Theresa May says the UK will ditch passporting because it makes the City a “rule-taker”
Theresa May has said that the UK will ditch passporting after Brexit because it makes the City of London a “rule-taker”.
Speaking on the Andrew Marr show, she said a new trade deal with the EU will go further than the bloc’s agreement with Canada, but that the UK must leave the Single Market.
Read more: Jacob Rees Mogg tells Brexiteers: “Now is not the time to nitpick”
She said there were several trade deals which included a commitment to financial services, citing the trade deal the US and the EU were previously trying to agree.
“Financial services are referenced in, for example, the deal with Canada,” she said. “Yes, we want to go further, yes, but that’s a recognition of the very important role that the City of London plays, not just for the UK, but actually for the rest of the European Union.
“If you look at the significant sums of money businesses in the EU27, in those other countries, actually raise through the City of London, it matters to them as well. But if we were to accept passporting, we’d just be a rule-taker, we’d just have to abide by the rules that were being set elsewhere, and given the importance of financial stability, of ensuring the City of London, we can’t just take the same rules without any say in them.”
Read more: City welcomes Theresa May’s “honest” Brexit speech – and so does Barnier
May gave a key speech on Brexit on Friday, and admitted the UK will lose some access to EU markets as a consequence of Brexit.
The City welcomed May’s speech, saying that she was right to seek a bespoke deal with the European Union. Nicky Morgan, chair of the Treasury select committee, welcomed May’s “realism” and willingness to compromise.
I welcome PM @theresa_may speech. Clarity about #UK leaving Single Market and Customs Union & recognition of trade-offs will inform #EUCO guidelines re: future FTA.— Michel Barnier (@MichelBarnier) March 2, 2018