CBI @10am: Trade in services: where next for the UK's relationship with the EU?

Speakers:

• John Foster, Director, Policy and Communications, CBI
• Amanda Tickel, Partner, Head of Tax Policy, Deloitte
• Peter Hogg, UK Cities Director, Arcadis
• James Harding, Co-founder and Editor, Tortoise Media (Chair)

Overview:

• John kicked off the session with an update on Govt announcements regarding home testing. Deadline extended for employers to register for workplace testing - now 12 April, and employers can now order tests for employees to collect and test themselves at home. This is something employers have long been calling for - so a positive development
• All panellists highlighted that issues with trading in services has been masked by the COVID-19 restrictions on business travel. Granted firms a 'grace period' and now is a good time to prepare before re-opening
• Amanda provided a summary of the terms for services included in the TCA - she highlight there isn't currently a full single movement at the moment for services like there is for goods. Five key areas:
  • On regulatory alignment: widely reported there isn't much included in TCA and none in financial services. So don't expect regulatory alignment
  • On the mutual recognition of professional qualifications (MRPQs): there is no mutual recognition of qualifications, but provisions for some legal services. However, new structure for trade bodies to get recognition but this will be country by country
  • On short-term business travel: you can travel to EU for business meetings (when restrictions lift) and you can spend 90/180 days in the EU. Just need to think about purpose of your visit
  • On delivering services on site (physical presence):  businesses are allowed to provide services under contract for up to a year but some small reservations included in the guidance
  • On data adequacy: good news in that GDPR adequacy has been adopted by the EU. Helpful for payroll services etc.
• Peter highlighted how the TCA is impacting work at Arcadis, supervision of work on site, signing-off design where you do physically have to be there and they have a concern their work is going to be challenging in the future, particularly when it comes to their competitiveness in bids. For example, there will be 27 different sets of requirements to mirror positions across whole EU. Will also impact SME sector within built environment industry will be harmed by some of the new regulations
• Arcadis are seeing changes when it comes to inbound and outbound business transactions with the EU - more questions and challenging but no tangible impacts yet
• John also flagged there's been a Memorandum of Understanding on financial services agreed in principle over the weekend - but recognise it's not going to be the same as before. We've been making the case to Government on importance of business-friendly guidance to help firms navigate.