According to analysis commissioned by Khan, a no deal hard Brexit could lead to a lost decade - or even longer - of significantly lower growth, with Britain potentially having 500,000 fewer jobs in the worst-case scenario and around 68 billion USA dollars less investment by 2030 than would otherwise have been the case.
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.
British Prime Minister Theresa May met financiers from firms including Goldman Sachs on Thursday to discuss the impact of Brexit on Europe's financial capital, as London's mayor said Britain could face a "lost decade" of low growth and investment.
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Khan says the analysis shows "the harder the Brexit we end up with, the bigger the potential impact on jobs, growth and living standards". "It's astonishing that the Government has failed to do any proper impact assessments on what Brexit could mean for our economy", he said. 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".
Financial services jobs new to the market in December fell to 3,150 from 4,980 in December 2016, the report said, as uncertainty around the terms of Britain's exit from the European Union made companies in the city reluctant to hire. It has both refused to release such information and also suggested that such analysis does not exist.
Nearly 500,000 million British jobs could be lost if Theresa May walks away from the European Union without a deal, Sadiq Khan said today.
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"I've released these impact assessments because the British people and our businesses have a right to know the likely impact of the various options the government are considering on their lives and personal finances", claimed Khan.
The warnings come in a "worst case scenario" Brexit impact assessment commissioned by London's pro-EU mayor Sadiq Khan.
Other scenarios include continued membership of either the customs union or the single market, a transition deal phasing out membership, and a situation in which there is no transition deal, no membership of either the single market or customs union and no preferential trade agreement. Financial services jobs new to the market in December fell to 3,150 from 4,980 in December 2016, it said.
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Moreover, there would be 11,000 fewer workplaces in the science and technology sectors, 6,000 in the United Kingdom capital's creative sector and 5,000 in construction, according to the newspaper.