In a letter published in the Financial Times, our economic spokesperson, Baroness Susan Kramer argues that it would be “economic vandalism” for the government to fail to financial services sector during the Brexit process:
The financial services industry generates over £65bn in taxes each year, over one-tenth of total government revenue. The loss of full access to the single market in financial services would not just hurt those in the banking industry. It would mean schools, hospitals and services across the country going without funding. We all want to rebalance our economy to be less reliant on financial services, but failing to support this vital sector during Brexit would be an act of economic vandalism.
The prime minister should think very carefully before sacrificing the City on the altar of a hard Brexit.
You can read the full letter here.
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3 Comments
Does the Lib Dem economics spokesperson believe we will lose £65 billion in taxes per year when we leave the single market?
If so I suggest you start looking for an economic spokesperson who has a better grasp of economics.
John Peters – come on, its obvious that Susan Kramer is making a point about the extent to which the taxes paid by financial services sector fund our public services. A very valid point. We can’t know the extent to which that sector’s UK presence will decline without passporting – predictions vary, but I’ve yet to see one that predicts no loss to elsewhere. That’s something even those who disparage our financial services sector should worry about.
The worse case scenario I read recently was the City would lose £20 billion in revenue and the Government £5 billion in tax.