MQT Brexit answers

Brexit [1]

Question No: 2016/4361

Andrew Dismore

You told the Confederation of British Industry (CBI) the government is “lurching towards a hard Brexit” that would be “deeply irresponsible”, cause “financial harm” and that the “consequences could be disastrous”. What are those consequences and what are you doing to ameliorate them?

Written response from the Mayor

A ‘hard Brexit’, specifically falling back to WTO rules for trade with the EU, could significantly increase the cost and complexity of UK businesses wishing to import from and export to the single market.


Heavily regulated sectors, such as Financial Services, could face restrictions on the types of products they could trade with EU countries.


International businesses that have chosen London as their European base may relocate partly or entirely to the continent in order to maintain access to the single market.


I am in discussion with Government to ensure that they are aware of the risks to London’s economy, and the UK economy as a whole, if they do not strike a deal with Europe that maximises our access to the single market.




Brexit [2]

Question No: 2016/4362

Andrew Dismore

According to the Bank of England’s deputy governor for financial stability, Jon Cunliffe, the pound’s volatility will likely continue in the coming months,  and  sterling’s fall  reached   a 168-year low. What are the consequences of this volatility for London?

Written response from the Mayor

The depreciation of Sterling will likely have a number of impacts on London. In its November Inflation Report, the Bank of England observed that the depreciation in Sterling since its November 2015 peak ‘will affect the prices of UK imports and exports, which should support net trade through two key channels — reducing domestic demand for imported goods and services and supporting foreign demand for UK exports’.


This may support an increase in London’s trade; however, the rise in inflation that Sterling’s fall is likely to bring may well reduce real wages and so impact on consumption.


We are leaving in uncertain times post EU referendum and, as a result, the net impact on London is unclear.




Brexit [3]

Question No: 2016/4363

Andrew Dismore

The LCCI’s recent report on Brexit makes a series of recommendations to both Government and City Hall.   These include not neglecting the domestic agenda, particularly the need for strategic infrastructure investment and more devolution.  What is your response to their recommendations?

Written response from the Mayor

I welcome LCCI’s report. It identifies business support for key infrastructure projects, such as Crossrail 2 and housing, which will be vital to maintaining London’s competitiveness, in light of the vote to leave the EU.


A majority of business leaders surveyed also support devolution of further tax and spending powers to London government before the start of formal talks to leave the EU.


I agree, and these were important reasons for re-convening the London Finance Commission.


The Commission will report in early 2016 with recommendations for greater devolution of both taxation and control of public expenditure to promote jobs, growth and greater equality.




Brexit [4]

Question No: 2016/4364

Andrew Dismore

Has the government accepted your argument, for London to have a place at the Brexit negotiating table?

Written response from the Mayor

I have agreed to hold monthly face-to-face meetings with the Secretary of State for Exiting the European Union, David Davis, in the run-up to Article 50 being triggered, and regularly afterwards.


I will also feed in my views and analysis to the joint ministerial committee that will consider Brexit issues alongside the devolved administrations of Scotland, Wales and Northern Ireland.




Brexit [5]

Question No: 2016/4365

Andrew Dismore

What discussions have you had with the Scottish Government, Northern Ireland Executive and Welsh Executive over Brexit, and with what outcome?

Written response from the Mayor

I have had discussions with the First Minister for Scotland, Nicola Sturgeon, exploring London’s and Scotland’s perspectives on Brexit related matters.




Brexit [6]

Question No: 2016/4366

Andrew Dismore

Do you agree with the Creative Industries Federation, that the success of London’s creative industries is at risk due to possible post-Brexit restrictions on free movement?

Written response from the Mayor



Current membership of the EU provides access to a rich supply of creative talent which has contributed towards London’s reputation as the world’s leading creative capital. A third of jobs London’s creative industries are filled by international workers so access to talent is hugely important for London’s creative businesses, including those looking for a base in the capital.


The UK’s creative economy is worth £84 billion with London’s creative industries responsible for almost half of this economic growth. The capital’s creative economy generates £35 billion per year and account for 1 in 6 jobs.


Once the UK leaves the EU, the immigration system will need to ensure continued access to EU talent to maintain London’s leading position and the success of a growing UK industry.