European Union deal a marginal cost to UK, Sadiq Khan's analysis finds

Lester Mason
January 13, 2018

"This underlines the importance of getting a good deal that allows London's financial and professional services the maximum two-way market access with the European Union member states that they need", City of London Corporation, Catherine McGuinness, said.

"This independent analysis of Brexit reveals the potential economic risks - and human costs - at stake in the negotiations", Khan said, following the publication of the data.

The Chancellor said it was not a "realistic proposition" for the United Kingdom to accept a post-Brexit trade deal that does not include services and that the European Union would be "crazy" to cut itself off from the City.

Commissioned by Mayor of London, Sadiq Khan, the analysis also suggests that the United Kingdom could receive £50bn less investment by 2030 and a "lost decade" of significantly lower growth.

"The outcomes after Brexit will depend on decisions which are yet to made".

Fears of an abrupt British exit from the bloc have grown as Prime Minister Theresa May struggles to make progress in talks with Brussels about a transition deal and the shape of a future trading relationship
European Union deal a marginal cost to UK, Sadiq Khan's analysis finds

Khan cited research from the Cambridge Econometrics consultancy which showed that in a no-deal scenario, the industry that fares the worst will be financial and professional services, with as many as 119,000 fewer jobs nationwide. "Anyone sticking it out into 2018 is in it for the long haul", said Hakan Enver, operations director at Morgan McKinley Financial Services.

Continued financial and regulatory co-operation within Europe after Brexit is essential if the continent is to "lead the world" in terms of enhancing global financial supervision. The EU has already proposed that clearing of euro-denominated derivatives, done mainly in London, could move to the euro zone without a comprehensive Brexit deal.

A spokesman for May said Britain will not pay for market access.

EU budget commissioner Guenther Oettinger told reporters in Brussels on Wednesday that any payments after transition were a matter for the negotiations but suggested "the United Kingdom could reflect upon" how Switzerland pays to participate in certain European projects.


Other reports by Iphone Fresh

Discuss This Article

FOLLOW OUR NEWSPAPER