MQT Economy answers July 19
Question No: 2019/12156
Andrew Dismore
In the EU Exit Working Group in February, it was stated that the LEAP provides the Government with business intelligence relating to Brexit on a weekly basis. Are the Government taking your intelligence and recommendations on board?
Answer for LEAP and Brexit
The Mayor
Last updated: 25 June, 2019
Officers are drafting a response
LEAP and Brexit
The Mayor
Last updated: 22 July, 2019
We currently share business intelligence, gathered through the activity of the London Growth Hub, with Government on a fortnightly basis. We are advised by officials that this information is used to feed into Ministerial briefings but we are unaware of any specific actions that have resulted from this intelligence.
Question No: 2019/12157
Andrew Dismore
The Home Affairs Select Committee published a report which highlighted their serious concerns about the design of the settlement scheme for EU citizens. Can you update me on the discussions that you have had with Government on this matter?
Answer for EU settlement scheme
The Mayor
Last updated: 25 June, 2019
Officers are drafting a response
EU settlement scheme
The Mayor
Last updated: 22 July, 2019
I share the Committee’s concerns about the Government’s settlement scheme for EU citizens and I have made this clear in my representations to Home Office Ministers. I want to make sure that any future process is as simple and stress-free as possible after what has been a particularly uncertain and daunting period for EU Londoners, especially the most vulnerable. I will continue to make the case to whoever the next Prime Minister, Home Secretary and Ministers are.
After successfully advocating for Government to waive the fee for Settled Status applications, I wrote to the Home Secretary in April calling on him to respond urgently to various issues with the EU Settlement Scheme that continued to create barriers for people to apply. My letter was strongly informed by my #LondonIsOpen bus out-reach weekend between 29 March – 1 April to provide free advice and guidance to EU citizens across the capital. The message was clear and worrying – there is a serious lack of awareness about the scheme amongst EU citizens and their families. This must be rectified by the Home Office immediately. If EU Londoners don’t register in time they will be unable to work, rent a home or open a bank account, it is unacceptable that the level of awareness is so low. The Government has already failed the Windrush generation and, worryingly, is on the verge of failing EU citizens who live here too.
In addition, EU citizens told me there is a distinct lack of digital support for the most vulnerable applicants when completing their applications and struggle to access overstretched legal advice and support services. The Government’s £9m grant funding is welcome, but clearly doesn’t go far enough to address the scale of the challenge facing the advice and support sector after a decade of cuts to meet this unprecedented level of demand. I communicated this to the Home Secretary in strong terms. I have yet to receive a response to this letter.
For our part, we will continue to update information on our online hub for EU citizens, fund outreach through my microgrant programme, and promote this work through various teams and channels at City Hall to keep EU Londoners up-to-date. Let me be clear, the one million European Londoners are part of the fabric of this city – working hard, paying taxes and playing a major role in civic and cultural life. They will always be welcome here.
Question No: 2019/12158
Andrew Dismore
Have you received any further information from the Government about London’s share of the UK Shared Prosperity Fund, which is due to replace EU funding after Brexit?
Answer for Replacement of EU funds
The Mayor
Last updated: 25 June, 2019
Officers are drafting a response
Replacement of EU funds
The Mayor
Last updated: 22 July, 2019
April’s parliamentary Housing, Communities and Local Government Select Committee report recommendation relating to the UK Shared Prosperity Fund echoed my own concerns about the Fund’s purpose and its delayed implementation. The recommendation suggested:
‘The Government must .. publish the promised consultation… within two weeks from 12 April. Funding levels.. must match or exceed the equivalent levels of EU funding which is currently provided to local government. This must be allocated .. taking account of what individual areas currently receive from EU structural funds as well as what they would have been entitled to in the next EU funding period if the UK had remained a member.’
In its response to the report published on 4 June, the government reconfirmed its intention to consult on the Fund, without providing timescales. It stated that final decisions would be taken following the spending review.
Foreign Direct Investment in London
Question No: 2019/12200
Andrew Dismore
According to the Guardian, (https://www.theguardian.com/business/2019/jun/04/retailers-warn-of-fresh-wave-of-job-losses-and-store-closures)
“A survey by the consultancy and auditing firm EY found that the UK retained its position as the No 1 European destination for foreign direct investment (FDI) in 2018, but the number of projects was down by 13% on the previous year. Fifteen per cent of global investors have put investment plans in the UK on hold owing to Brexit, the firm said, but only 6% planned to move assets out of the UK in the future. Sectors exposed to Brexit experienced major declines in FDI in 2018, with manufacturing down by 35%, headquarters down 49% and R&D down 17%.”
How do you think this will affect London in particular, and do you agree that this is yet more evidence that a hard Brexit will do calamitous damage to our economy?
Answer for Foreign Direct Investment in London
The Mayor
Last updated: 25 June, 2019
Officers are drafting a response
Foreign Direct Investment in London
The Mayor
Last updated: 22 July, 2019
London remains the number one destination for Foreign Direct Investment (FDI) globally and in 2018 it attracted around 1 in 10 of all FDI projects into Europe (FDI Monitor, 2018).
The fundamental strengths of London such as favourable time zones, world class talent and access to global markets is continuing to attract businesses and entrepreneurs from all over the world.
However, whilst London’s overall international reputation is strong, there is no doubt that the Government’s approach to Brexit has weakened appetite for investment. This means we need to work even harder to continue to sell London and we must make what preparations we can to avert the very negative outcomes of a no deal Brexit.
