Next government should seek ‘wide-ranging’ review of Brexit agreement says City group
The next government should seek an “ambitious and wide-ranging” review of the UK’s relationship with the European Union (EU) as part of a wider strategy of boosting growth, a leading business group has said.
In a manifesto released today, TheCityUK urged the government to “actively engage” with industry over the first 100 days to understand its priorities ahead of the 2026 review of the Brexit deal.
It argued that the next government should lobby EU member states to seek to improve the Trade and Co-operation Agreement (TCA) in a “mutually beneficial way”.
The TCA came into force in 2021 when the UK officially left the EU. Although the agreement guaranteed tariff-free trade, it did not prevent the introduction of non-tariff barriers.
Services trade has performed surprisingly well despite the impact of Brexit. Industries like accountancy, consulting and legal services have all recorded blockbuster growth.
However, financial services, which is more heavily regulated, has suffered from the trade barriers.
Looking beyond the first 100 days, TheCityUK called on the government to ensure there are “regulatory dialogues” with key markets, such as the EU and the US.
The government should seek to engage the EU on areas of mutual priority, like financing the green transition and increasing economic resilience across Europe.
Keir Starmer has previously said he would seek a re-write of the TCA when it comes up for review but has ruled out rejoining the customs union or single market.
Beyond Brexit, TheCityUK called on the government to push forward on a number of ongoing reforms to the UK’s capital markets. This includes finalising reforms of the listing rules, implementing the Secondary Capital Raising Review and incentivising investment into UK equities.
The government should also provide “appropriate scrutiny” of whether regulators are delivering on their objective to promote competitiveness and growth.
“Effective reporting, scrutiny and accountability will help to ensure the UK maintains high standards that support its competitiveness, and inform where regulatory adaptation and operational enhancements are needed to boost regulatory efficiency and competitiveness,” it said.