How to deal with the Brexit bonuses

Monthly real gross domestic product (GDP) is estimated to have grown by 0.2% in April 2023, after a fall of 0.3% in March 2023.

Looking at the broader picture, GDP grew by 0.1% in the three months to April 2023.

The City of London Corporation has exploded the myths that Brexit has been bad for the financial services industry. Instead the opposite is true.

Mr Hayward was speaking to the BBC's Adam Fleming for a new series, Brexit: A guide for the perplexed which is attempting to explain the impact of leaving the EU in "an accessible and clear way".

Sources close to Mr Hayward from the City of London Corporation have revealed that the actual facts paint a very different picture to the negative claims by Remainers.



Underlining its massive value too Britain still, the most recent year for which data is available, the industry generated around £278billion in economic output, £100bn in taxes, £128billion in exports, and nearly £2billion in foreign direct investment for the UK economy.



The sector employs an estimated 2.3 million people, two thirds of whom are based outside of London. In 2021 there were 587,000 workers in the City of London, or 1 in every 54 British workers.



On the impact of Brexit, the predictions of gloom have failed to materialise.

Mr Hayward was able to report that "London remains resilient and the engine room of the UK economy.



"The capital’s fundamental strengths remain and our offer to global investors continues to go from strength to strength."



According to EY’s latest Attractiveness Survey for Financial Services reported that the UK continues to be Europe’s leading destination for foreign direct investment despite claims that the industry would move to Paris or Frankfurt.



An example Hayeward cited of the UK's continued pull post Brexit was WE Soda - the world’s largest producer of natural soda ash - making its debut on the London Stock Exchange. The initial public shares offer is expected to raise £645 million.



Added to that he pointed out that last week Canada’s largest asset managers, Alberta Investment Management Company, announced plans to more than double its headcount in London and invest billions into the UK as they hailed London as more of a gateway to Asia and Europe than New York.



Similar recent moves from other large global investors including $102billion Australian superannuation fund Aware Super.

Addressing claims that thousands jobs would be lost to the sector in the UK, Mr Hayward also exploded the myth.



While 7,000 jobs left because of Brexit, "many more thousands of jobs have been created as EU banks have shifted some of their operations to the City" to continue to operate in the UK market.



This has been boosted because the UK "is fast becoming a world leader in fintech and green finance."



Major firms like Blackstone, Rockefeller Capital, T. Rowe Price, PGIM, the Managed Funds Association, and the Milken Institute have all increased their London profiles over the last few months.



As Mr Hayward noted: "London’s position at the crossroads of Europe’s biggest financial and tech sectors make it one of the globe’s top hubs for innovation."

And going forward Hayward noted that the Chancellor Jeremy Hunt's Edinburgh reforms "will boost UK growth and competitiveness."



He added that the UK's draft memorandum of understanding with the EU to open dialogue on financial services has also resolved many of the post-Brexit issues.



In a speech earlier this week, Mr Hayward said he was confident that Britain will become even stronger in this vital sector.



He said: "There has never been a bigger opportunity to build on our UK-wide strengths and to go even further and redefine British business.



"We have seen this ambition from Government, especially in the financial and professional services sector – and their Edinburgh Reforms and the Financial Services and Markets Bill are welcome."