Battered By Brexit, UK's Financial Services Industry Seeks Succour

Representatives of the sector say it’s time that talks, which have so far covered only trade in goods, focused on services too

Prime Minister Boris Johnson’s decisive victory in last week’s general election provided little comfort to Britain’s once world-beating financial services industry, which has been battered by Brexit for more than three years.

While Johnson’s triumph buoyed optimism that he would end three years of political stalemate, it virtually guarantees the UK will leave the European Union on January 31 and starts the clock on efforts to negotiate a trade deal with the bloc by the end of 2020. As the PM prepares to outline his government’s priorities, in a speech to lawmakers on Thursday, the financial industry is seeking assurances that service businesses like theirs won’t lose the unfettered access to European markets that have underpinned growth for more than four decades.

“Services are the lifeblood of the UK economy and vital to its growth,” said Catherine McGuinness, policy chair at the City of London Corp, the historic base for the UK financial services industry. “Politicians across the spectrum should recognize that financial and professional services make a significant contribution, employing 2.3 million people across the country two-thirds outside of London.”

Impact of Brexit