On Wednesday, Consulting firm EY said, trillions of pounds of assets are leaving the United Kingdom to seek a new centre in the European Union, and around 7000 jobs are also likely to shift from Britain.
Financial Institution including banks, assets managers and insurer of the UK are exploring for new hubs in the European Union to prevent their businesses from any contingency going to arise from Brexit.
In the latest report released by EY, around 23 companies have announced the shift of about 1.32 trillion pounds of assets which are up from 800 billion pounds in the last quarter.
In the EU bloc Dublin will be the preferred destination for relocations, with around 28 companies from the UK are planning to set their new hubs there and between 18 to 21 companies are exploring Frankfurt, Luxembourg and Paris to establish their new centre post-Brexit.
As per the EY latest estimates, those 7,000 jobs that are moving out from the UK to EU bloc will dent £600 million in the UK direct employment tax. That indicates an average salary of around £200,000 or it could be probably more.
With only a week time left for Brexit, British Prime Minister Theresa May negotiating with EU lawmakers to seek an extension of Brexit for another three months.
At a two-day EU summit which is going to begin today, Theresa May will try to convince the rest 27 member countries of the European Union to delay Britain's departure from European Union which is scheduled on March 29, 2019.
Britain will crash out of the EU bloc next Friday unless the law gets changed, the current default position of exit is without any formal deal with the EU. Prime Minister Theresa May negotiated an agreement with the Brussel, but the British parliament voted her down twice with a considerable margin.
The leader of the opposition, Jeremy Corbyn is also attending two-day EU summit, where he will meet Michel Barnier, EU’s chief Brexit negotiator and the lawmakers of seven EU member countries to discuss a replacement to Prime Minister EU divorce plan.
Last week, House of Commons voted in favour of Brexit delay and Theresa May was expected to present a new deal in front of the house, but meanwhile, in a surprise ruling, Speaker John Bercow ruled out any further vote on Brexit unless members of the parliament are given a new plan. He said he would certainly not allow any new voting in the house on Brexit in coming days on “substantially the same” deal as members rejected last week.
The latest survey from consulting firm EY is indicating a slowdown in the UK's economy if Brexit takes place in the absence of any formal deal. The forecasted assets and jobs shift from the UK to Europe will have a direct impact on the GDP of the UK. Falling Sterling against the US dollar is already jolting sentiment of the investors. A recession kind of situation can hit the UK economy if Britain leaves the EU bloc without any formal agreement.
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