The UK’s financial services sector has the ability to weather “no deal” on Brexit, according to Lloyds Banking Group chairman Norman Blackwell.
The businessman says 80 per cent of activity in the City is not connected to the EU and that most of the activity that is will not necessarily move. the Financial Times reports.
“I’m not complacent, but I do think London and UK financial services can weather a situation where there is no deal,” Blackwell told the City Week conference, listing its legal system, expertise and infrastructure as insurmountable advantages.
The Conservative election manifesto has emphasised the party’s belief that no deal is better than a bad deal and urges voters to give Prime Minister Theresa May the power to walk away from Brexit negotiations with the European Union.
Blackwell listed Frankfurt, Paris, Dublin, Luxembourg and Madrid as cities where a limited number of jobs may move, but rejected claims that the City is like a “Jenga tower”, a comparison that was made by HSBC chairman Douglas Flint.
“Rather than a Jenga tower, I think of a Tower of London, with deep foundations,” Blackwell argues.
Blackwell publicly expressed his personal support for Brexit in the lead up to last year’s referendum on the UK’s exit from the EU.