Chancellor Philip Hammond has defended the government’s watered-down Brexit plan for financial services, telling a sceptical City of London that proposals in a long-awaited white paper would allow the sector “to flourish”.

Mr Hammond confirmed he had abandoned his original “mutual recognition” plan in the 98-page government document that sets out plans for a future relationship between the UK and the EU. He said the financial services proposal was a “pragmatic solution” that would provide “sufficient stability and certainty for the market”.


The Lloyd’s of London chief says the government’s plan for relations with the EU after Brexit will speed up the departure of firms from the UK.

Inga Beale said the White Paper would see the 300-year old insurance market go “full speed ahead” to set up its subsidiary in Brussels – and spur others on as well.