Progress on transition critical, says TheCityUK

Miles Celic, Chief Executive Officer, TheCityUK, said,

The services sector makes up around 80% of the UK economy – with financial and related professional services an important part of that. Its success is critical to continued economic prosperity. The relative slowdown in services demand could be explained by the ongoing uncertainty about what the UK’s future trading relationship with Europe is going to look like.

With Brexit looming, the most urgent and immediate priority for firms in our industry and beyond is clarity on transitional arrangements. Many companies are already planning for the worst case ‘cliff edge’ scenario and activating their contingency plans to ensure they can provide continuity of service to customers and clients. Urgent clarity from the UK and the EU on time-bound and legally-binding transitional arrangements by the end of this year at the very latest will allow those firms to decelerate these plans – and for many smaller businesses to avoid activating their contingency plans. The sooner this happens, the better.