John Nelson, former Chairman of Lloyd’s, has said that it is incumbent upon UK businesses to air their concerns about the trade implications of Brexit, and has argued that the country is dangerously unprepared for its split with the European Union (EU), according to This is Money.
In an interview with the publication, Nelson said: “I know many, many people are very concerned, particularly business people, but also politician friends of mine, and for some reason they seem to be holding their counsel. I think it’s a great shame.
“They should be speaking up, because I think the population do not understand the consequences of what we’re heading for at all.”
In terms of negotiating trade deals for the post-Brexit climate, Nelson alleged that the UK Government has made “not a jot” of progress over the past two years, adding: “And I wouldn’t expect them to. It takes years and years to do this.”
Nelson’s remarks reflect criticism from current Lloyd’s Chief Executive Officer (CEO) Inga Beale, who recently claimed that the new Brexit white paper was “very disappointing” and does not sufficiently cater for professional and financial services.
Meanwhile, the London Insurance and International Brokers Association (LIIBA) and re/insurance broker JLT Group have recently revealed that they are preparing for a no-deal Brexit, with LIIBA CEO Christopher Croft also slating the recent white paper, stating that it “has not reflected the strong feedback from our industry.”
Various insurers and reinsurers have also begun establishing new European hubs to ensure a smooth transition of operations following Brexit, while the Lloyd’s Market Association (LMA) recently reported that Brexit remains one of the most pressing concerns for Lloyd’s market Chief Operating Officers.
Speaking with This is Money, Nelson continued: “44% of our trade is with the European Union. You look at the way in which the UK has grown its service sector – not just financial services – and a large part has been helped by having freedom to trade within the EU, passporting rights.
“People who say it doesn’t matter – that we can do without that and negotiate our own free trade agreements – it’s fanciful, absolutely fanciful, the idea that we can do that.”
He added that, as a medium small economy, the UK simply does not have the status or authority to negotiate a favourable trade deal with the EU, making it all the more critical that businesses voice their anxieties now.
“I think they should be speaking up,” Nelson stated. “Businesses are after all the providers of the tax revenue and the prosperity in the country.”
