According to the latest EY survey, around a third of financial services firms in London have confirmed contingency plans to establish European hubs after Brexit.
Although the agreement on a post-Brexit transition period had “not stemmed the steady stream” of companies confirming their contingency plans; the EY has reported that a total of 75 out of the 222 firms had developed plans ahead of Britain leaving the EU.
The survey came just as the London mayor; Sadiq Khan, warned MPs that jobs and investments were at risk in the capital and other UK cities. This is because “the government was not doing enough to safeguard services in Brexit talks.”
Released on the 25th June, EY’s Financial Services Brexit Tracker found that there has been a two per cent increase (34%) since March, in the number of companies confirming their plans to move some of their operations or staff from the UK.
About a quarter of the firms have plans to relocate staff to one or more of the EU locations; with Dublin and Frankfurt being the most popular locations for relocation. Currently, 32 companies have confirmed plans to move staff from the UK. This is up from 28 in the first quarter.
While most firms are yet to iron out the finer details of their relocation plans; the survey shows that there is evidence to suggest that they are making decisions about the future of their employees in the UK.
Speaking to the House of Commons Public Administration and Constitutional Affairs Committee, Mr Khan pointed out that trade in services accounted for about 40 per cent of UK exports to the EU. However, the sector accounted for more than 90 per cent of the economies of London; Manchester and Edinburgh. As well as more than 80 per cent in Leeds and Birmingham.
Are you looking to put together a contingency plan ahead of Brexit, just in case things don’t go ahead as planned?
Galleon International has a team of global mobility experts who will put together specialised and unique programmes for your corporate relocation. For more information on how Galleon International can be here to help your business and its employees’ overseas move; get in touch today on 01708 868 068.