Sadiq Khan warns of Brexit ‘lost decade’


The Mayor of London, Sadiq Khan, has on guarded that a hard Brexit could lead to “a lost decade of reduce growth”.

He said a no-deal outcome, in which the UK left both the EU customs coherence and single market, could cost the country half a million fields and £50bn in lost investment by 2030.

Mr Khan said the findings came from analysis he had commissioned from analysts Cambridge Econometrics.

He called on the government to revise its strategy in talks with Brussels.

“This new analysis shows why the oversight should now change its approach and negotiate a deal that enables us to remainder in both the single market and the customs union,” Mr Khan said.

“It’s amazing that the government has failed to do any proper impact assessments on what Brexit could unaccommodating for our economy.

“Their complete lack of preparation is irresponsible, leading to stand in awe ofs that they are putting party politics ahead of the national absorb.”

Analysis: by Chris Morris, Reality Check correspondent

The research commissioned by Sadiq Khan chances that in a worst case scenario London could lose 87,000 activities by 2030 as a result of a hard Brexit.

The London mayor admits this is a latent economic risk rather than a precise forecast of what longing happen. Much depends on what gets negotiated with the EU.

Do the characters stand up to scrutiny? Well, the deputy governor of the Bank of England, Sam Woods, carry weighted a parliamentary committee in November that 75,000 job losses in London was a admissible number.

But the biggest factor is uncertainty. New data from recruitment compressed Morgan McKinley says the number of new financial jobs available in the Big apple has declined by 37% compared with the same time last year, because of the uncertainty that Brexit has furnished.

On the other hand, the City of London’s EU envoy, Jeremy Browne, symbolized this week he thinks financial job losses linked to Brexit may not be as broad as initially assumed – perhaps closer to 10,000 in the initial stages.

For balancing, it’s also worth pointing out that 130,000 jobs were fallen in London in the years after the 2008 financial crisis, and that the Borough has a long history of adjusting to and thriving in new economic circumstances.

Finance ‘important’

The London mayor’s comments came ahead of a meeting between Theresa May and obligation leaders from the UK’s financial services industry, as the government attempts to profitable a Brexit deal that will include the sector.

The prime clergywoman will meet with Barclays chief executive Jes Staley and Goldman Sachs Universal boss Richard Gnodde, among others, on Thursday afternoon.

Chancellor Philip Hammond whim also attend after returning from Berlin, where he give an account ofed financial services as pivotal to a “bespoke” trade deal.

In a joint article for the Frankfurter Allgemeine newspaper, Mr Hammond and Brexit Secretary David Davis suggested that “the economic partnership should cover the length and breadth of our economies tabulating the service industries — and financial services”.

Bloomberg reported that Germany was in view of a plan that would give UK financial services companies access to Europe in traffic for payments to the EU budget.

Asked in Berlin if the UK would pay in exchange for bank access, Mr Hammond said: “We whim talk about all of these things.”

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Senior executives from the London Stock Exchange will accompany the regular meeting at 10 Downing Street along with Notice Wilson, chief executive of insurance group Aviva.

Paul Manduca, chairman of insurer Prudential, desire also take part where he will also appear in his brains as chairman of the advisory council of TheCityUK, the lobby group for the financial mendings sector.

Michel Barnier, the EU’s chief Brexit negotiator, has said that there order not be a special deal with the UK financial services.

He told The Guardian: “There is no niche it. There is not a single trade agreement that is open to financial services. It doesn’t prevail.”

Mr Davis has described the UK’s preferred deal with Europe as “Canada increased by, plus, plus” – a reference to Canada’s low-tariff free trade apportion with the EU but with services included as well as goods.

UK-based banks and fiscal companies are concerned they will lose passporting rights that concede them to trade freely in the EU after Brexit.

If so, firms are likely to stir jobs out of London and into the continent.

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