Brexit would be "disastrous", says City lobby group

A "Brexit" from the European Union would be disastrous for the country, TheCityUK, the UK's financial industry main lobby group, said on Tuesday.

Britain's financial industry accounts for 12 % of the national economy. TheCityUK Chairman, Gerry Grimstone commented that if the country left the EU “it would be disastrous for the City of London”.

"If there was a referendum tomorrow on whether we should leave the single market, I think you would get unanimous rejection of that in the City," Grimstone told Reuters.

The group also pointed out that a Brexit could prompt companies to leave the country, and urged the British government to hold the referendum on the UK's membership to the EU next year rather than wait until 2017.

Read more: UK referendum on EU membership could come before end of 2017

"People are beginning to hedge their bets by keeping alternative locations available. They are working out what to do if Britain does leave and setting up parallel structures that would allow them to leave," added Grimstone, who also chairs Standard Life Investments

Prime Minister David Cameron has pledged to renegotiate Britain's relationship with the bloc before holding a referendum on EU membership.

Read more: Luxembourg's PM to warn Cameron on EU treaty changes

The problem with the Brussels pipeline is it's like an enormously long python

TheCityUK proposed 25 EU reforms that would not need treaty changed, including the completion of the single market, which could boost the British economy by around £110bn billion pounds, the group said.

"The problem with the Brussels pipeline is it's like an enormously long python," Grimstone said.

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