Brexit: Tory MP calls for end to Brussels ‘red-tape’

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Ivan Zhiznevskiy reports that his company, 3S Money, has seen a 322 percent increase in non-UK businesses opening bank accounts in the UK between 2019 and 2020. This growth has continued since the UK’s official break from the EU at the end of 2020, with a 108 percent increase reported in the last twelve months.

This suggests that fears that the UK would lose its position as one of the most attractive places for foreign investment after Brexit were unfounded.

2021 was the best year ever for the UK’s tech sector in terms of investment, with a recorded £26billion in venture capital.

This surge in investment has proven crucial for the jobs market. A government report in June 2021 reported more than 55,000 new jobs in the year prior, thanks to foreign investment.

The investment does not only benefit London – for instance, the number of jobs in Manchester increased by 164 percent in 2021, while Cambridge was heralded as the leading regional tech city in the UK.

Mr Zhiznesky told Express.co.uk that the reason was partly that the UK offers something many EU countries do not – accessibility.

He described the “Amazon Prime” mentality of many investors, saying “people expect their service to be delivered instantly. If it isn’t, they begin to suspect it isn’t a good quality product. Obviously, that necessarily isn’t the case, but it’s how many businesses think now.”

This is the key to Britain’s success, he argues.

He said: “That’s what the UK offers in terms of financial services. I can go to a company’s house website and get a company registered in fifteen minutes. Then I can go to a company like 3S Money and get a bank account set up in a matter of hours.

“That mentality is also higher in places like China or the Middle East than in Europe, and the UK is keeping up with them.

“I also think it’s partly because of the fantastic entrepreneurial spirit that we have here.”

Mr Zhiznevskiy added that London’s sense of inclusion is crucial to promoting this level of investment.

He said: “In London, it’s possible to be taken seriously as an outsider, but try phoning an EU bank and speaking with a non-native accent. London remains the most multicultural city in Europe.”

The FinTech CEO was not sure if the surge of investment was a direct result of Brexit – but said that it certainly showed Brexit had not harmed Britain’s place in the global financial market.

He said: “Before Brexit went through, everyone was saying that the UK is finished. London hasn’t lost its place as a gateway hub to different markets – instead, its position has become stronger. It’s the epicentre of foreign investment.

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“The European Union is less open to foreign business initiatives. And Britain is completely opposite to that. That’s the key to success.”

Sam Cox, CEO of Fivefour Engineering Services added: “The biggest challenge to trading in the EU has been arranging bank accounts for non-EU organisations.

“The red tape involved in getting an EU bank account isn’t ideal for the fast-paced construction industry we operate in.

“Amid Covid-19, establishing our business in Sweden with a solid UK base is the best decision we have made as a business.

“The UK’s banking infrastructure continues to be the most entrepreneur-friendly in Europe and has been the most solid base from which to trade with the EU.”

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