UK’s ‘crown’ in financial services sector starting to slip, Tory MP claims

Anthony Browne, a member of the Treasury Select Committee, made the remark in the Commons as he called for the UK to have a “clear strategic objective” to be the world’s leading financial centre.

The MP for South Cambridgeshire said: “The regular surveys of international financial centres shows that our crown is starting to slip. London is now usually ranked second to New York.”

He added: “Our global market share in some sectors such as insurance and bank lending is trending down. That is a cause for concern, but not alarm. We can turn the tide.”

Mr Browne said the UK’s financial services sector contributes £10 in every £100 of the UK’s economic output, is “by far” the country’s biggest export industry, and that the UK is the biggest net exporter of financial services in the world.

He said the industry is at a “major turning point” and at the “beginning of a new era” owing to Brexit and post-financial crisis reforms coming to an end.

During the backbench debate on the contribution of the sector to he UK economy, the MP called for a “clear strategic objective” for the UK to be the world’s leading financial services centre.

Conservative former minister Sir Robert Neill told MPs he hopes the UK develops “a more constructive relationship” with the EU when it comes to the sector.

The MP for Bromley and Chislehurst said it is regrettable the EU is taking a “disruptive” approach to the United Kingdom’s application to the Lugano Convention, which governs cross-border civil and commercial legal disputes.

And Labour former minister Angela Eagle said Brexit has created “opportunity” but “also threats” for the sector.

Labour shadow Treasury minister Tulip Siddiq said the party does not want to reopen negotiations with the EU, but if in government it would be focusing on making Brexit work for the City of London.

Ms Siddiq said: “Regulatory equivalence for the financial sector should have been a priority in talks with the EU but they failed to achieve this and we feel the sector is in state of uncertainty now.”

Treasury minister John Glen said it is important “that we don’t rest on our laurels” and said “there are obviously strong competitive pressures in the industry”.

He said it is the Government vision to deliver an “open, green and technologically advanced financial services sector, a sector that is globally competitive and acts in the interests of communities and citizens across the UK”.

Mr Glen said: “We’ve now left that EU institutional framework and where it makes sense we are taking advantage of those new freedoms to refresh the UK’s position as the world’s preeminent financial sector.

“We are not deregulating, but we are looking at those international relationships. We’ve set out a clear, ambitious programme of work to broaden and deepen those relationships.”

He added: “I recognise the uncertainty with the EU relationship, I recognise that we have cooperated fully, and it will be for the EU to determine what sort of dynamic they wish to have.”