The loss of well paid banking jobs due to Brexit can not be under estimated.
http://www.bbc.co.uk/news/business-38677504
So HSBC and UBS are saying 2,000 investment banking jobs are going to be out transferred of London.
What does this mean financially ?
So lets make some rough calculations:-
HSBC: 1,000 jobs to leave London.
If the average wage of an investment banker at HSBC is £115,000 then the wage bill that leaves London is:
1,000 * £115,000 = £115,000,000 (£115 Million)
UBS: 1,000 jobs to leave London.
If the average wage of an investment banker at UBS is £125,000 then the wage bill that leaves London is:
1,000 * £125,000 = £125,000,000 (£125 Million)
The taxs that will be lost by the UK Goverment:-
HSBC: Wage bill of £115,000,000 and assume 45% goes in total due to income tax and national insurance.
That is £51,750,000 (£51.75 Million)
UBS: Wage bill of £125,000,000 and assume 45% goes in total due to income tax and national insurance.
That is £51,750,000 (£56.250 Million)
A total loss of £108,000,000 (£108m). That is £108m less for HM Government to spend on UK defence, public services like hospitals, schools, universities or police.
Now what else you have to remember, is the salaries after tax, are known as disposable income.
HSBC wage bill of £115 Million, 45% lost in tax (£51.75 Million) leaving £63,250,000) to be spend by employees.
That money is for travel, paying for London Transport, on Oyster or Taxi / Uber. Eating in restaurants, or cinema or buying food at Tesco.
All money that is now lost.
UBS wage bill of £125 Million, 45% lost in tax (£56.250 Million) leaving £68.750) to be spend by employees.
That money is for travel, paying for London Transport, on Oyster or Taxi / Uber. Eating in restaurants, or cinema or buying food at Tesco.
All money that is now lost.
That money supports local jobs, cinema workers, supermarket workers, taxi drivers.
Also those 2,000 people are not paying council tax.
Average Council tax of say £1,100 a year.
2,000 * £1,100 = £2,200,000.00 (£2.2 million) less for councils which means less cash for social care, libraries, refuse/trash collection, street cleaning.
Brexit. Loss of cash for the UK. Serious indeed, and www.asadkarim.co.uk calculations are just on 2,000 jobs.