Mark Garnier joins Philip Hammond in reassuring the City it’s still important in the Brexit negotiations
Mark Garnier, parliamentary under secretary of state for international trade, has today reiterated reassurances from other politicians that the financial services sector is important to government as it gears up for Brexit negotiations.
Garnier told the audience at a British Bankers' Association (BBA) conference that "government fully appreciates the implication" concepts such as a hard Brexit could have for the industry, adding: "Without banks, the economy, quite frankly, would seize up."
He noted he was keen to see some sort of transition period, which would extend key rights to firms long enough for them to get their house in order, and a workable alternative to passporting be included in the final Brexit deal.
Garnier stressed Brexit was not a "divorce" from the EU. "They are going to be our friends. They are going to be our allies. And, most importantly, they are going to be our trading partners," Garnier said.
Read more: BBA chief calls for clarity for banks on Brexit
Earlier this week, Morning Wire revealed that many across the City were becoming frustrated with the indifference government seemed to be demonstrating towards their Brexit needs. It is understood that many are worried government is increasingly leaning towards a so-called hard Brexit, which would likely involve the loss of passporting rights.
A report released by TheCityUK earlier this month revealed as many as 75,000 jobs, along with £38bn in revenue, could be lost if the Leave deal resulted in a hard Brexit.
However, while being grilled by the influential Treasury Committee yesterday, chancellor Philip Hammond insisted government did indeed recognise the important role the financial services sector played in the UK economy.
Read more: Why Brexit will force British banks to think on their feet
Also in his BBA keynote, Garnier mentioned Brexit should be treated as an opportunity, particularly in the sense that it gave government a chance to address some of the regulation the industry was presently operating under.
"Brexit provides an extraordinary opportunity for Great Britain and we do need to seize that," he said.
Garnier, who was himself in the Remain camp, added government was now "absolutely committed to delivering the will of the people".