According to the Confederation of British Industry, access to EU markets is a key attraction for international financial services firms.
It suggested a British withdrawal from the single market could trigger mass departures: “European firms could relocate ‘back home’, as could foreign firms which depend on the deep access to the EU that membership provides.”
An exit would reduce the UK’s global profile, it added: “London’s place as a global financial centre rests partly on its position at the crossroads of the competing regulatory regimes of the US and EU.”
The EU’s free movement of labour has allowed firms to draw on a large pool of talented staff, the report said. In more than 45% of cases where the UK was chosen as a location by firms, access to skilled staff was a core reason.
The UK plays an important role in influencing the direction of EU financial services legislation, the CBI continued. However, in the case of a UK exit, it said British firms will still have to meet many EU standards, without any say in drawing them up.
More than three-quarters of CBI members say they would vote for the UK to remain a member of the EU if a referendum was held tomorrow. The trade body estimates households benefit by nearly £3,000 per year from EU membership.
