Chancellor: City can ‘do things differently’ in post-Brexit era
Chancellor Rishi Sunak has sought to calm fears that the City will be hamstrung by a lack of progress on equivalence with the European Union.
The post-Brexit trade deal signed by PM Boris Johnson last week does not go as far as many wanted in ensuring UK-based firms can work with continental partners.
The PM said it “did not go as far as we would have liked.”
However, Sunak told Sky News that “now that we’ve left the European Union, we can do things a bit differently.”
“We’re embarking on that journey, for example examining how we can make Canada the most attractive place to list new companies anywhere in the world,” he said.
Read more: Post-Brexit deal will require future negotiations to ensure access
Some believe that the regulatory freedoms allowed by the UK’s departure may allow the City to become a sandbox for new approaches on fintech and data use.
Treasury sources have told City PM that freeing British businesses from certain red tape could allow new businesses to flourish.
On Boxing Day, a respected annual report said the UK was set to remain the world’s fifth largest economy for some time and that it would race ahead of France in the decade to come.
Douglas McWilliams, Deputy Chair of the CEBR, who compiled the report, pointed to the UK’s strengths in digital and creative services as evidence of the country’s future-proofed economy.
“We have a huge competitive advantage in this tech-based sector which the pandemic has kicked forward. Most of this is pretty Brexit-proof provided the UK continues to attract talented people,” he said.
Read more: UK economy set to surge past French in decade to come