Philip Hammond: We need a 'bespoke' deal for the City after Brexit

Posted On: 
14th September 2017

The Government is seeking to achieve a "bespoke" deal for the City of London after Brexit, Philip Hammond has said.

Philip Hammond making a speech at London's Mansion House in June
PA Images

In a speech at the UK Finance annual dinner, the Chancellor said it is his “priority” to ensure the UK remains the financial services centre of the world, as the country’s most important export to the EU.

He also pledged to stop Brussels introducing “protectionist” measures aimed at targeting the City.

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Elsewhere in the speech, Mr Hammond said a transition period “during which the UK and the EU 27 will retain access to each other’s markets, and operate a harmonised customs arrangement” will be “integral” to a smooth Brexit.

“It is my priority as Chancellor to ensure that the UK remains the financial services centre of the world. And the global hub of fintech. We have the timezone, the language, the legal system, the talent, the capital markets, and the tech centre to succeed,” he told City grandees during a speech at Mansion House last night.

There have been warnings many UK-based businesses could relocate their headquarters to other European financial centres following Brexit.

But Mr Hammond attempted to reassure attendees by telling them the City will seek a new “paradigm” as “no existing trade agreement, nor third-country access to the EU, supports the scale of reciprocal trade in financial services that exists between the UK and the EU”.

He added the Government will not allow the EU to have "protectionist agendas, disguised as arguments about financial stability".