Brexit to boost UK’s ties with Asia and the US

BRITAIN will benefit from closer links to the United States and Asia following Brexit, City bosses believe.

Three-quarters of executives in financial services surveyed by Lloyds predict growth in the UK ‘will be in line with or outpace the G7 average’ this year – and two-thirds said a stronger relationship with the US and Asia will boost the economy after Britain leaves the EU.

The survey of 120 board members and senior executives from leading financial institutions shows many are optimistic about the outlook for Brexit Britain.

The findings undermine claims from Remain campaigners that the vote to quit Brussels has hammered confidence and will be a disaster for the economy.

But financial firms warned that uncertainty surrounding the future of Britain’s relationship with the EU was the biggest risk facing them this year.

Edward Thurman, managing director at Lloyds commercial banking, said: ‘We knew that 2017 would be a year of political and economic challenges, but the signs are that the UK is well placed to deal with the risks.

‘Financial services firms are an important barometer of the economy, and despite uncertainties such as the future of our relationship with the EU and new regulatory pressures, they are confident that the outlook over the coming year is better than expected.’

The Bank of England and the Office for Budget Responsibility expect the economy to grow by 2pc this year. Among the G7, only the US is expected to grow faster, according to IMF forecasts. The Lloyds survey found 56pc of bosses think the economy will ‘remain resilient’ this year while 22pc expect it to do better than last year when Germany was the only G7 nation to grow faster.

But 18pc said they were considering moving operations out of the UK following the Brexit vote.

Thurman said: ‘The UK’s relationship with Europe is a cause for concern. Firms are clearly apprehensive about passporting and trade barriers. However, they are also alive to the opportunities, not least in the potential for new links with Asia and the US.

‘Firms are committed to maintaining a significant presence in the UK. While some plan to transfer certain operations overseas... in almost all cases they are only looking at a partial move.’