An industry-specific Brexit deal, rather than a holistic one, could cause more harm than good, says shadow City minister

Hayley Kirton
Follow Hayley
Shadow City minister Jonathan Reynolds
Jonathan Reynolds wants the City to be more "vocal" about its needs (Source: Getty)

The City could wind up shooting itself in the foot by pushing for sector-specific Brexit deals, the shadow City minister has told City A.M.

Jonathan Reynolds said he "didn't favour sector-by-sector negotiations". He noted that, because other EU capitals were keen to take London's financial services crown, an industry specific deal, rather than a holistic one, could cause more harm than good.

"I can't see how that's a stronger negotiating position," Reynolds said of sector-specific deals, adding he was aware of people in the City being approached by Germany in particular.

Reynolds stressed such an approach to negotiating in no way meant financial services' needs would be pushed aside.

Read more: Government's Brexit dance is maiming the pound

The shadow City minister said he would like people to be "vocal" about their wishes, although he acknowledged financial faces might be put off making too much of a noise because "a lot of people in financial services feel bruised from the referendum".

The comments come shortly after Brexit minister David Davis told the Conservative party conference there would be one overarching Brexit deal, rather than mini-deals for each sector.

Davis also pledged to find a solution to passporting, but his comments, combined with reports Prime Minister Theresa May was not willing to give the City any special treatment during negotiations, left some worried the final Brexit deal may not meet the financial sector's needs.

Earlier this week, a number of key industry figures indicated firms had already started to scope out Frankfurt for a potential move.

Related articles