Metropolis of London says COVID is masking Brexit hit to finance

Folks stroll via the Metropolis of London monetary district in London, Britain, September 13, 2021. REUTERS/Hannah McKay

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LONDON, Jan 5 (Reuters) – Getting forward in world finance after Brexit wants sustained British authorities impetus, the Metropolis of London’s coverage chief stated on Wednesday, including that COVID-19 could also be masking a few of the affect of leaving the EU.

Britain’s monetary sector misplaced most of its entry to the European Union, which had been its single largest export buyer, after finishing its exit from the bloc a yr in the past.

And whereas it has tailored easily to Brexit, the complete implications have been nonetheless working their method via, Catherine McGuinness, whose five-year time period as coverage chief for the ‘Sq. Mile’ monetary district ends in Might, advised Reuters.

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Some 7,400 finance jobs, far fewer than initially predicted, have moved from London to new EU banking hubs, however COVID-19 “could also be masking what’s actually happening”, McGuinness stated.

Strain to maneuver jobs to EU hubs eased final yr as a consequence of COVID lockdowns.

“We’re actually not at a brand new regular….We have to put Brexit behind us. What actually issues now’s sustaining our aggressive edge in future,” she added.

“It is not a given that individuals will wish to come to London.”

Amsterdam overtook London to turned Europe’s largest share buying and selling centre a yr in the past, whereas some derivatives enterprise left for New York.

Banks in London are voicing frustration on the value and time of working duplicate British and EU hubs, however they’re nonetheless dedicated to having operations within the capital, McGuinness stated.

The European Central Financial institution has resumed stress on banks in London’s monetary districts to adequately employees their new EU hubs after delays as a consequence of pandemic restrictions.

McGuinness welcomed the British finance ministry’s promise of a “new chapter” in monetary companies and its proposals to make the monetary sector extra globally engaging, with some adjustments resembling versatile itemizing guidelines already in place.

Extra must be accomplished to get on the “entrance foot” in world finance and benefit from Britain’s new scenario she stated, including that after a lot session, motion was wanted.


Britain’s finance ministry responded by saying it was delivering on its roadmap for holding the Metropolis of London on the prime desk by making it extra open, aggressive, technologically superior and sustainable.

“We are going to proceed to work at tempo, alongside the business and regulators, to drive ahead our reforms,” it stated.

McGuinness stated that relations with the EU have to be placed on a “new footing”, though a proposed cooperation discussion board for monetary watchdogs has but to be signed off by the bloc.

Brussels has stated it needs the spat between the EU and Britain over the Northern Eire protocol sorted out first earlier than it could actually start rebuilding belief in cross-Channel finance.

McGuinness has needed to grapple with injury from Brexit at a time when COVID-19 restrictions, lately renewed as a result of Omicron variant, have emptied its streets, placing in danger sandwich outlets, bars and different companies utilized by Metropolis employees.

“I’m actually hopeful we will get folks again to their places of work quickly as a result of for a few of these companies which have actually struggled to outlive during the last couple of years, this can be the ultimate straw,” she stated.

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Reporting by Huw Jones; Enhancing by Hugh Lawson and Alexander Smith

Our Requirements: The Thomson Reuters Belief Rules.