Financial sector is priority for United Kingdom in Brexit negotiations

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The analysis shows that under the worst of the five scenarios modelled - leaving in March 2019 without a deal or transition arrangements in place - would see 482,000 fewer jobs across the country and a loss of £46.8bn in investment by 2030. Other sectors reported affected would include science and technology, construction and the creative sector.

German automobile industry could expect a loss of up to 3.8 billion euros (4.6 billion US dollars) in the Brexit year, because of the close interdependence of the suppliers with carmakers in Germany, Britain and other European Union countries, said the report named "hard Brexit and supply chain".

The most optimistic Brexit scenario outlined, of a two-year transition period leading to single market membership without the customs union would still lead to a loss of 176,000 jobs and £20.2 billion in investment.

THERESA MAY last night vowed she will not bow to German demands to pay if Britain wants the City to access Europe's single market after Brexit.

As part of the study, five scenarios were examined, from the United Kingdom remaining in the single market and customs union, to leaving both, failing to get a free trade agreement or a transition period, and invoking World Trade Organisation rules.

Government figures were reportedly looking into a "tailor-made" trade deal, with the United Kingdom remaining tied to the bloc's financial markets, The Times claimed.

"London is expected to experience a loss of 0.8pc (£4.1bn/€4.6bn) in Gross Value Added (GVA) by 2030 and 0.6pc (30,500 people) in employment under scenario two (compared to what may have happened if the United Kingdom remained in the single market and customs union), a loss of 1.9pc (£9.6bn/€10.8bn) in GVA and 1.6pc (83,800 people) in employment under scenario four, and a loss of 2.1pc (£10.8bn/€12bn) in GVA and 1.6pc (87,000 people) in employment under scenario five".

BREXIT could cost the United Kingdom almost 500,000 jobs in a worst-case scenario, according to a study published today which was commissioned by the mayor of London.

"It is not expected to be affected as much as the United Kingdom, in terms of GVA and productivity".

He said walking away from Europe without a deal would lead to a "lost decade of lower growth".

A Downing Street spokesperson said May provided an overview of the UK's position and update on Brexit negotiations.

The meeting - the first of its kind since Britain and the European Union made progress in divorce talks in December - was held "to discuss the opportunities and challenges for the financial sector posed by Brexit", a Downing Street spokesman said.

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