LONDON: June 03, 2016. The head of United Parcel Service in the UK Luis Arriaga has joined the CEOs of HSBC, BT Group, JP Morgan, PwC and corporate leaders in warning that a British exit from the EU “will damage the UK’s thriving service sector and put jobs at risk”.
Insurance industry leaders also warn that an exit from Europe will mean likely job losses among the 34,000 people employed directly in London’s commercial insurance sector.
Over 25 million people work in the UK service sector that includes retail, hospitality, transport, professional and financial services. According to a new report by Frontier Economics, the group contributes an annual £68 billion in exports to the UK economy.
Overall, 2,050,000 jobs in Britain are linked to the country's service sector’s exports to other EU countries.
Services now account for 79 percent of the UK economy – contributing £1.3 trillion to GDP a year.
In a statement against leaving the EU the CEOs noted: ‘Britain’s service sector includes everything from retail to the arts, from finance to education, and from hotels to architects. It accounts for around 80 percent of value added and 80 percent of employment, making it the jewel in the crown of British industries.
"As the leaders of some of Britain's biggest service businesses we believe that a vote to leave the EU would damage the UK's thriving service sector and put jobs at risk. We want to ensure that Britain remains a leader in this vital field, and that is why we support the UK remaining in the EU on June 23.”
The chief executives have also been joined by 60 start-up investors with over £14 billion under management in Britain who say tech companies rely on access to the Single Market and being able to easily recruit talented workers from across the EU.
In an open letter the investors said: “Every credible financial institution - from the IMF and the OECD to the Treasury - have made clear that Brexit would lead to an economic shock. Start-ups would be the biggest victims of such a shock, endangering the firms that everyone has come to love and rely on, and who will form major elements of our economy in the future.
“That is why those of us who can will vote to stay in the European Union and all of us urge Britain to remain.”
Last month UPS opened its first UPS Access Point in Vienna for package pickup and drop off at local businesses including neighborhood grocery stores, tobacconists and petrol stations. There are currently more than 15,000 UPS Access Points across Belgium, Luxemburg, France, Germany, Italy, the Netherlands, Poland, Spain and the UK.