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Hammond pledges City will remain capital of finance after Brexit

The Chancellor has called for new financial partnerships to open up markets beyond the EU.


A view of the City of London skyline, seen from City Hall (Victoria Jones/PA)

A view of the City of London skyline, seen from City Hall (Victoria Jones/PA)

A view of the City of London skyline, seen from City Hall (Victoria Jones/PA)

Chancellor Philip Hammond is to set out the Government’s blueprint for maintaining London’s position as a “global capital of finance” after Brexit through opening up access to markets beyond the EU.

In his annual Mansion House speech to the City, Mr Hammond is expected to spell out how the Government will seek a series of new “global financial partnerships” to open up cross-border financial services.

At the same time he will reiterate his appeal to Brussels to come to the table to discuss a future relationship on financial services, something the EU side has so far refused.

The Chancellor will emphasise that financial services will remain a “foundation of the UK’s economic success” outside the EU, which will in turn require continued openness to the global economy.

“Global Britain is not just a strategy for Britain’s economic future, it’s a statement about what kind of people we are and about the economy and the society we want to be,” he is expected to say.

“Connectivity was always at the heart of London’s success. And to succeed in the future, we must remain connected to the world, including the important emerging markets.

“So while some question the benefits of openness, being open to the world, and being a global capital of finance, will continue to be the foundation of the UK’s economic success.”

He will say the new strategy will bring together governments, regulators, and industry to build a system to support firms’ access to international financial markets, while reducing business costs.

“Our vision is for a set of new partnerships combining new tools, like free trade agreements, and existing ones, like our financial dialogues, looking across sectors of the industry and positioning the UK as the most global financial services market in the world,” he is expected to say.

Mr Hammond will also reaffirm the his commitment to the Government’s fiscal targets, clearing the deficit by the mid-2020s, despite Theresa May’s £20 billion funding package for the NHS announced at the weekend.

“We are getting debt down, while investing in Britain’s infrastructure, supporting our vital public services, and helping hard working families, across the United Kingdom,” he will say.

“So, as the Prime Minister said, across the nation taxpayers will have to contribute a bit more in a fair and balanced way to support the NHS we all use.”

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