'Undermining the UK's '1.5 bn world beating maritime services sector will do nothing to help the UK's economy or the Chancellor's fiscal position,' commented Baltic Exchange Chief Executive Jeremy Penn.
'These changes will inevitably lead to more international shipping companies moving out of the UK and therefore less business for UK maritime service providers such as shipbrokers, lawyers, insurers and financiers."
He added:
'We are very disappointed that the government has chosen to ignore advice from so many sources and to push these changes through. There is no doubt that rather than raising funds for the Exchequer, the effect of this move will be to cause the large-scale departure of shipping businesses and massive fallout in maritime services, with obvious consequences for government revenues.'
London is currently the largest centre worldwide for the provision of maritime services including shipbroking, ship finance, legal and arbitration services, insurance, accountancy, average adjusting and surveying and technical consultancy. Latest figures from International Financial Services, London (IFSL) suggest that the international shipping business generates the employment of 14,300 and generates net foreign earnings of '1.5 bn.
London faces competition from other cities to attract maritime business including Singapore, Dubai, Athens, Copenhagen, Geneva and New York.
