Don’t miss the latest developments in business and finance.

UK's Brexit plan called 'real blow' to City

Image
AFP London
Last Updated : Jul 12 2018 | 8:55 PM IST

The British government's new blueprint for Brexit today drew a firm thumbs-down from the City, which warned it would damage both the all-important finance sector and the wider economy, but industry appeared happier.

The government, partly to avoid the return of a "hard border" between the Republic of Ireland and British-ruled Northern Ireland, has been at pains to map out a future customs plan to govern post-Brexit trade in goods with the European Union.

But its new "white paper" gave little detail about the future of services, which account for 80 percent of the UK economy, including 2.2 million people employed in Britain's world-class financial sector.

"Today's Brexit white paper is a real blow for the UK's financial and related professional services sector," said Catherine McGuinness, policy chairman of the City of London Corporation, which administers the capital's finance-heavy Square Mile district.

"With looser trade ties to Europe, the financial and related professional services sector will be less able to create jobs, generate tax and support growth across the wider economy," she said.

"It's that simple."

Also Read

First Published: Jul 12 2018 | 8:55 PM IST

Next Story