City pushes back hard against closer EU ties

KEIR Starmer’s plan to foster closer economic ties with the European Union is likely to exclude financial services after senior City figures pushed back against the reintroduction of EU regulations.

- SIMON HUNT

KEIR Starmer’s plan to foster closer economic ties with the European Union is likely to exclude financial services after senior City figures pushed back against the reintroduction of EU regulations.

The prime minister has called for “closer ties” with the EU in a bid to boost economic growth, with senior cabinet members including justice secretary David Lammy mooting a proposal for a new customs union.

But senior City figures have expressed concern about the move, calling for carve-outs for financial services in any future negotiations to give the Square Mile greater regulatory freedom.