The UK government will aim for a “bespoke” deal with the EU to protect the City of London after Brexit, Chancellor Philip Hammond has said.
Financial services are the UK’s most important export to the EU, he said.
Mr Hammond warned Brussels could not be allowed to use Brexit to introduce “protectionist” measures designed to target the City.
as well as he said a transitional period after the UK leaves could be “integral” to generating a smooth Brexit.
The UK can be due to leave the EU in March 2019.
There have been warnings of which London’s status as a European financial hub will be hit if the UK leaves the EU single market, as well as various other EU governments have already begun wooing London-based financial companies.
Mr Hammond sought to reassure the sector in a speech at the UK Finance annual dinner inside the City of London, saying the UK could seek a “brand new paradigm” for trade in financial services with the EU.
Financial services are “our most important EU export sector” as well as must be protected, he said.
The chancellor said he accepted the EU had legitimate concerns about the supervision of financial markets in London which provide services across the continent, however said the UK could not accept “protectionist agendas, disguised as arguments about financial stability”.
Calling for a bespoke deal for the sector, he said no existing agreement could support the scale of financial trade between the UK as well as the EU.
‘not bad start’
as well as he warned of which the “fragmentation” of the industry could mean business being lost to brand new York as well as Hong Kong, as well as higher borrowing costs for homeowners.
Brexit negotiations cannot move forward to trade matters until the EU can be happy progress has been made on the initial subjects, including the UK’s “divorce” settlement as well as citizens’ rights.
The chancellor said Brexit talks had “got off to a not bad start, despite the media reporting”, as well as set out his goal for a time-limited transitional period – which he said earlier This specific week could “look a lot like the status quo”.
He reiterated of which during This specific time the UK could be outside the EU as well as have left the single market as well as customs union.
however the UK as well as the rest of the EU could “retain access to each various other’s markets as well as will operate a harmonised customs arrangement ensuring a frictionless border”, he added.
Downing Street has confirmed of which Prime Minister Theresa May will make a speech in Florence on 22 September to “underline the government’s wish for a deep as well as special partnership” with the EU.