Research published by the Mayor of London, Sadiq Khan claims that Brexit will potentially cost London’s economy £9.5bn a year – with the capital’s service sectors bearing the brunt of the downturn.
The Mayor of London, Sadiq Khan, said: “London is a world leader in finance, law, professional services, the creative industries and technology.
“However, whichever way you slice it, the Government’s Brexit trade deal was the equivalent of a ‘no deal’ Brexit for financial and professional services, and our businesses now face a costly red tape mountain caused by the UK having to trade with the EU as a ‘third country’.
The Mayor has published an analysis of the Government’s Brexit trade deal from a London perspective by the Centre for Economics and Business Research (CEBR).
The analysis sets out the initial effects on London’s economy of the reduction in trade with the EU as a result of the Brexit agreement and shows a potentialannual loss of £9.5bn of Gross Domestic Product (GDP). London’s financial and professional services sector alone is set to account for more than £2bn in lost GDP per year.
However, the findings also make clear the economic costs could be even higher if the Government fails to reach separate agreements with the EU to close the gaps in the trade deal for the UK’s financial and professional services firms. You can read the full report here.
The Mayor continued: “For the good of London and the UK’s economy, the Government should have been focussed on getting a deal that protected these industries – and this report reveals the staggering losses that London could face as a result of the trade agreement.
“These losses could be even higher if the Government fails to secure additional agreements with the EU on hugely important areas of regulatory equivalence.
“The service sector is absolutely crucial to serving the wider economy – contributing billions in tax revenues to the Treasury every year, which goes towards funding public services in every village, town and city across the country.
“That’s why it is vital that the Government quickly closes the gaps in the trade deal for key sectors of our economy.”
(Source: Mayor of London)