In response to the financial services paper published by HM Government today on the prospect of a ‘no-deal’ scenario, Policy Chairman at the City of London Corporation Catherine McGuinness said:

“A ‘no-deal’ Brexit is the worst case scenario which is why we will continue to press for a new relationship that will be good for households and businesses on both sides of the Channel.

“Today’s paper demonstrates how the UK is putting in place measures to protect against negative impacts in a no-deal scenario for UK based customers and businesses, including EU firms doing business here. It is clearly over to the EU now to do the same.

“We welcome the recognition of the pressing need to find workable solutions to cliff edge issues, including contract continuity. This underlines the need for a deal that seals a transitional period which will give business the certainty it has been calling for.

“In the last five years the EU’s financial exports to the UK have increased by 51% while the UK has increased its exports to the Continent by 35% - figures which reiterate how vital it is that strong trade ties are maintained.

“The clock is ticking – there are just over 200 days until Brexit. It’s time the EU clarifies how trading arrangements might continue post-Brexit and takes steps to reciprocate the action taken by the Government and UK regulators; if the EU fails to do so it’s not just the UK this will affect, it will harm EU businesses and consumers too.”