Published: Sat, January 13, 2018
World | By Paul Elliott

Financial sector is priority for United Kingdom in Brexit negotiations

Financial sector is priority for United Kingdom in Brexit negotiations

Cambridge Econometrics, an economics consultancy, looked at five different Brexit scenarios, from the hardest to the softest form of Brexit, and broke down the economic impact on nine industries, from construction to finance.

The report models five possible scenarios for leaving the European Union, warning the worst option could result in a "lost decade" for the British economy.

New independent assessments of the potential impact of Brexit have revealed the extent of the possible economic risks - and human cost - at stake in the European Union withdrawal negotiations.

The analysis also shows that London's economy would suffer significantly less from Brexit than the rest of the UK.

"As expected, the more severe the type of Brexit, the greater the negative impact will be on London and the United Kingdom", the report stated.

The Labour mayor was a strong supporter of the remain campaign and has since vigorously argued for the United Kingdom to stay in the EU's single market and customs union, or for London to be granted its own deal, especially on maintaining rules on banking and financial services. It should help guide the government to the best outcome for London and the UK.

"The Prime Minister gave an overview of the UK's position and updated on Brexit negotiations -- including the UK's aim to agree an implementation period by the end of March", he added.

In case of a no-deal, the Brexit would lead to the introduction of tariffs and a possible crash in the value of the British Pound, which will lead to fewer companies being able to purchase imports.

"The results show that Brexit will not only reduce the size of the United Kingdom economy, compared to what may have happened if the United Kingdom remained in the Single Market and Customs Union, but also put it on a slower long-term growth trajectory".

Mr Khan said: "This independent analysis reveals the potential economic risks - and human costs - at stake in the negotiations".

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