Nicky Morgan Calls for Report

Nicky Morgan, newly elected chair of the Treasury Select Committee, has called for a report from the Bank of England on the City’s readiness for a hard Brexit. The Conservative MP is a prominent advocate of a soft Brexit, and her position on the committee will see her scrutinising the government’s economic policy as the country struggles with the financial consequences of leaving the EU.

“I have also asked Mr. Woods for his views on the desirability and design of a transitional arrangement with the EU, to provide more time to negotiate and prepare for a new UK-EU economic relationship. Getting these arrangements right will be crucial for ensuring that the City retains its pre-eminence as a global financial centre, and to protect the economy and jobs as the UK leaves the EU.”

Analysis by a consultancy firm last year estimated that a hard Brexit could cause up to 35,000 jobs to leave the UK across the financial services, however, losses could be much greater as a result of changes to the wider financial system. Morgan has said that her committee (which will not meet until the autumn) may want to consider the impact of Brexit on financial services within the UK.

The Bank of America and Barclays have already picked Dublin for office base post-Brexit, and Mitsubishi is reportedly planning a move to Amsterdam. The consequences of Brexit for Britain’s business and finance sectors are growing questions which are having to be considered going forward to ensure a successful result. What these consequences will be are becoming increasingly evident, and it will be the role of the government going forward to minimise damage, both in the short and long term.