of the report, Sadiq Khan has posted on X his hopes that a “grown-up approach” to the UK’s relationship with the EU would lessen the damaging impact on London’s economy that the report predicts.
