2x1 financial services sector

EU exit and financial services

Date published: 
17 November 2016

The London Assembly Economy Committee has published a short report on the impact of Brexit on London’s financial and professional services sector.

The report sets out the key asks for London, in order to ensure the continued success of this vital part of the UK economy.

  • Financial services create roughly a fifth of the total value created in London’s economy.
  • In 2014-15, HMRC calculated the sector contributed seven per cent of the £291 billion collected from taxes on earning and onshore corporation tax.
  • The sector employs 360,000 people and London is home to over 250 foreign banks.
  • The financial services industry relies heavily on financial passport rights with nearly 5,500 UK-registered companies using financial passports to access the EU market.

Observations

  • Any new national immigration system should not automatically exclude people without concrete job offers – skills should be valued just as highly, as a skilled-based immigration system will be more successful and beneficial to London and the UK in the long term.
  • London could develop its own visa system to allow skilled workers to live and work in the capital. Variations of regional work permits have been used in other countries, like China and Canada.
  • The Mayor should continue to be a strong advocate for protecting the City, given its strategic importance as a high value asset for the whole UK economy. He should also explore the development of a skills strategy for the growing fintech sector.

Download the London Assembly Economy Committee short report into EU exit and financial services below.

Follow @LondonAssembly and tweet about the report using #AssemblyEconomy and #EUExit.

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