At the moment, we see the country simultaneously grappling with the economic and public health repercussions of Covid-19, while negotiating future terms with Britain’s largest trading partner, the EU.
Interestingly, as we enter the final quarter of the year, these negotiations have heated up with Westminster and Brussels trading blows in recent weeks. Suddenly, a no-deal Brexit is once again a possibility.
Amid all this, more trade talks are being pursued with other major trading nations in an attempt to replicate the free trade access the UK currently enjoys as a member of the EEA.
Although there has been some recent progress in this area, with a UK/Japan free trade deal agreed upon on September 11, much more needs to be done to ensure British companies can access low-tariff trade after 2020.
Failure to do so, and the subsequent introduction of stringent tariffs on British exports worldwide, will likely dampen the UK’s future economic prospects.
Thus far, it seems these efforts have been successful, with the UK’s economy growing by 15.3 per cent in Q3 2020. The question now is whether this momentum can be sustained.
It is positive to hear that a vaccine could be on the horizon. However, the global rollout of an approved vaccine will be no easy feat. It also does not change the fact that the UK will still need to overcome the initial economic disruption caused by the latest lockdown.
The final quarter
To ensure the UK’s future credibility as a premier wealth management destination, the government must make progress on post-Brexit trade negotiations and Covid-19 containment.
By this, I do not mean effectively resolving these issues, but rather putting the appropriate policies in place that promote economic stability, confidence and certainty.
Of course, there are many unknowns still to contend with. However, based on what I am seeing at the moment, there is good reason to believe that both issues will be partially resolved in the coming months.
Doing so will secure the UK’s reputation as the top jurisdiction for wealth managers. I look to the coming months with keen interest.
Nir Sadeh is senior vice-president and head of private banking at The Bank of NT Butterfield & Son Limited
