BREXIT SNATCH: Brussels leads charge to POACH British business from London after EU exit

The Belgian capital is promising British firms a “passport” to the European Union’s single market and a new location at the heart of the bloc’s decision-making processes in a fresh sales pitch to British firms. Cecille Jogogne, Secretary of State for Foreign Trade at the Region of Brussels, is leading the campaign to urge British firms to consider the Belgian capital as a new business hub after Britain leaves the EU. She said: “Insurance and financial services businesses that want to be at the centre of the decision-making process and help to shape the future of the UK-EU relationship should consider Brussels as their European headquarters.”

Her Foreign Trade department are organising a series of events at the Belgian embassy in London to wet the appetite of business leaders considering a move away from the British capital.

“Despite the UK and EU establishing in principle, a withdrawal agreement, there will still be plenty of room for uncertainty until the end of the transition period,” Mrs Jogogne added.

“Businesses operating both in the UK and the EU need to prepare now for any eventuality, and as a priority ensure that they can continue to operate seamlessly across the UK and EU.

“The only way to guarantee this is to establish a base of operation within the EU and, as the Brexit deadline bears down upon us, businesses need to make a decision now on where to place these operations.”

The future for British financial services is still unclear despite the publication of Theresa May’s withdrawal agreement and political declaration on the future.

In the deal, the Prime Minister focused on securing frictionless trade in goods through a common rulebook.

British access to the EU’s markets will depend aligning to the bloc’s standards on competition, tax, environment and social and employment protection.

But this level of detail does not translate into a bespoke deal on financial services, which has long been a demand of British negotiators.

Instead of granting “passports” to allow the City of London to operate across the EU, bankers and traders will have to rely on a so-called “equivalence” system, which allows Brussels to withdraw access at 30 days’ notice.

There is a joint UK-EU commitment to complete a review on a potential equivalence scheme by June 2020.

Despite the uncertainty, business leaders in London have rallied behind Mrs May’s controversial deal and have warned MPs not to vote the agreement down because that could trigger an accidental no-deal scenario.

TheCityUK, which represents City of London banks and insurers, argued the Parliament has a “straight choice” between the Prime Minister’s deal, which was signed off by the EU on Sunday, or a no-deal Brexit, “which offers only high risk, costs and disruption”.

Miles Celic, the organisation’s boss, said: “The focus must now be on securing the withdrawal agreement and the transition period it brings – which is critical for our industry and many others. There is much still to be negotiated to define the future relationship.

“The sooner that can get started, the better.”

Stephen Martin, the director general of the Institute of Directors, echoed the warning, insisting his organisation’s membership was entirely proposed to a no-deal Brexit.

He said: “The deal the EU approved provokes a wide range of reactions across the political spectrum, and indeed among business leaders, but the steer from our members is that avoiding no deal must be the main priority.”

Helen Dickinson, chief executive of the British Retail Consortium, said: “It is now up to parliament to ensure that we can have a transition period from 29 March and avoid a chaotic no-deal Brexit for consumers.”