City fears for the future of its international workforce

The City of London Corporation has issued a plea to the government and to Brussels negotiators to reach a deal to secure the future of the tens of thousands of EU workers who are essential to the UK financial sector.

EU expats significant section of London workforce

The corporation issued figures showing that 12 per cent of the 455,000 workers in the City’s financial sector were born in other EU nations and that, proportionately, many occupied more senior positions.Catherine McGuinness, who chairs the corporation’s policy committee, said, “The ‘London is open’ tagline will wear thin if politicians don’t provide answers for our international workforce. This uncertainty also affects workers up and down the country.“While City firms are rightfully preparing their contingency plans, it is a lot harder for individuals and their families to plan for the future and unfair that they should be unsure of their position in a country to which many of them have contributed so much.“It is all too easy to forget the human angle and the impact that Brexit has caused. We urge the government and EU27 to reach agreement on the status of EU nationals as soon as possible.”The City’s call came as the British Chambers of Commerce (BCC) demanded the Conservative Party, which is currently holding its annual conference in Manchester, demonstrate “competence and coherence” in Brexit talks and in its domestic policies to deliver a stable business environment.Speaking in Manchester where he will host a conference fringe meeting on Tuesday with Chancellor of the Exchequer Philip Hammond, Adam Marshall, BCC director-general, said, “Business people across Britain are growing impatient with division and disorganisation at the heart of the party of government, and have made it very clear that they expect competence and coherence from ministers as we move into a critical period for the economy.“Public disagreements between Cabinet ministers in recent weeks have only served to undermine business confidence, not just on Brexit negotiations, but also on the many issues where firms need to see clear action from government closer to home. Action to cut the up-front cost of doing business, build key infrastructure, help firms plug increasing skills gaps, and to support investment and risk-taking must be front and centre on the government’s agenda.“On Brexit, businesses are clear that they want a comprehensive transition period, lasting at least three years, and pragmatic discussions on the future trading relationship between the UK and the EU firmed up by the end of 2017. They will judge the government’s progress on Brexit by this yardstick – not by public speeches or pronouncements – and will take investment and hiring decisions accordingly.”

Maintaining business friendly tax

The Institute of Directors (IoD) also issued a call to Mr Hammond to resist pressure to increase public spending if it meant dropping business-friendly tax changes in November’s Budget.Publishing a survey showing a gradual decline in business confidence since the beginning of the year, the IoD said firms’ investment planning had now fallen into negative territory for the first time.

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Stephen Martin, IoD director-general, said, “We know the chancellor has a difficult balancing act to perform, but amongst all of the loud voices crying out for more help, we urge him not to ignore the businesses feeling hesitant about their investment decisions.“Our surveys show that businesses are not immune to their political surroundings and confidence cannot be taken for granted. It is not all doom and gloom, business leaders are optimistic by nature, and will take every opportunity they can find to grow their companies.“But the government has a responsibility to help develop the right environment. Brexit is not an excuse for domestic inaction, but a jolt to make politicians enact reforms to boost the UK’s economic competitiveness.“The Treasury naturally looks at one side of the equation, what tax reliefs will look like in the Budget book. Businesses are not asking for a big splurge, but for specific and targeted reliefs to encourage firms and individuals to invest.“Ultimately, if business investment dries up, the challenges we face in areas like skills and infrastructure will become much more difficult to address.”For related news and features, visit our Residential Property section.Relocate’s new Global Mobility Toolkit provides free information, practical advice and support for HR, global mobility managers and global teams operating overseas.Access hundreds of global services and suppliers in our Online Directory  

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