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There’s more to the City than “passporting”

First published:, 25/09/2016

It is too narrow a lens through which to view the advantages enjoyed by our financial services companies

It is not surprising that the City is a central issue in the Brexit discussion. It’s a pretty important part of the economy. Financial services in general account for about 12 per cent of GDP, run a £72 billion balance of payments surplus and raise about £66 billion in tax revenues. Inside the City, there is a handful of well-known Brexit supporters amid a predominantly pro-EU, pro-Single Market consensus. Outside it, opinion is divided also between those who think it important to preserve the operating environment for the City, and those don’t mind at all if the industry shrinks and becomes less important. The most surprising view though is the idea that Brexit is an opportunity for the UK financial services industry to thrive, regardless. This was the main message of a piece in The Times last week by Ed Conway, who comments on economics and finance for Sky News, under the heading “Resilient City will take Brexit in its stride.” This falls under the same category of headings as “Global warming good for summer holidays.” So what’s this all about?

No one knows where the Brexit referendum result is leading us, least of all Her Majesty’s Government, which has yet to articulate a strategy, let alone a workable one. There is no precedent for leaving the EU, no template, and no clarity about how to restructure an array of complex political and economic relationships, including those relating to the City…..Read more: