George Osborne has warned European countries not to try to tempt away Britain’s lucrative finance industries in the aftermath of Brexit.
The former Chancellor said that trying to lure key companies from London to continental cities like Frankfurt or Paris would backfire and impoverish the entire continent.
He suggested that if European governments tried to tempt business away, it would disadvantage them in the long run as the only realistic alternatives to London are outside Europe altogether.
@George_Osborne giving Margaret Thatcher Lecture at the Guildhall @CPSThinkTank. Brilliant Lecture pic.twitter.com/u1giJU7I0o
— Robert Freeman (@mrbelveze) July 18, 2016
He made the veiled warning in his first public appearance since being brutally sacked from government by new Prime Minister Theresa May, who gave his old job to cabinet colleague Philip Hammond.
Mr Osborne spoke to a crowd of City figures at London’s Guildhall while delivering the annual Margaret Thatcher Lecture for the Centre for Policy Studies think-tank, with Heat Street listening in from the sidelines.
Answering an audience question at the close of his speech, he sketched out a plan for post-Brexit London’s interaction with the rest of the EU.
Honoured to give annual Margaret Thatcher Centre for Policy Studies lecture & thoughts on economic stability,One Nation and UK's global role
— George Osborne (@George_Osborne) July 18, 2016
He said: “So as we begin to negotiate our exit from the EU I will want to see the maximum possible access for our financial services and vice versa for European companies.
“And an understanding that in the end London has a huge amount going for it as a global financial centre.
“The choice for the whole of Europe is not whether that moves to some other European capital – because I don’t think it will – or whether it moves out of Europe altogether. And I don’t think that’s in the interest of any European country.”
It comes after widespread reports that other capitals are moving on London’s rich financial industries.
The Wall Street Journal reported organised pushes from Frankfurt and Dublin targeting wary investors and banks who may feel they need to up sticks in light of the Brexit vote.
French Prime Minister Manuel Valls has also been talking up Paris as “the financial capital of the future” – a clear tilt at London’s supremacy.
Osborne’s statements seem to imply that any predictions of a full-blown London exodus, however, will be proved wrong.
Elsewhere in the address Mr Osborne seemed jovial and at ease with his recent, sharp demotion.
Game @George_Osborne jokes he is 'more Ex than Chequer' at @CPSThinkTank Margaret Thatcher lecture
— Kieran Corcoran (@kj_corcoran) July 18, 2016
Opening his speech, he told the crowds: “When I was invited to give this office I held one of the great offices of state.
“Now I come to you as a humble backbench member of Parliament, more Ex- than Chequer.”
During the speech’s introduction, he laughed along as Lord Saatchi mimed stabbing somebody in the back – a none-too-subtle reference to his removal from the Treasury.
