LONDON (Reuters) – A shift in banking and trading from London to the European Union after Brexit could mean a loss of 3-5 billion pounds ($3.9-$6.6 billion) a year in taxes, an academic and former banker told a committee in Britain’s House of Lords on Wednesday.
FILE PHOTO: A general view of the City of London by night in London, Britain October 31, 2019. REUTERS/Yara Nardi/File Photo
David Miles, professor of financial economics at Imperial College, told lawmakers on the EU Financial Affairs Sub-Committee that “quite a lot” of financial activity like banking and trading could leave Britain after it leaves the EU on Friday.
The bloc is Britain’s biggest export market for financial services, worth roughly 30 billion pounds a year, and half could be lost, said Miles, a former chief UK economist at Morgan Stanley bank.
He downplayed the impact of that drop, however, pointing out that as activity moved, staff not wanting to relocate would almost certainly find other highly-paid jobs to ease the tax hit for Britain.
Committee member Andrew Turnbull, a former head of Britain’s civil service, suggested Miles was probably “blase”, given that moves in activity could be accompanied by ancillary services like accounting and legal, and involve other economic sectors.
Wednesday’s committee hearing was called to assess the