British banks will not keep their “passporting rights” for business in the EU after Brexit, according to the EU’s chief Brexit negotiator Michel Barnier, who said that “Brexit means Brexit, everywhere” and that there could be no exception for certain industries. Although not specified, this is contradictory to the statements by David David, British secretary.

“On financial services, UK voices suggest that Brexit does not mean Brexit,” said Mr Barnier in a speech in Brussels. “The legal consequence of Brexit is that the UK financial service providers lose their EU passport. This passport allows them to offer their services to a market of 500 million consumers and 22 million businesses.”

These passporting rights can account for £9 billion of revenue for the City.

The EU has also announced that, after Brexit, it will be relocating the European Banking Authority, an EU agency currently based in London.

According to The Independent, Mr Barnier added: “Those who claim that the UK should pick parts of the single market must stop this contradiction. The single market is a package, with four indivisible freedoms, common rules, institutions, and enforcement structures.

“The UK knows these rules very well, like the back of its hand. It has contributed to defining them over the last 44 years with a certain degree of influence. We took note of the UK decisions to end free movement of people and this means clearly that the UK will lose the benefits of the single market.

“This is a legal reality; the EU does not want to punish, it simply draws the logical consequence of the UK decision to take back control.”

“I regret that this ‘no deal’ option comes up so often in the UK public debate. Only those who want to ignore the current benefits of EU membership can say that no deal would be a positive result.”

Henry is Junior Reporter at IBS Intelligence, follow him on Twitter or contact him at: