Scottish Financial Enterprise, which represents firms including Royal Bank of Scotland and Scottish Widows, has told the Scottish Parliament’s Europe committee that firms have been drawing up “contingency plans” outlining how they could set up new EU bases or move operations to other parts of Europe.

In its submission to the committee, SFE called for “certainty” by the end of 2017 on the post-Brexit transitional arrangements.

It said: “Transitional arrangements should be agreed as soon as possible, to help manage uncertainty for businesses and bolster confidence. Due to the wide variety of activities and business operating models, different companies will require certainty by different cut-off points. Ideally there should be certainty on transitional arrangements by Q 3/42017.”

SFE also said that the “extent of any disruption” to Scottish firms “will depend on the way that individual businesses require to restructure their current operating models”.

Its submission continues: “Companies want to keep as much of their activities in the UK as possible, which needs to be done within the confines of regulatory and operational considerations. Companies also want to continue to service their existing EU customers and clients following Brexit, with as little disruption as possible.”

Scottish Finance Secretary Derek Mackay said: “This submission further highlights the danger posed by the UK Government’s extreme Brexit plans, which threaten jobs, investment and living standards.

“We are doing everything we can to resist an extreme Brexit and protect jobs and living standards, and are redoubling our efforts tour get he UK Government to reverse its position and stay inside the European single market.”