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London mayor accused of relaunching 'Project Fear' with taxpayer-funded Brexit report

London mayor accused of relaunching 'Project Fear' with taxpayer-funded Brexit report

A study commissioned by London Mayor Sadiq Khan shows that nearly half a million jobs are under threat if Britain fails to strike a deal on future relations with the European Union before it leaves the bloc.

Up to 87,000 jobs in the United Kingdom capital are at risk if the country withdraws from the European Union without a formal agreement being reached during the negotiations between London and Brussels, the Evening Standard reported, citing Brexit impact papers commissioned by London Mayor Sadiq Khan.

Khan cited research from the Cambridge Econometrics consultancy which showed Britain could lose 50 billion pounds in investment over the next 12 years if it fails to agree a trade deal.

"The report shows that a destructive hard Brexit could do much worse economic damage in regions like the East of England than in London", he said.

The report found that 87,000 jobs would be lost in London alone with the capital's economic output predicted to be down by 2% by 2030.

The warning was issued in new independent economic analysis commissioned by the Mayor of London, Sadiq Khan.

Mr Khan has repeated his calls for this approach to be rethought, saying: "If the Government continue to mishandle the negotiations we could be heading for a lost decade of lower growth and lower employment".

Labour mayor Khan, who campaigned for Remain, said in a statement: "The analysis concludes that the harder the Brexit we end up with, the bigger the potential impact on jobs, growth and living standards". Ministers are fast running out of time to turn the negotiations around. "A 'no deal" hard Brexit is still a very real risk - the worst possible scenarios'.

Khan said he had commissioned and published the "Preparing for Brexit" report "because the British people and our businesses have a right to know the likely impact on their lives and personal finances". "Brexit and leaving the single market and customs union puts any hope of well-funded schools and hospitals and police on our streets under immediate and serious threat".

Citing the importance of European Union workers and funding programs to the U.K.'s creative sector, the Federation said it was vital to "ensure our future relationship with the European Union allows the very best talent to work both here and overseas".

Around 10,000 finance jobs will be shifted out of Britain or created overseas in the next few years if the country is denied access to Europe's single market, according to a Reuters survey of firms employing the bulk of workers in worldwide finance.