BREXIT: EU withdrawal agreement bill passes

The House of Commons has approved the EU Withdrawal Agreement Bill at second reading. Commenting on the approval Chief Executive of UK Finance Stephen Jones said “This vote takes us one step closer to an exit from the EU but is only the beginning of what is required to restore the predictable legal and economic backdrop necessary for businesses including financial services firms to operate successfully.”

“The hard work must now continue, and we hope the UK and EU will focus quickly on the sector-specific detail regarding our future relationship that needs to be agreed to avoid the renewed threat of a cliff-edge exit at the end of 2020. Services account for 80 per cent of UK GDP and financial services specifically deliver a significant balance of payments surplus for the UK, and must therefore be at the centre of the UK’s negotiating position.”

“Both sides will benefit from maintaining deep and integrated financial and capital markets, ensuring firms can continue providing key cross-border financial products and services to their customers.”

“The UK should also work with the EU to build a clear institutional mechanism for regulatory dialogue as well as maintaining a strong voice at a global level to influence standard-setting bodies key to the industry.”

National Chairman of the Federation of Small Businesses, Mike Cherry, said: “For small firms, the last three years have brought little cheer with Brexit uncertainty leading to slumping confidence, stunted growth and shackled investment.”

“Armed with a healthy majority, the Government has today taken the first opportunity to try and banish the memories of these lost years by passing the first stage of the Withdrawal Agreement Bill.”

“The Government has left little doubt about the direction of travel it is intending to take as we leave the European Union and enter what remains of the transition period. This clarity of purpose will hopefully instil confidence in the small business community that they can get back to the business of investing, creating jobs and growing.”

“Those negotiating a new comprehensive trade deal with the EU will need to make the most of their festive break as the challenging timescales given leave little room for mistake. Securing this agreement is critical to the many small businesses that trade with the EU single market and EU customs union. We want these businesses to have tariff and quota free access as well as seeing non- tariff barriers kept to a minimum.”

“This can only be achieved if Government and the business community work together. We stand ready to provide evidence and insight into developing a small business-friendly trading agreement including what we need to see contained within a dedicated small business chapter.”