UK minister plays down ‘chaos’ theory for the City

London

UK Treasury minister John Glen played down the risks facing London’s financial district after Brexit, seeking to reassure investors and traders worried about the UK leaving the European Union without a deal.

“There will be no chaos in the city of London no matter how the final deal on Brexit works,” Glen said, citing the UK’s “world-class” Financial Conduct Authority, the nation’s leadership status in fintech and the government’s pledge to keep corporation tax low. “I wouldn’t be so sure there is that much uncertainty.”

Prime Minister Theresa May’s government has stepped up planning for a no-deal Brexit with little progress in negotiations with the EU, which has rejected key parts of her plan. The UK has long since scaled back its ambition for British banks to retain their so-called passporting access to the EU’s single market, and is instead pushing a form of “equivalence” on financial services.

Meanwhile, the European Commission is exploring what emergency measures it may need to take without the UK’s cooperation. While that is likely to include continuation of vital services, such as financial services and trade in medicine and flights, the individual industries haven’t been confirmed.

— Bloomberg