The Central Bank of Ireland have produced a report which found the city’s financial district will stay rich no matter what the terms of the divorce bill. London lost its status as the world’s top financial centre to New York last year with experts blaming Brexit uncertainty on the fall. But its status as a major global finance centre is unlikely to be dealt a further blow when the UK eventually leaves the EU on October 31, the report said. The report said: ‘While a less open, productive and rich UK might influence the future path of the City, according to our analysis the impact of fundamental factors could be very small.’

The report added that London is subject to a ‘premium’ which could be sensitive to new trading arrangements post-Brexit. However, it suggested the financial sector was strong enough to withstand the ‘shock impact’ of a no-deal even if it led to firms leaving the city. It said: ‘How Brexit will eventually affect the City of London remains uncertain, even if several firms have already relocated from London to other EU countries in the aftermath of the vote.’ The report examined the future of global financial centres (GFCs) after Brexit from an EU perspective. The positive outlook comes in stark contrast to a growing number of industries warning Boris Johnson about the negative impact of a no-deal Brexit. The new Prime Minister has vowed to take Britain out of the EU ‘no ifs or buts’ on Halloween, deal or no deal.

His hard-line stance comes despite warnings from industry bosses that a no-deal could threaten small businesses, cause supermarket food shortages and plummet the UK economy into a recession. Today, bosses within the British meat industry said they were ‘in panic’ over the possibility of a no-deal Brexit. The British Meat Processors Association said overseas customers are already considering buying their meat elsewhere because the UK market posed too much of a risk. UK carmakers have also warned Johnson that a no-deal Brexit would be an ‘existential threat’ to their industry, which contributes £18.6 billion to the British economy. In contrast, The Central Bank’s research concluded the fundamental impact of Brexit could be very small on London’s financial sector, dubbed the ‘square mile’. However, it suggested this would depend on how many companies relocate to other parts of Europe. The analysis said that even if the City of London remains robust to hard Brexit, the impact of companies relocating to smaller centres like Dublin, Amsterdam or Luxembourg could be ‘quite material.’