There has been further speculation about the potential impact of the Government opting for ‘hard Brexit’. The Times reports civil servants have warned that more than £10 billion of tax revenue could be lost if financial firms are not protected in negotiations. City firms are reported to be compiling statistics to demonstrate the extent of the banking sector’s £31 billion annual tax contribution which could be lost if companies do not retain sufficient Single Market access, and consequently leave the UK. It is thought that more than a third of the banking sector relies on this EU access.
Although predictions will remain hesitant until further details about the exact details of the proposed Brexit deal emerge, KPMG’s first ‘100 UK CEOs’ survey suggests that more than half of businesses believe the UK’s ability to do “effective business” will be hampered by leaving the EU. The majority of companies questioned are also considering relocating their UK headquarters or operations as part of contingency planning.