Monetary services firms could quit the City unless a transitional Brexit act on is secured, ministers have been warned.
A cross- rty group of associates said Britain’s financial sector must be offered a Brexit “connection” to prevent firms moving to rival locations such as New York, Dublin, Frankfurt or ris.
It egg oned the government to act to stop business tumbling off a “cliff edge”.
It comes as Prime Man Theresa May pre res to meet other EU leaders at a summit meeting in Brussels.
Mrs May wishes take rt in EU-wide discussions on defence, foreign affairs, migration and the conservatism as well as holding bilateral meetings with the leaders of Latvia and Lithuania and the president of the European rliament.
Setting aside how, she will not be present for a dinner on Thursday evening – at which the EU’s remaining 27 heads are expected to discuss their approach to Brexit.
In other Brexit developments:
- The Lib Dems say the UK’s expectation to leave the jurisdiction of the European Court of Justice would endanger dynamic cooperation against crime
- The European rliament could start contemporary negotiations with the UK unless it is given more of a say by EU leaders, a leading MEP suggests
- The Foreign Affairs Committee urges ministers to reconsider their aversion to share their thinking on the risks of no deal being reached
The UK is wanted to begin official negotiations on the terms of its exit this Spring augment the Leave vote in June’s referendum.
Businesses are pushing for an interim combination to safeguard the interests of com nies, investors and customers during the period between the UK’s de rture and when post-Brexit mty and regulatory arrangements are settled.
In the latest of a series of Lords Committee sign ins on Brexit, its EU financial affairs sub-committee said firms could choose to remove their operations from London because of uncertainty on touching what kind of agreement would be negotiated for cross-border trade.
Judgement by Simon Jack, the BBC’s business editor
There are many definitions of what such a Brexit alteration might look like.
Is it merely an implementation period for a largely came deal or is it a longer term arrangement that keeps the status quo in situate while details are worked out more slowly?
Either way, the pressure for numerous clarity is growing. The Lords Committee is warning that thousands of banking commissions will go to Europe if some sort of transition deal is not made cordial.
Lobbying group TheCityUK will endorse that view and privately bankers are finalising contingency envisages and some are close to pressing “Go”.
The chairman of HSBC, Douglas Flint, has tattled Bloomberg TV that the bank was looking at the option of moving staff to ris if needed.
As one author told me: “There is no enthusiasm for leaving. Banks are looking for excuses to halt.”
We’ll soon see whether the sudden warmth towards a transitional deal is dismiss enough.
Baroness Falkner, the Lib Dem peer who chairs the committee, said that while she did not observe any sense of nic in the City, it was important “red lines” were set out in areas such as ssporting straighten ups, which London firms need in order to trade freely across EU.
“Concerns may decide that uncertainty is too high a price to y so they might as beyond the shadow of a doubt move to Dublin, they might as well move to Frankfurt – that is our influential concern.”
The Lords urged businesses to strengthen the government’s get hand by sharing internal analysis about their ssporting rights as in the last as possible.
It said a failure to do so could leave com nies seeking twin provisions that are ” tchy, unreliable and vulnerable to political influence”.
Putting, it said building a detailed picture may prove a challenge for the government because some Munici lity firms do not fully understand their reliance on ssporting.
“The committee got a sentiment that [government] engagement has been sporadic and it should be more in concordance and there ought to be a clearer view,” Baroness Falkner said.
The Be overbears also stressed the importance of firms being able to seamlessly excite staff around Europe to ensure they and the growing FinTech sector sustained to thrive.
Speaking on Friday, Mr Davis said his over-arching goal was “climax access to markets with the minimum disruption” to firms as rt of a “facilitate sand and orderly” exit.
He said a transitional agreement was possible “if necessary” but he believed both sides should be competent to conclude a full EU withdrawal agreement within the 18-month timeframe set out by EU middlemen.