Due to Britain leaving the European Union, according to a report from a pro-Brexit lobby group, the U.K.’s biggest banks and financial firms could gain an additional 12 billion pounds ($14.6 billion) a year in revenue.
The Leave Means Leave campaign said in the report published recently that Britain could be helped in cutting “stifling Brussels red tape” to help U.K.-based financial firms grow sales by leaving the 28-nation trading bloc and ending membership in the EU single market for trade and services. According to the group, a fight for the survival of the euro area and a banking crisis would also be avoided by London.
In recent days, there have been several reports that have indicated that the City of London will be damaged by Britain leaving the EU, putting at risk tens of thousands of jobs and billions of pounds in revenue and taxes and this report comes in stark contrast to warnings from such numerous reports by global financiers. To relocate operations elsewhere in the trading bloc to offset the impact from Brexit, he’s looking at “incremental steps” said Barclays Plc Chief Executive Officer Jes Staley.
“The U.K. is facing a very promising and profitable future outside the EU. Being able to cut unnecessary regulation and bring back legal jurisdiction to the U.K. opens up a whole host of opportunity,” Richard Tice, co-chairman of Leave Means Leave, said in a statement.
According to a report earlier this month prepared by Oliver Wyman on behalf of TheCityUK lobby group, which represents the biggest banks and insurers in the country, Britain could be deprived of 10 billion pounds in taxes, lead to 70,000 jobs relocating overseas and cost financial firms in the U.K. almost 40 billion pounds in lost revenue due to the nation crashing out of the European single market. But according to Leave Means Leave, if all intra-EU trade from London collapsed, then only would that many jobs be at risk.
European financial companies may consider relocating to London following Brexit to keep access to the “deepest, most liquid capital market” in the region, said the Leave Means Leave report, in Bottom of Form
contrast to warnings over the relocation of business overseas. While Britain will also be able to “deregulate away unnecessary rules” following Brexit, firms in the U.K. will maintain access to EU markets because they already comply with the trading bloc’s laws.
On the other hand, exposing the growing rift within the Conservative party over the tactic, the U.K. government’s decision to keep the UK’s negotiating position on Brexit a secret was criticized by Andrew Tyrie, who chairs the parliamentary Treasury committee.
Warning that otherwise the government was “at risk of doing some damage — and that damage will increase as each month goes by”, calls for “some clarity on the direction of travel” were made by the prominent Tory backbench MP.
“We are leaving [the EU] and we need to begin a discussion about where we want to arrive. It is a good idea to have discussed it with the passengers and crew before you take off,” he added.
(Adapted from Bloomberg & Financial Times)