2 December 2017
BRITAIN’S powerful financial services sector has “nothing to fear” if Britain quits the EU on a “no deal” basis, a report reveals. In a paper for think-tank Politeia, lawyer Barney Reynolds suggested that if Britain leaves the EU without a deal it could be better for the City than if an agreement is signed.
The report is a blow to Remainers who claimed that Brexit will deprive the Treasury of billions of pounds in revenues as the financial services sector flees to Brussels and Frankfurt. Instead, the Politeia paper reveals that London is secure and can prosper further outside EU control.
It strengthens Theresa May’s hand as she approaches a crunch European Council meeting this month to move talks on to trade. The analysis by Mr Reynolds shows how French President Emmanuel Macron has already failed in his attempts to attract “thousands of jobs” in financial services from London to Paris.
Mr Reynolds notes: “Britain remains one of the most stable, predictable and transparent places where the financial sector can do business and trade globally and with the EU. That will not change after Brexit. A no deal outcome is not to be feared. “It is likely in the long term to have benefits which could even be as good as mutual recognition.”
He pointed out that EU clients can continue to use UK-based financial services without any arrangement in place and with Britain having no interference on its regulations. Mr Reynolds’ paper is the latest part of growing evidence that Brexit will be a major boost for the British economy.
The pro-Brexit group Economists for Free Trade has estimated that a “no deal” situation will help the UK economy grow by an estimated £135billion a year. A spokesman for Economists for Free Trade said: “Barney Reynolds correctly identifies that the UK must have an attractive plan B. “He has identified how financial businesses don’t need to move to the EU for the contingency of a no deal. “The UK should be optimising the environment here to ensure it remains competitive in a plan B scenario.”