Hammond: 'To succeed in the future, we must remain connected to the world'

The Mansion House speech is an annual speech given by the Chancellor on the state of the British economy.

Hammond said that as Britain leaves the EU, new relationships with "our European neighbours that protects patterns of trade" and "those business relationships that have been painstakingly built over decades" must be forged that will maintain low friction borders and open markets.

He added: "That does not make the Treasury, on my watch, 'the enemy of Brexit'. Rather, it makes it the champion of prosperity for the British people outside the EU, but working and trading closely with it.

"And part of that successful partnership must be a mechanism that enables UK EU financial services trade to continue, delivering the benefits of open markets and deep regulatory cooperation to businesses and citizens across our continent."

He went on to talk about his plans to launch a Global Financial Partnerships Strategy, which he said will "bring together governments, regulators and industry to build an enhanced framework for cross-border financial services, facilitating access to global markets and positioning the UK as the gateway of choice."

Hard Brexit could cost UK economy £54bn

He spoke about Britain's relationship already in place with countries outside of the EU, highlighting that it is already the leading global hub for renminbi trading outside of Greater China and is a major player in rupee financing.

"Connectivity was always at the heart of London's success. And to succeed in the future, we must remain connected to the world - including the important emerging markets.

"Our vision is for a set of new partnerships, combining new tools, like Free Trade Agreements, and existing ones, like our financial dialogues.

"Positioning the UK as the most global financial services market in the world because 'Global Britain' is not just a strategy for Britain's economic future. It is a statement about what kind of people we are - and about the economy and the society we are seeking to build."

Two-fifths of asset managers eyeing Brexit relocations

Hammond will be hoping his moves reassure the City who have been concerned about how it will prosper after Brexit and a possible exit from the single market. 

According to EY, some 39% of asset managers are considering leaving the UK and 25% have already chosen a location.

The survey also found also found 28% of firms have made, or intend to make, regulatory or structural changes to their products because of Brexit, such as shifting client assets from the UK into European vehicles, launching new funds abroad or creating overseas fund ranges. 

Responding to Hammond's comments, Chris Cummings, chief executive of the Investment Association, said: "The Chancellor is right to think big and bold for our country's global future post-Brexit.

"London is and will remain an important global financial centre when we leave the European Union. Whether we keep our top spot on the podium will depend on us staying one step ahead on innovation, competitiveness and our ability to recruit the best talent.

"As the countdown continues, both sides of the negotiating table should strive to keep the spirit of our broad and special partnership. For decades our industry has contributed to the prosperity of UK and European citizens. With the right framework, we can continue to do so in the years ahead."

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