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CBI predicts 12,000 finance job losses

The Confederation of British Industry has predicted 12,000 jobs losses in the financial sector over the coming months.

The CBI predicted 10,000 job losses in the last quarter, 2,000 short of the actual figure. It says this latest prediction for the next quarter is fuelled by lack of market confidence and a fall in the trade of finance between institutions.

It estimated there were around 1,000,000 jobs in the UK financial sector.

PriceWaterhouseCooper banking partner Andrew Gray says: “Job losses in the financial sector will be the headlines in the coming quarter.”

CBI deputy director general John Cridland says: “We are going to see a scale back of much more intensity in the coming months.”

The CBI says any sort of action by the Tripartite in the financial sector must come urgently and must tackle profitability and confidence.

Cridland adds: “Government policy has helped damage City stability. Ninety per cent of what we do is sweep up after politicians. They say they will do one thing then they do something completely different.

“We welcome the actions of the FSA over the last 10 days, it is right that the regulator should assess potential risks and use its powers to make judgements accordingly. It is different to Government intervening directly – the usual reaction for politicians is to miss targets which then has serious unintended consequences. Any intervention in the financial sector must be patient and must hit the target.”

This prediction comes ahead of its latest survey into financial sector trends and confidence.

PWC global finance services assurance leader Phil Rivett says: “It is all about confidence, decisive action by the authorities must be taken quickly.”

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