The Telegraph on Saturday (HERE) claims The Treasury is looking at options to quit the single market saying discussions indicate a willingness by The City to scrap the so-called passporting system. However, the article seems to show the reality is a bit different.
First of all, The City of London's Corporation policy chief, Mr Boleat said the Norway option wouldn't control immigration and is therefore politically unacceptable - so The City have rejected it because they realise it can't be delivered. What the BBA (British Bankers Association) wants is for the UK to leave the single market but retain unimpeded access to EU markets. Good luck with that one.
Also, apparently what The Treasury wants to know is how many jobs would be lost if passporting is scrapped. If it's 5% of jobs this may be OK but if it gets to 30% or more then the loss of tax revenues would make it very difficult. I am not surprised financial companies might consider scrapping the passporting system because they wouldn't lose, they would simply move to Frankfurt or Paris. It would be the British taxpayer that would suffer. The article says top banks have already warned of the potential cost to the UK’s financial sector if the UK loses these rights. Barclays has said it would set up “alternative arrangements” in other EU countries, while Carolyn Fairbairn, the CBI director general, is pushing its case to remain in the single market.
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