TheCityUK backs PM May's proposed Brexit deal amid concerns of hard Brexit

British Prime Minister Theresa May's proposed Brexit deal is "infinitely better" than the alternative no-deal scenario that could inflict, "severe and unpredictable" damage on the economy, the chairman of lobby group TheCityUK John McFarlane said on Thursday.

"This has been recognised and the financial markets are telling us strongly about it," McFarlane said at the lobby group's annual conference in the British Midlands city of Birmingham.

Britain is due to leave the EU on March 29, 2019, but the sides must yet approve a divorce deal and the accompanying outline of their future ties.