Over the weekend, Will Hutton used his Observer column to rubbish Truss’s economic plans and peddle the typical Remainer refrain that Brexit has killed UK exports:
“As British exports stagnate, there is not a nod to the role of trade as a propellant of growth. The UK, as the second largest exporter of services in the world […] is locked out of the country’s largest markets in Europe. It is a growth plan built on sand.”
This is a myth that frequently appears in Guardian and Observer column inches, despite all the inconvenient evidence to the contrary. As Guido reported in January, a report by the City of London Corporation found that London is still the top overall destination for financial services worldwide – including as the leading foreign exchange trading centre – thanks to an “unmatched international financial reach” across 95 metrics. The Global Financial Centres Index 2021 also put London second behind only New York as the top financial hub in the world.
And for all the EU’s incessant sabre-rattling, the London Stock Exchange’s London Clearing House unit is still clearing 90% of euro interest rate derivatives, with the EU in February even extending permission for Britain’s clearing houses to continue serving European customers until at least 2025. The City is still a financial powerhouse, despite what Remainers pretend to believe…
As Tim Worstall blogged for the Adam Smith Institute yesterday:
“It’s not about trade barriers nor being inside them. In fact, London has often benefitted from being well outside regulatory systems – the Eurobond market is proof of that.”
As for British exports “stagnating“, last month British exports to the EU hit their highest level ever according to figures from the Office for National Statistics. Hardly “locked out” of the markets then…