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'No deal' Brexit could cost Britain about 500,000 jobs, says London mayor

The study said that in a no-deal scenario, the industry that fares the worst will be financial and professional services, with as many as 119,000 fewer jobs nationwide

Reuters  |  London 

London Mayor Sadiq Khan
Mayor of London Sadiq Khan gestures while addressing the media during his visit to Karachi. Photo: Reuters

could lose almost 500,000 jobs and 50 billion pounds ($67.41 billion) investment over the next 12 years if it fails to agree on a trade deal with the European Union, according to a report commissioned by Mayor

Cambridge Econometrics, an economics consultancy, looked at five different scenarios, from the hardest to the softest form of Brexit, and broke down the economic impact on nine industries, from construction to finance.

The study said that in a no-deal scenario, the industry that fares the worst will be financial and professional services, with as many as 119,000 fewer jobs nationwide.

"If the Government continue to mishandle the negotiations we could be heading for a lost decade of lower growth and lower employment," Khan said. "Ministers are fast running out of time to turn the negotiations around."

and the will soon begin the much harder task of defining their future trading relationship, after settling the broad terms of their divorce settlement last month.

A stand-off between and the over the future access to single market for London's vast financial services industry is shaping up to be one of the key battlegrounds before is due to leave the bloc in March 2019.

First Published: Thu, January 11 2018. 17:31 IST
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