Britain’s finance sector is concerned it might lose its “passporting” rights, which ease access to business in the EU’s member states.
But according to a Bloomberg report, citing three senior figures in the British government, Theresa May will refuse to prioritise the protection of the sector after the UK has left the EU.
The Government has also reportedly dismissed the sector’s demand for an interim deal with the EU to help ease the transition out of the bloc. Downing Street had no immediate comment on the report.
Questioned about her pre-referendum warnings on the economic impact of a UK vote to leave the EU on Tuesday morning, the Prime Minister insisted she would start the process from a position of strength.
“I think it’s not about the UK, in some sense, being a supplicant to the EU,” she told the BBC.
“It’s about the reciprocity here. A good trade deal is going to be of benefit to us and to the EU.”
Theresa May revealed on Sunday that she will launch formal Brexit talks with EU leaders before the end of March 2017. The timing means the UK looks set to leave the EU by summer 2019.
Sterling dipped 0.7 per cent to $1.2747, its lowest level against the US dollar since 1985, extending its losses from the previous day. The pound fell 0.4 per cent against the euro to €1.1415, while the FTSE 100 was up 1.6 per cent at 7,094 points.
What experts have said about Brexit
What experts have said about Brexit
1/11 Chancellor of the Exchequer Philip Hammond
The Chancellor claims London can still be a world financial hub despite Brexit “One of Britain’s great strengths is the ability to offer and aggregate all of the services the global financial services industry needs” “This has not changed as a result of the EU referendum and I will do everything I can to ensure the City of London retains its position as the world’s leading international financial centre.”
2/11 Yanis Varoufakis
Greece's former finance minister compared the UK relations with the EU bloc with a well-known song by the Eagles: “You can check out any time you like, as the Hotel California song says, but you can't really leave. The proof is Theresa May has not even dared to trigger Article 50. It's like Harrison Ford going into Indiana Jones' castle and the path behind him fragmenting. You can get in, but getting out is not at all clear”
3/11 Michael O’Leary
Ryanair boss says UK will be ‘screwed’ by EU in Brexit trade deals: “I have no faith in the politicians in London going on about how ‘the world will want to trade with us’. The world will want to screw you – that's what happens in trade talks,” he said. “They have no interest in giving the UK a deal on trade”
4/11 Tim Martin
JD Wetherspoon's chairman has said claims that the UK would see serious economic consequences from a Brexit vote were "lurid" and wrong: “We were told it would be Armageddon from the OECD, from the IMF, David Cameron, the chancellor and President Obama who were predicting locusts in the fields and tidal waves in the North Sea"
5/11 Mark Carney
Governor of Bank of England is 'serene' about Bank of England's Brexit stance: “I am absolutely serene about the … judgments made both by the MPC and the FPC”
6/11 Christine Lagarde
IMF chief urges quick Brexit to reduce economic uncertainty: “We want to see clarity sooner rather than later because we think that a lack of clarity feeds uncertainty, which itself undermines investment appetites and decision making”
7/11 Inga Beale
Lloyd’s chief executive says Brexit is a major issue: "Clearly the UK's referendum on its EU membership is a major issue for us to deal with and we are now focusing our attention on having in place the plans that will ensure Lloyd's continues trading across Europe”
8/11 Colm Kelleher
President of US bank Morgan Stanley says City of London ‘will suffer’ as result of the EU referendum: “I do believe, and I said prior to the referendum, that the City of London will suffer as result of Brexit. The issue is how much”
9/11 Richard Branson
Virgin founder believes we've lost a THIRD of our value because of Brexit and cancelled a deal worth 3,000 jobs: We're not any worse than anybody else, but I suspect we've lost a third of our value which is dreadful for people in the workplace.' He continued: "We were about to do a very big deal, we cancelled that deal, that would have involved 3,000 jobs, and that’s happening all over the country"
10/11 Barack Obama
US President believes Britain was wrong to vote to leave the EU: "It is absolutely true that I believed pre-Brexit vote and continue to believe post-Brexit vote that the world benefited enormously from the United Kingdom's participation in the EU. We are fully supportive of a process that is as little disruptive as possible so that people around the world can continue to benefit from economic growth"
11/11 Kristin Forbes
American economist and an external member of the Monetary Policy Committee of the Bank of England argues that the economy had been “less stormy than many expected” following the shock referendum result: “For now…the economy is experiencing some chop, but no tsunami. The adverse winds could quickly pick up – and merit a stronger policy response. But recently they have shifted to a more favourable direction”
Last month, Andrew Tyrie, the chairman of the Treasury Select Committee, revealed the scale of the threat to the UK’s financial services sectors, saying nearly 5,500 British firms hold at least one passport to do business in another member state of the EU or the wider European Economic Area (EEA).
Financial institutions and banks including UBS and JP Morgan Chase have warned they could move staff out of London as the capital becomes a less important financial centre, depending on the terms of the departure from the EU bloc.
Lloyd’s of London chairman John Nelson previously described the UK’s vote to leave the EU as a “major issue”, saying it is working on contingency plans to ensure it can still trade across Europe when Article 50 is triggered.Reuse content