Transition deal threat to financial institutions.
FINANCIAL firms will pull the trigger on "irreversible" Brexit job relocations in the new year unless the Conservatives agree a transi tion 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 discuss ing a transitional deal any longer if they want it to hold any real value.
"Firms are beyond the planning stage now. If they haven't done so already, most will be ready to press go on their contingency plans in the new year.
"They can still take their foot off the accelerator if a transitional deal is agreed but, without pro gress soon, it may be too late. Once businesses start moving, there is no reverse gear. It is sim ply 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 stream of banks - Citigroup, Mor gan Stanley, Daiwa, Sumitomo Mitsui Financial Group (SMFG) and Nomura - have already ann ounced that they are relocating operations and staff from Britain to the EU in the wake of Brexit.
THECITYUK believes 75,000 jobs and PS8-10bn in annual tax reve nues are at risk if the UK crashes out in 2019 without a deal.
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|Publication:||The Journal (Newcastle, England)|
|Date:||Oct 17, 2017|
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