Job losses in the financial services sector will cost the British economy at least 2.7 billion

Job losses in the financial services sector will cost the British economy at least 2.7 billion over the next decade, according to a think tank.

That is just the value of salaries at todayís values which would have been earned by people in the 18 000 posts axed since October 2003 because of offshoring ñ the practice of exporting work to low wage economies such as India.

The figures have been collated by an independent think tank, The Corporate Social Responsibility Foundation, and were published at a conference on the subject in London on Tuesday December 7.

Tim Arnold of the CSR Foundation says: ìThis is the first time that the true value of the lost jobs has been publicly revealed. The exodus of work out of Britain, especially in financial services, has become a torrent, and the UK economy will struggle to deal with this crisis in the long term.

ìOur research shows conclusively that we need at the very least an equal level of inward investment to provide alternative employment, at the same time as a long-term policy to co-ordinate the efforts necessary to skill up the redundant workforce.î

Speakers at the conference included Hillary Benn, the secretary of state for overseas development, and Dr Alexander (Sandy) Scott, the director general of the Chartered Insurance Institute. It was chaired by Financial Times journalist Eamonn Rafferty and sponsored by Amcius.

Mr Benn congratulated The CSR Foundation for its ìvisionî in holding the ìtimelyî conference. ìCorporate Social Responsibility issues are becoming increasingly important as we live in a more inter-dependent, globalised world, and we should not close our eyes to the needs of other human beings. CSR is essentially about making sure that we treat everybody decently.î

Tim Arnold of the CSR Foundation says: ìThe result of offshoring in the UK is that many neighbourhoods which rely on the financial services sector could become ghost towns, such as former steel communities. We as a country need to recognise the problem and start planning accordingly now.

ìThe government needs to make sure that jobs which are exported from the UK take with them commensurate health and safety standards.

ìConsumers should vote with their wallets. They should penalise companies that treat employees badly and reward those organisations, such as Legal and General, which have refused to offshore jobs.

ìBosses seeking a short term business advantage which wrecks British industry will only listen to consumers who use their conscience as well as their cash when they buy goods and services.î