My greatest concern is regarding the financial markets. These are so significantly vital to us, and the Germans and the French and the Dutch have been on a massive power grab over the past few years - attempting to limit our presence in them, make London less of an attractive place for financial employers and employees (the bankers' bonus cap), attempt to level of the playing field (financial transactions tax, etc.).
I raised this point yesterday - international banking licenses - and it seems the BBC have published a
similar article today. Up until yesterday the international banks wanted to be based here for a variety of reasons:
- Our place in the EU allowed the international and domestic banks in London to trade throughout the EU
- Geographically we suited international business than other areas of the EU, our timezone connected the US with Europe better, it allowed London to operate Asian and US trading hours desks, and the world of finance works in English
- Tax-wise we were pretty competitive
The banking sector is a major contributor to the Exchequer - last year
PWC indicated that the contribution in the financial year to March 2014 was roughly 5.5% of total tax receipts (£31.3bn).
The Leave vote has essentially forced major contributors to the country's tax receipts to look at being based or move part of their operations abroad simply because once we leave the EU, they won't be able to transact with EU customers - they won't have access to the international banking licenses they need to trade in the EU. This is massive. This is also a massive kick to the stomach. We're forcing one of the key industries in the UK - and one of our main negotiating assets in any future trade deals - to make the move into EU territories. We'll lose vast amount of monies in reduced tax contributions from the banks, whilst also lose one of our key hands in negotiating procedures.