Treasury chair calls for urgent update from City on Brexit

Nicky Morgan has called for an urgent update on the City’s preparedness for Brexit as she assumes her new role as chair of the influential Treasury select committee.

The Conservative MP has written to Prudential Regulation Authority chief executive Sam Woods for information about how banks and insurers are responding the risks of a “no deal” scenario, in which the UK abandons Brexit negotiations and falls back on WTO rules.

She has asked for a response by Wednesday.

The PRA had requested such information from banks, insurers and asset managers in April and required them to submit planning for the most adverse scenarios by mid July.

Morgan says the cliff edge facing businesses in April 2019 is concerning.

She has also asked Woods for information about the design of a potential transitional arrangement with the EU.

“Getting these arrangements right will be crucial for ensuring that the City retains its pre-eminence as a global financial centre, and to protect the economy and jobs as the UK leaves the EU.”

Former City lawyer and education secretary Nicky Morgan defeated fund manager Jacob Rees-Mogg to become chair of the Treasury select committee earlier this month.

Shortly after her election, Morgan called for a wider remit for the Treasury committee so that it could address areas that make a difference to household budgets and to their economic security, rather than a narrower focus on financial institutions.