UK services industry sees little joy in post-Brexit world

LONDON (AP) — Prime Minister Boris Johnson’s decisive victory in last week’s general election provided little comfort to Britain’s once world-beating financial services industry, which has been battered by Brexit for more than three years.

While Johnson’s triumph buoyed optimism that he would end the country’s long-running political stalemate, it virtually guarantees the U.K. will leave the European Union on January 31 and starts the clock on efforts to negotiate a trade deal with the bloc by the end of 2020.

As prime minister prepares to outline his government’s priorities Thursday in a speech to lawmakers, the financial industry is seeking assurances that service businesses like theirs won’t lose the unfettered access to European markets that has underpinned growth for more than four decades.

“Services are the lifeblood of the UK economy and vital to its growth,” said Catherine McGuinness, policy chair at the City of London Corp., the historic base for the UK financial services industry.

“Politicians across the spectrum should recognise that financial and professional services make a significant contribution, employing 2.3 million people across the country – two-thirds outside of London.″

The UK financial industry, whose roots stretch back to the investors who financed the British Empire and insured its ships, has flourished as a gateway to Europe for companies from around the world. That helped make London the world’s top financial center, before Brexit eroded its advantages.

New York moved past London into the top spot last year, according to a ranking of 114 financial centres compiled by Z/Yen, a London-based commercial think tank, and the China Development Group.

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