If the United Kingdom leaves the EU without a deal may see almost half a million Britons struggle to pay their mortgages as their jobs will be no more. This report is according to research that has been conducted by the European Union statistics department as the key vacancies in the Finance industry in London plummeted to unexpected levels in the last three years. Failure to strike a deal would also see the United Kingdom lose over $68 billion in direct investment according to another report released by the Cambridge econometrics which was commissioned by the Mayor of London, Sadiq Khan.
The predictions came up with five scenarios that would result from UK exit from the European Union. The report also highlighted the economic impact that Hard or soft forms of Brexit would have on the different industries that are the backbone of the British economy such as finance, construction, and manufacturing. The release of the report came hours after surveys conducted by hiring company Morgan McKinley which inferred that there were employment opportunities in the finance industry in London dropped by a whopping 52% in December of 2017.
This is the most significant that has been recorded in three years. The labor market also experienced a 375 drop after every year which had underscored the high expectations that were promised when politicians campaigned for Brexit before the referendum. The report also noted that the parties experienced in the December holidays instead of recruiting new staff also contributed to the drop in London’s financial industry. The Cambridge’s study worst case scenario is when the British Premiere, Theresa may fail to have a two-year transition secured that would enable the United Kingdom to safely and efficiently exit from the European Union.
The two years of transition would also enable the smooth passage of business through Britain’s capital which would in itself lead to the creation of over 87,000 employment opportunities and give leeway for a decade of slower growth. The negotiations between the United Kingdom and the European Union are set to restart in March of 2018. In the talks, critical aspects of the British economy are set to be brought forward such as a renewed battle for trade discussions and agreements together with the financial status of the banks. May confirmed that she had not gone through the reports but was very optimistic that the UK is going to strike an excellent deal with the EU on how to exit.