London will maintain its position as the leading global financial centre after Brexit, Chancellor Philip Hammond will tell Wall Street executives today.
Making his first appearance in the US since taking the top job at the Treasury, Hammond will seek to assuage fears that the UK’s position at the centre of a multi-trillion pound industry is under threat after the decision to leave the European Union.
The Chancellor is due to address financial leaders in New York, including bosses of Morgan Stanley, Citigroup and Goldman Sachs, ahead of Friday’s meeting of the International Monetary Fund in Washington DC.
“While the government has not finalised its future approach to our relations with the EU, the government’s position is clear; we want the best deal for trade in UK goods and services,”
“I will do everything I can to ensure the City of London retains its position as the world’s leading international financial center,” Hammond said in a statement released by the Treasury.
“One of Britain’s great strengths is the ability to offer and aggregate all of the services the global financial services industry needs.
“This has not changed as a result of the EU referendum result and I will do everything I can to ensure the City of London retains its position as the world’s leading international financial centre.”
Hammond is expected to say: “We will continue to welcome the best and brightest talent and organisations from around the world, including the US. While the Government has not finalised its future approach to our relations with the EU, the Government's position is clear, we want the best deal for trade in UK goods and services, including our world leading financial services industry.”
City bosses have expressed widespread concern that lack of access to the single market would severely damage the financial services industry. Many have expressed particular concern about the potential loss of “passporting” rights, which allow financial firms to trade unhindered across the 27 member states.
Yesterday, a City lobby group issued a report warning that a “hard Brexit”, where access to the single market is lost, would cost the industry £40 billion and result in the loss of up to 70,000 jobs.
The sector accounts for 12 per cent of UK economic output and 1.1 million jobs, but Prime Minister Theresa May said on Wednesday that the industry would receive no “special treatment” in Brexit negotiations with Brussels.
What experts have said about Brexit
What experts have said about Brexit
1/11 Chancellor of the Exchequer Philip Hammond
The Chancellor claims London can still be a world financial hub despite Brexit “One of Britain’s great strengths is the ability to offer and aggregate all of the services the global financial services industry needs” “This has not changed as a result of the EU referendum and I will do everything I can to ensure the City of London retains its position as the world’s leading international financial centre.”
2/11 Yanis Varoufakis
Greece's former finance minister compared the UK relations with the EU bloc with a well-known song by the Eagles: “You can check out any time you like, as the Hotel California song says, but you can't really leave. The proof is Theresa May has not even dared to trigger Article 50. It's like Harrison Ford going into Indiana Jones' castle and the path behind him fragmenting. You can get in, but getting out is not at all clear”
3/11 Michael O’Leary
Ryanair boss says UK will be ‘screwed’ by EU in Brexit trade deals: “I have no faith in the politicians in London going on about how ‘the world will want to trade with us’. The world will want to screw you – that's what happens in trade talks,” he said. “They have no interest in giving the UK a deal on trade”
4/11 Tim Martin
JD Wetherspoon's chairman has said claims that the UK would see serious economic consequences from a Brexit vote were "lurid" and wrong: “We were told it would be Armageddon from the OECD, from the IMF, David Cameron, the chancellor and President Obama who were predicting locusts in the fields and tidal waves in the North Sea"
5/11 Mark Carney
Governor of Bank of England is 'serene' about Bank of England's Brexit stance: “I am absolutely serene about the … judgments made both by the MPC and the FPC”
6/11 Christine Lagarde
IMF chief urges quick Brexit to reduce economic uncertainty: “We want to see clarity sooner rather than later because we think that a lack of clarity feeds uncertainty, which itself undermines investment appetites and decision making”
7/11 Inga Beale
Lloyd’s chief executive says Brexit is a major issue: "Clearly the UK's referendum on its EU membership is a major issue for us to deal with and we are now focusing our attention on having in place the plans that will ensure Lloyd's continues trading across Europe”
8/11 Colm Kelleher
President of US bank Morgan Stanley says City of London ‘will suffer’ as result of the EU referendum: “I do believe, and I said prior to the referendum, that the City of London will suffer as result of Brexit. The issue is how much”
9/11 Richard Branson
Virgin founder believes we've lost a THIRD of our value because of Brexit and cancelled a deal worth 3,000 jobs: We're not any worse than anybody else, but I suspect we've lost a third of our value which is dreadful for people in the workplace.' He continued: "We were about to do a very big deal, we cancelled that deal, that would have involved 3,000 jobs, and that’s happening all over the country"
10/11 Barack Obama
US President believes Britain was wrong to vote to leave the EU: "It is absolutely true that I believed pre-Brexit vote and continue to believe post-Brexit vote that the world benefited enormously from the United Kingdom's participation in the EU. We are fully supportive of a process that is as little disruptive as possible so that people around the world can continue to benefit from economic growth"
11/11 Kristin Forbes
American economist and an external member of the Monetary Policy Committee of the Bank of England argues that the economy had been “less stormy than many expected” following the shock referendum result: “For now…the economy is experiencing some chop, but no tsunami. The adverse winds could quickly pick up – and merit a stronger policy response. But recently they have shifted to a more favourable direction”
Hopes of a “soft Brexit”, where the UK maintains access to the single market but implements curbs on immigration, appeared to be severely weakened after German chancellor, Angela Merkel, said that freedom of movement and free access to trade were “inextricably linked”.
“We only say in very general terms that full access to the single market is inextricably linked with acceptance of the four freedoms,” including freedom of movement, Merkel said.
Granting exceptions on full access would “throw into question” the entire EU system and “lead to an extremely difficult situation."Reuse content