It is "crunch time" for UK finance firms in Brexit negotiations, an influential
lobby group has said.
British businesses and the economy as a whole need a transition period as the
UK leaves the European Union, The City UK said.
Economist and former Brexit campaigner Gerard Lyons also said a transition
period would be good for Britain.
The UK government said it was making sure business voices were heard in the
negotiations.
On the eve of Prime Minister Theresa May's much-anticipated speech on Brexit in
Florence, the lobby group warned the UK is in danger of losing its place in the
financial world much in the same way the Italian city did after the
Renaissance.
Florence - a warning from history
The City UK said companies are already moving jobs overseas as Britain prepares
to leave the European Union, and further faltering in Brexit talks will lead to
irreversible decisions.
"For our industry, this really is crunch time," The City UK chief executive
Miles Celic said.
Around 10,000 finance jobs will be shifted out of the UK or created overseas in
the next few years if Britain is denied access to Europe's single market, a
Reuters survey has suggested.
Business 'needs clarity'
The financial sector wants clarity.
"Many firms are already moving parts of their operations out of the UK and
Europe. When they've gone, it's hard to see them coming back," Mr Celic said.
"Even if the UK and EU agree the best possible Brexit deal by 2019, without
urgent clarity on transitional arrangements, business will assume the worst and
act accordingly," he said.
A spokesperson for the government said it is working with the business
community to give it "as much certainty as possible as we move through the exit
process."
"We have been clear that we believe a time-limited, implementation period is in
the interests of both the UK and the EU and that negotiations on the future
partnership should begin as soon as possible."
"We have intensified our engagement with the business community to ensure their
voice is heard and reflected throughout our negotiations giving them as much
certainty as possible as we move through the exit process," he added.
Transition period
UK economist and writer Gerard Lyons, who campaigned for Brexit, told the BBC
that a temporary transition period would be good for the UK to avoid a "cliff
edge".
However, he said that not all business fears were justified. "Sometimes
contingency planning is too extreme," Mr Lyons said, adding that "regulators
can't determine where the market goes to."
He said that it would not be in the best interests of the UK or the EU for
London to be dismantled as the major European financial hub.
"It is non-European business that will benefit," Mr Lyons said.
Having so many financial services in London increases competition and drives
down prices, and fragmenting that market would hand the prize to a financial
centre outside Europe such as New York or Singapore, he added.