Search

‘We’re heading for crisis if bank staff quit Canary Wharf over hard Brexit’ London MEPs warn

PUBLISHED: 15:34 01 August 2017 | UPDATED: 15:42 01 August 2017

The EU Parliament in Strasbourg. Picture: Mike Brooke

The EU Parliament in Strasbourg. Picture: Mike Brooke

Mike Brooke

London members of the European Parliament are calling for urgent UK government action to prevent a looming financial industries crisis in the wake of thousands of jobs being lost at Canary Wharf over Brexit.

Still there... the Union flag alongside the other 27 flags of Europe. Picture: Mike Brooke Still there... the Union flag alongside the other 27 flags of Europe. Picture: Mike Brooke

Other EU member-states are competing to bid to provide new homes for two agencies being relocated out of east London when Britain quits the union.

The European Banking Authority and the European Medicines Agency which employ 1,000 staff between them at Canary Wharf are the first ‘spoils’ of Brexit by the 27 remaining countries.

The HSBC bank has already confirmed plans to move 1,000 jobs to Paris in the event of a ‘hard’ Brexit.

The East London Advertiser which covers Canary Wharf has been to Strasbourg seeking the views of our MEPs, both Tory and Labour, on the effects of quitting Europe.

MEP Dr Charles Tunnock on job losses when the banks quit London. Picture: Mike Brooke MEP Dr Charles Tunnock on job losses when the banks quit London. Picture: Mike Brooke

“I am calling for a change of heart and a softer exit from Europe,” Conservative Dr Charles Tannock told the paper.

“These sunlit economic uplands aren’t going to be there for Britain as the economy starts to contract if we persist on the ‘hard’ Brexit trajectory.

“There will be a heavy price to pay in jobs and damage to London’s economy.”

The competition on who gets the two agencies when they leave Canary Wharf and the business that comes with them is being decided in November. The agencies attract 40,000 hotel stays a year for visitors which had boosted east London’s hospitality industry.

MEP Seb Dance... 'Devastating effect on jobs' without free movement of people. Picture: Mike Brooke MEP Seb Dance... 'Devastating effect on jobs' without free movement of people. Picture: Mike Brooke

Moving out will have “a devastating effect” on hotel and catering jobs if we stop free movement of people, according to Labour London MEP Seb Dance.

“It will increase unemployment and won’t create space for jobs,” he insists.

“We’ll have a demographic crisis with our population getting older and living longer without an influx of working-age people.”

He wants the government “to be honest” about the implications of quitting the EU.

European Parliament that Britain is about to quit. Picture: Mike Brooke European Parliament that Britain is about to quit. Picture: Mike Brooke

“Leaving the single market and the customs union weren’t in the referendum,” he points out. “There is certainly no mandate for that.”

HSBC has confirmed plans to move 1,000 bank jobs to Paris in the event of a hard Brexit. Five other major banks have already begun relocating hundreds of staff over fears of a staggered deal on leaving the EU, which have to be in place by September next year on a tight timetable if they need to leave the UK.

London voted overwhelmingly to remain in the EU, with 68 per cent in Tower Hamlets which includes Canary Wharf, but all that will be lost after 2019 as Britain departs.

Latest East London News Stories

Yesterday, 17:00

Cancer survivors in east London are set to benefit after a £2.5 million grant was awarded to develop and test a new talking-based therapy.

Yesterday, 10:00

Wondering what the weather has in store for us this weekend? Watch our three-minute Met Office video forecast.

Yesterday, 08:00

Letters, contributions and comments sent in to the Advertiser this week.

Fri, 15:58

Children traded the classroom for curation when they took over the Museum of Childhood for the day.

Fri, 14:27

The owner of an Indian restaurant in Whitechapel who cooked the books in a tax swindle has been given a suspended jail sentence and a hefty fine.

Fri, 11:33

Bookworms, comedy fans and music lovers can enjoy a free event taking place in the borough today and tomorrow.

Fri, 07:00

Driverless cars and buses are set to become a common sight in Queen Elizabeth Olympic Park.

Thu, 21:04

Two men have been found guilty of killing a 60-year-old man in his Bow Common home after he wouldn’t help them to rob a drug dealer.

Newsletter Sign Up

Sign up to receive our regular email newsletter

Most read news

Show Job Lists

Competitions

Having a brand new kitchen is something that lots of people want but can only dream of. Sadly keeping up to date and making our living spaces as nice as they can be is a costly and incredibly stressful business. Even a fresh coat of paint makes all the difference but isn’t easy or quick.

Who wouldn’t love the chance to go on a shopping spree. Imagine being able to walk into a shop and choose whatever your heart desires without having to worry about how much it costs.

Digital Edition

cover

Enjoy the
Docklands and East London Advertiser
e-edition today

Subscribe

Education and Training

cover

Read the
Education and Training
e-edition today

Read Now