Brexit exodus from London 'to create 80,000 jobs'… in Frankfurt

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More than 80,000 new jobs are set to be created in Frankfurt as Brexit sparks an exodus of bankers from London, according to estimates.

A new report released by a lobby group based in the German finance hub found there would be an expected influx of 10,000 financial services staff over the next four years.

The boost, fuelled by relocation plans and a banking exodus from London, will result in the creation of up to 87,667 new roles throughout the Rhein-Main-Region, the Frankfurt Main Finance group said.

The study measured Brexit’s effect on non-financial job growth in the city and the surrounding region across industries as diverse as real estate, auto trade, healthcare and technical services, and the rise in tax receipts for local government.

It predicts an extra 191 million euros (£176 million) in local tax revenues for Frankfurt per year, when accounting for the additional income tax, value-added tax and local business tax.

Even based on the report’s “prudent” scenario, the Brexit ripple effect would result in at least 35,913 new jobs outside of financial services, and an additional 136 million euros (£125 million) in annual tax revenues for Frankfurt.

“The job growth will further advance the economic strength of Frankfurt and the region. A real success story for all parties involved,” Hubertus Vath, managing director of Frankfurt Main Finance, said.

The news is another bitter blow to Brexit backers including Boris Johnson, who last year predicted that as many as 300,000 new jobs would be created within the UK if the country voted to leave the EU.

The now-foreign secretary was citing research from the Vote Leave campaign which claimed that the UK had missed out on 284,000 jobs due to the European Union’s failure to strike trade agreements with the likes of Japan, India and the US.

Instead, jobs across several sectors have been lost and the country’s powerhouse financial services industry has seen a steady stream of bankers shifted from the City into the EU, costing the Treasury millions in lost tax receipts.

Frankfurt is emerging as the main beneficiary of a post-Brexit jobs boom, securing commitments from a number of international banks, including Standard Chartered, since the referendum last year.

Citigroup has also notified its bankers of plans to bolster its Frankfurt office, creating 150 jobs.

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