UK less 'hospitable' for foreign talent after Brexit, says banking chief - Politics live

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Theresa May wanted to wrap phase one of the Brexit talks on Monday. It is Thursday, and we are still waiting for a deal. Last night Leo Varadkar, the Irish prime minister, said he was expecting a new text by the end of today. Michel Barnier, the EU’s chief Brexit negotiator, said it has to be finalised tomorrow if EU leaders are going to agree to open trade talks next week. Perhaps we will get a settlement within the next few hours, although it is starting to look as elusive as the government’s Brexit impact reports.

Here is our overnight story with all the latest.

Related: Brexit: UK has 48 hours to agree potential deal or talks cannot progress

And here is a summary of the various Brexit news lines from this morning’s Today programme.

  • Chris Grayling, the Brexiter transport secretary, said the “regulatory alignment” with the EU proposed for Northern Ireland after Brexit as one option in the draft UK-EU agreement rejected by the DUP on Monday would not involve the UK having the same rules as Europe. He said:

We don’t have to have, we have never said we will have and we don’t want a situation where in future our laws are identical to those of the EU. There will be areas where we do things in a very similar way, there are will be areas where we don’t do things in a similar way.

That’s all the prime minister was seeking to achieve, to make sure we can ensure that trade flows as freely as possible across the border of Northern Ireland and southern Ireland.

  • Grayling said he was “absolutely optimistic” that there would be a deal. He said:

I remain absolutely optimistic that we will reach a successful point, we will move on to the trade talks, because ultimately it is in everybody’s interests for that to happen... If you are running a business in the Republic of Ireland and shipping foods to the EU, the relationship with the UK is pretty fundamentally important, because your goods need to go through the UK.

  • The chief executive of Standard Chartered, one of the UK’s biggest banks, said the UK’s ability to attract talent is suffering because the country is no longer seen as such a “hospitable” plac e. Bill Winters also said that banks were “preparing for the worst” on Brexit, with his own institution spending millions on expanding a base in Frankfurt in case it needs to move staff and operations from London. On Brexit deterring some talented foreign workers he said:

Some of the best talent that we can have in the UK marketplace is coming from students that have chosen to study here and then stayed for some extended period afterwards. We’ve noticed that impact already, more through a sense from non-UKs or foreigners that this might not be such a hospitable place any longer. It’s more psychological than contractual, as it were. But I think it’s something we must really be very careful about.

And on banks making plans to leave London he said:



London will take hits in the context of Brexit. Some jobs will move from London to the continent. I think big parts of the euro-denominated corporate banking business will be forced into Europe.

It’s possible that through the Brexit negotiations that there is some sort of extended passporting rule, but none of us are expecting that quite frankly, or preparing for that. We have to prepare for the worst. Our regulators in the UK require us to prepare for the worst.

The best would be we carry on as we are and passporting is allowed to continue to exist and we can run our business as we do today, in which case we will have spent a bunch of money [on contingency plans for moving to Frankfurt] and flushed it down the toilet.

  • Lord Jay, the former head of the Foreign Office and acting chair of the Lords EU committee, said he was surprised the government had not done proper Brexit impact assessments. Describing the 850 pages of documents that have been shown to MPs and peers, he said:

They are quite interesting but they are pretty underwhelming. They don’t really include an impact assessment, as far as I can tell.

I would have thought there would have been a proper impact assessment, a proper assessment of what the impact of leaving the EU is going to be on different sectors of the economy.

What we’ve got is interesting, and there’s a lot of good information there, but I can’t really say it’s a real impact assessment. It’s a fairly underwhelming report.

  • Bernard Jenkin, a Conservative Brexiter, said the government should not give up the goal of “regulatory autonomy” after Brexit. He said:

We shouldn’t be allowing ourselves to be bullied into promising more and more money or giving up the goal of regulatory autonomy or being dragged into a long period of uncertainty without clarity on what we are getting at the end of it.

Here is the agenda for the day.

: Michael Gove, the environment secretary, takes questions in the Commons.

: Boris Johnson, the foreign secretary, gives a speech on fighting terrorism. As Patrick Wintour reports, he will “pin the responsibility for the ‘crack cocaine of jihadi terrorism’ on repressive states, and not western foreign policy”.

: George Osborne, the former chancellor, speaks at a press gallery lunch.

You can read all today’s Guardian politics stories here.

Here is the Politico Europe round-up of this morning’s political news from Jack Blanchard’s Playbook. Here is the ConservativeHome round-up of today’s political stories. And here is the PoliticsHome list of today’ top 10 must reads.

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