Agenda item

Policy Statement

To receive a statement from the Chairman of the Policy and Resources Committee.

Minutes:

The Chairman of the Policy and Resources Committee delivered a statement on the outcome of the recent referendum on membership of the European Union and, in particular the City Corporation’s role in ensuring the best possible outcome for the City, London and the United Kingdom upon withdrawal from the European Union.

 

Whilst thanking the Chairman for the update provided, a Member expressed concern that insufficient time had been made available for Honourable Members to properly scrutinise and review the information provided, in particular the findings of certain pieces of research which had been referenced in the Statement and circulated to the Court electronically. He observed that there was a duty upon all Members to ensure that adequate scrutiny was provided to such items if they were to provide the rationale for the City Corporation’s future activities, consequently suggesting that a formal debate should be held at the next meeting of the Court on the City’s approach to Brexit. The Chairman agreed that such a debate would be helpful and the Town Clerk confirmed that a report would be presented to the next meeting, thereby providing the opportunity for a full debate.

 

Responding to a question concerning the opportunities presented by Brexit, the Chairman said that the City Corporation was vigorously pursuing new opportunities to attract business to the city. These did not arise as a result of Brexit but were now even more necessary. He added that there were now some steps that might be taken which could also present opportunities, including tax changes to help the growing technology sector and changes to visa policies to attract the best talent from across the world. The repeal of some regulatory legislation above the EU minima which had previously inhibited businesses could also be considered, with the Chairman making reference to a number of fund management businesses which had relocated to Ireland and Luxembourg as a result of the UK’s more stringent regulatory framework.

 

A Member took the opportunity to highlight concerns which had been expressed to him by companies in the technology sector with regard to the future of data protection, the regulations for which currently came from the European Union. He sought assurances from the Chairman that the City Corporation’s work included the full breadth of issues, including data protection, and was not limited to financial and professional services.

 

The Chairman agreed that data protection was a significant issue, adding that he was aware of similar concerns within the financial services sector. He agreed that it would be important for the proper diligence to be applied to this area to obviate any difficulties come the point of transition, but noted that there was a limit to the City Corporation’s expertise and what it therefore might seek to do in this area, adding that the technology sector would have its own trade fora through which representations might be made more appropriately.

 

Responding to a further question concerning the City Corporation’s level of assertiveness in discussions, the Chairman cautioned that it would be important to strike an appropriate balance so that the City was not seen as being overly protectionist. He highlighted the need to make clear the benefits brought by the financial and professional services industries in terms of jobs and tax revenues, as well as the importance to those businesses of financial stability and access to European markets and finance. He observed the need to engage successfully with all European Governments, as well as the UK Government, to ensure a smooth transition and added that he would be happy to consider again the balance of assertiveness should Members wish.

 

Motion – That the provisions of Standing Order No. 11, restricting the number of questions permitted, be suspended to allow for debate to continue.

 

Upon the Question being put, the Lord Mayor declared the Motion to be carried.

 

A Member sought assurances from the Chairman that the City Corporation would continue to echo the concerns of City businesses, both in public and in private, to try to ensure that the financial and professional services sectors were prominent in Government thinking during Brexit negotiations. She noted that these sectors were particularly integral to the City and suggested that the City Corporation had a duty to advocate on their behalf. The Chairman reassured Members on this point and confirmed that there was daily communication and regular collaboration with city businesses and trade bodies on this issue. He added that it was incumbent on all Members to be in regular contact with businesses in their Wards so as to feed back their views and allow the City Corporation to reflect them, noting that it was the fact that the City Corporation spoke on behalf of businesses rather than for its own gain which gave it credence in the debate.