City firms ready for ‘irreversible’ relocations unless transition is agreed
Financial firms will pull the trigger on “irreversible” Brexit job relocations in the new year unless the Conservatives agree a transition deal imminently, a City lobby group has warned.
TheCityUK said the value of a transitional deal is “disappearing by the day”, as political and legal uncertainty dogs the Square Mile and big banks shift staff from London to the EU.
The group’s chief executive, Miles Celic, said: “EU and UK negotiators cannot delay discussing a transitional deal any longer if they want it to hold any real value.
“They can still take their foot off the accelerator if a transitional deal is agreed, but without progress soon, it may be too late. Once businesses start moving, there is no reverse gear. It is simply not efficient or economically viable to move operations twice.”
TheCityUK argues that, to avoid this scenario, an agreement must be reached by the first quarter of 2018 “at the latest”.
The warning comes after a steady stream of banks – such as Citigroup, Morgan Stanley, Daiwa, Sumitomo Mitsui Financial Group (SMFG) and Nomura – have already announced that they are relocating operations and staff from Britain to the EU in the wake of Brexit. Read More
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