It's #Thursdaythread time! ⏰
Today we released a NEW report by @drsarah_hall, @DrScottJames, Lucia Quaglia, @MartinHeneghan, @jillongovt.
The #UK is predominately a #services economy, contributing 81% to the economy in 2019 & around 30m jobs.
Internationally, services are a UK success story they account for a higher proportion of our total exports than in countries like the #US & #Germany.
#London accounts for 42% of the UK’s service exports & the South East is the next largest contributor (17%)
The remaining 41% is divided between the other 10 #UK regions. In #NorthernIreland, #services account for 22% of its exports, with sales focused in #GB & #Ireland.
In regions, #towns and #cities whose economies have not done well in recent years, a large share of individuals work in #services in the public sector
But the UK’s lucrative business services sector is concentrated mainly in the UK’s cities and southern towns.
#Services are broad and diverse: they include IT and hairdressing, architecture and the arts, health services, education and financial services
The EU’s single market is the primary destination for #UK services exports. (The UK runs a trade surplus with the #EU in services.)
The sectors set to be hardest hit at the end of #transition are those that have used the single market to develop their export markets most intensively.
The largest category of #services exports is ‘other business services’, accounting for around 1/3 of all UK service exports.
The #EU single market enables greater cross border services trade than is typical of free trade agreements.
When the UK leaves the single market, services will be traded either on the basis of a new free trade agreement between the UK and the EU or without one.
There is no guarantee that a trade deal will be secured on #services given the distance between the sides
The #UK emphasises the need for its regulatory autonomy
The #EU insists on conditions to remove the risk it perceives of regulatory competition from the UK
Without a trade deal, #UK companies would face significant new barriers to doing business in the #EU.
But access to EU markets for UK services will be reduced and more precarious with or without a deal.
In financial services, for example, access will depend on an equivalence decision that could be withdrawn with 30 days’ notice.
The govt’s migration proposals may also lead to staff shortages in service sectors, many of which rely on workers who do not meet salary thresholds.
The #Covid19 crisis is likely to impact the services sector in ways that are not yet clear.
Some businesses have managed to operate through the restrictions, others have shut down.
Brexit will shape the post-Covid economy & will have significant regional and national impacts.
This is just a snapshot of the report and it is well worth your while reading the whole thing, which is here 🔻
ukandeu.ac.uk/wp-content/upl…
Share this Scrolly Tale with your friends.
A Scrolly Tale is a new way to read Twitter threads with a more visually immersive experience.
Discover more beautiful Scrolly Tales like this.