Bank of England Governor Andrew Bailey stated that the UK must “rebuild relations” with the EU while respecting the decision of the British people to leave, during his Mansion House speech to investors.
“As a public official, I take no position on Brexit per se,” Bailey said. “But I do have to point out consequences.” He noted that the changed relationship with the EU post-Brexit has had an impact on the economy, particularly in goods trade compared to services. “It underlines why we must be alert to and welcome opportunities to rebuild relations while respecting that very important decision of the British people.”
Post-Brexit, the UK economy faced challenges in goods trade due to increased trade barriers. Bailey emphasized that the focus should not only be on the EU relationship, but also on other global economic factors, including geopolitical events and the recent election of Donald Trump in the US, who is expected to impose high tariffs on imports.
In her speech, Chancellor Rachel Reeves highlighted the importance of strengthening ties with mainland Europe, though she clarified that there are no plans to rejoin the EU. She referred to financial services as “the crown jewel in our economy” and stressed the need to value this sector. The UK government is set to publish a strategy for financial services in spring next year, with an emphasis on fintech, sustainable finance, asset management, insurance, and capital markets.