The Treasury is preparing for the fire of European bureaucracy – fr

The Treasury is preparing for the fire of European bureaucracy – fr

However, personalities in Brussels are suspected of seeking to block the equivalence process with the aim of stealing business in London or extracting concessions in other areas.

A source from Whitehall said a basic finance deal has now been incorporated, and ministers believe the city is fully prepared for it.

The source said: “The situation was always going to be that we weren’t locked into their evolving settlement. It was always going to be thin.

While a number of important reforms are likely, the Treasury remains of the view that there should be no divergence for itself.

Chancellor Rishi Sunak offered equivalency to EU companies in many areas last November, but there has been no reciprocal move from Brussels.

He is now considering a number of changes to keep the city attractive after Brexit and will deliver a major speech later this summer, most likely in July. This will likely include a reduction in the corporate banking tax surcharge, which is set at 8% and applies to all banks with annual profits in excess of £ 25million.

Brussels has warned it is in no rush to start considering whether or not to grant equivalency, with a decision not expected until mid-year at the earliest. Slowing access is widely believed to encourage more businesses to move offices across the continent.

France warned this week it would delay the equivalency process further unless the UK forces Jersey to remove new conditions on fishing licenses that Paris and Brussels say violate the trade agreement on Brexit.


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