• Matthew Holehouse, UK-EU Correspondent at MLex


• 20.01.2017 07:15 am
undisclosed

The news that investment banks are beginning to implement contingency plans for Brexit, involving the relocation of some staff and the acquisition of new regulatory permissions, comes as May is meeting the heads of Goldman Sachs, JP Morgan, Morgan Stanley at the World Economic Forum in Davos.

There is little she can give by way of reassurance for market access: the future regulatory framework for financial services will be determined in negotiations following the two-year Article 50 process, and will be subject to the political constraints set by her negotiating partners.

In normal times, a rash of relocations of key industries, that generate tens of billions in tax revenue for the UK exchequer, would be cause for alarm and political embarrassment.

But it seems to be ruffling few feathers in Downing Street: the Prime Minister appears to believe UK voters, like plastic surgery patients, were well aware that the changes they sought could come at significant pain and cost. As May told diplomats on Tuesday, they voted for Brexit with their ‘eyes open’.