The UK’s financial services sector could lose up to 75,000 jobs and billions of dollars in tax revenues in case of a “hard Brexit” from the European Union (EU), a new study shows.
The study commissioned by lobby group TheCityUK outlined different scenarios for the potential consequences of losing access to the single market, one of the main concerns surrounding Brexit.
Under the so-called hard Brexit formula, the UK may lose its preferential access to the EU’s single market and suffer from soured relations with other EU members.
Britain and the EU are at odds over a string of issues, particularly the UK’s inclination to remain a member of the European single market after leaving the bloc, a decision that was taken by nearly 52 percent of British voters in June.
The report, which was released Tuesday, paints a “lowest access scenario,” where the UK’s relationship with the EU is largely determined by World Trade Organization regulations.