John McDonnell MP, Shadow Chancellor, responding to today’s reports that the UK financial sector is to raise concerns with the Prime Minister on access to the single market, said:

“Today’s reports on the threat represented to Britain’s financial services industry and the employment it supports shows the real dangers presented to jobs and the economy from the Tories’ lack of preparation for Brexit. It is typical of the Tories to now be pulling together a backroom offer that defends financiers whilst failing to clarify how they will defend the workplace rights of working people. In July I set out five principles that must be respected during negotiations to leave the EU, which included protecting the access rights of UK financial services firms alongside freedom of trade, protecting workers’ rights, maintaining our role in the European Investment Bank and protecting the rights of EU citizens currently living and working in the UK and UK citizens in the EU.

“Labour has made clear in its five red lines for Brexit negotiations that it will not support a deal that significantly harms financial services’ market access to Europe, which can include passporting rights. However, the Brexit vote shows clearly that we cannot presume business as usual will continue. All sectors of the UK’s financial services industry will need to continue to demonstrate that they are prepared to make a fair contribution to national prosperity and that their activities produce genuine social value, rather than socially useless activities, to retain public support in any future deals on market access.

“The Government must bring forward without further delay its options for future financial services market access and make clear its preferred negotiating position before the damage caused by delay and confusion impacts on jobs and prosperity.”

Ends

Notes to editors

Labour’s five economic red lines on negotiations:

Ensure freedom of trade for UK businesses in the EU, and freedom of trade for EU businesses in the UK.

No EU citizen currently living or working in the UK will have their residency rights affected. No UK citizen currently living or working in the EU will have their rights affected.

Existing protections at work provided by the EU must be maintained.

The UK’s role in the European Investment Bank should be maintained.

The rights of UK financial services companies to win business across the EU must be maintained