City chief: Time is running out for Brexit transition

The City of London Corporation on Tuesday warned that time was running out for an “absolutely critical” Brexit transition deal as it gears up for a new mission to sell the attractions of the capital as a financial centre.

Policy chairman Catherine McGuinness’s comments come with weeks to go until a crucial EU summit at which the UK is hoping to secure a transition deal of around two years after Brexit in March next year.

The fate of financial services is still up in the air although the Government is said to be keen to agree a mutual recognition system for EU and UK regimes, which European negotiators have dismissed as a cherry-picking approach.

McGuinness said: “We’ve always said that this quarter was absolutely critical and we need to have the transition now agreed before the end of March with sufficient certainty for the regulators to rely on. For us the focus is on an ambitious free trade agreement covering services as well as goods.

“We need to look at a pragmatic and sensible answer not just for the UK but for the EU. In order to keep a global access to markets, mutual access to markets based on mutual recognition of regulations embodied in an ambitious free trade agreement would be the best outcome for all of us. We do expect a rocky ride along the way but that is still our goal.”

The policy chairman is lobbying for the Square Mile in Warsaw this week but next week heads to the French property festival MIPIM to press the case for London. In a survey of more than 2,500 institutional investors 89% view London as having the best pool of financial services talent in Europe, while 58% regard the capital as the best city in Europe to do business.

“Brexit is an issue but people are still keen to stay here and work here. It was clear to me last year how strongly other cities were marketing themselves - it is a key time above all when we should be making clear what London has to offer,” she added.

Businesses listed the City’s proximity to innovative and creative clients and tech hubs, the breadth and depth of expertise across financial and professional services, transport infrastructure, cultural offering, smart enabled office buildings and access to world-leading specialists, services and clients amongst the reasons that they continue to select the City of London.