London mayor Sadiq Khan said the UK capital may seek its own Brexit deal amid businesses’ persisting fears over the impending departure from the European Union.
Speaking to the Institute of Directors, Khan criticised ministers for seemingly not listening to business concerns. He warned that London may have to explore another way out if the government’s Brexit plans do not adopt a position that works for businesses in the capital.
“I will keep pushing the Government to recognise this vital need in their negotiating position – but it doesn’t look like they are listening,” Khan said.
“If the Government ignores the needs of business and pushes ahead with a new system that cuts off access to skilled workers then we will have no choice but to look at a London-specific solution,” he added.
Khan stressed that London needs to retain access to the workforce within the European Union to protect jobs, growth and tax revenues over the next decade.
In 2017, Khan said he will hold a summit with business leaders and other experts to come up with Brexit plans that would pressure ministers.
Meanwhile, insurance companies in London identified four Brexit priorities that will help the city maintain its position as the largest global centre for commercial and specialty risk.
The International Underwriting Association (IUA) said the UK and the EU should first make a Brexit agreement that will preserve passporting and branching arrangements and recognise the equivalence of regulatory regimes.
The government and the EU should also ensure that they will not create barriers that impede the use of English law contracts and standard London Market contractual forms in cross-European business.
Tax issues must also be addressed with an early indication of the future VAT regime for insurance companies operating in the UK, according to the IUA.
Lastly, the IUA urged regulators to prepare to deal with an “unprecedented increase” in licence applications from insurers planning to establish branches or subsidiaries in the UK and elsewhere in Europe.
“The London company market’s priorities for Brexit are quite clear. It is essential to maintain a level playing field so that insurers can operate across the continent without the need for local licences,” said IUA chief executive Dave Matcham.
“At the same time, the competitiveness of London as a global hub will be preserved by allowing European firms to easily maintain a presence here through branch offices,” he added.
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