As the UK and EU enter the final stage of negotiations on their future relationship, the UK-based financial and related professional services industry calls on both sides to find compromises and reach a deal.
Despite the continued focus on issues relating to trade in goods, reaching a deal still matters for financial and related professional services trade. Reaching a negotiated agreement on the future will provide a basis of trust and goodwill that will be vital for a stable relationship for the cross-border provision of services on which consumers and businesses can rely.
Finalising a deal is essential to allowing the UK, EU and Europe as a whole to come together so we can better address the many other strategic and economic challenges we share, such as Covid-19, climate change and an ageing population.
Emma Reynolds, Managing Director, Public Affairs, Policy and Research, TheCityUK, said,
The art of agreeing a deal is recognising that both sides can emerge as winners. Failure means everyone loses. While issues remain, we must not lose sight of the longer-term challenges, which only become harder if the UK and EU cannot agree how to work together.
“There are still some big issues outstanding, such as how to continue regulatory and supervisory cooperation, maintain mutual access to skills and talent, manage data use and exchange, uphold the recognition of legal decisions and ensure operational resilience, but nothing which is insurmountable.
“Whatever the outcome, London and the UK will continue in its role as leading European and global financial centre. What is critical for our industry and for the UK’s future success is remaining open, outward-looking and continuing to be one of the most internationally competitive places to do business anywhere in the world.”
The UK-based financial and related professional services industry contributed £200.5bn to the UK economy in 2018. In the same year, UK financial services generated a trade surplus of £84.1bn, with around 40% of exports going to the EU. London remains Europe’s most important financial centre, both as a critical venue for EU firms to access international capital markets, and as a venue to manage and mitigate risk using UK clearing houses.