Hammond pledges UK will remain open to global talent

A more relaxed attitude towards immigration in Brexit talks appeared to be signalled on Tuesday in a speech to City of London finance chiefs by Chancellor of the Exchequer Philip Hammond.Although Prime Minister Theresa May has made immigration controls a 'red line' in negotiations with the EU, Mr Hammond indicated a subtle shift in approach when he said that while the movement of people would be managed, it would not be "shut down".In a speech at the Mansion House in which he pledged to put jobs first, Mr Hammond said he was not ignoring public hostility towards globalisation and mass immigration, but he added: "We are not about to turn inward. But we do want to ensure that the arrangements we have in place work for our economy."Just as the British people understand the benefits of trade, so too they understand how important it is to business to be able to access global talent and to move individuals around their organisations. So while we seek to manage migration, we do not seek to shut it down."Mr Hammond also suggested the UK could seek access to funds from the European Investment Bank (EIB) after Brexit and announced an expansion of domestic support for capital investment in infrastructure and public services, raising the possibility of tax increases."In the long term, it may be mutually beneficial to maintain a relationship between the UK and the EIB after we leave the EU. And we will explore the options together," he said.Mr Hammond said Britons were weary of austerity after "seven years of hard slog" and said the government would now tackle the "domestic weaknesses that have plagued us", including public and private under-investment, inadequate skills and regional economic inequality.The chancellor said the government would expand construction guarantees for infrastructure projects by broadening the UK Guarantee Scheme; consider the introduction of "credit enhancement tools" to reduce the financial risk of complex projects; raise the limit the British Business Bank can invest in venture capital funds from 33 per cent to 50 per cent; and bring forward £400 million additional investment announced in the Autumn Statement.Mr Hammond said his three priorities for a "Brexit for Britain" were a comprehensive free trade agreement for goods and services, transitional arrangements "to avoid unnecessary disruption and dangerous cliff edges", and "frictionless customs arrangements" for cross-border trade, especially by maintaining the "open and free-flowing" Irish border."To do this in the context of our wider objectives will be challenging," he added. "It will almost certainly involve the deployment of new technology."And therefore we'll almost certainly need an implementation period, outside the customs union itself, but with current customs border arrangements remaining in place, until new long-term arrangements are up and running.""The future of our economy is inexorably linked to the kind of Brexit deal that we reach with the EU. And I am confident we can do a Brexit deal that puts jobs and prosperity first - that reassures employers that they will still be able to access the talent they need, that keeps our markets for goods and services and capital open, that achieves early agreement on transitional arrangements, so that trade can carry on flowing smoothly, and businesses up and down the country can move on with investment decisions that they want to make but that have been on hold since the referendum."The collective sigh of relief will be audible. The benefit to our economy will be huge in established sectors like manufacturing, the car industry, financial services, and pharmaceuticals, in emerging areas like biotech, and fintech, in the housing market, in the services sector, in the travel industry, in companies, large and small, right up and down our country. employing, between them, millions of people."Our departure from the EU is under way. But ensuring that it happens via a smooth pathway to a deep and special future partnership with our EU neighbours - one that protects jobs, prosperity, and living standards in Britain - will require every ounce of skill and diplomacy that we can muster."Mr Hammond's speech - especially his insistence that the UK must remain attractive to talented workers from around the world - was well received by TheCityUK, the lobby group for the capital's financial sector. Miles Celic, the group's chief executive, also applauded Mr Hammond's approach to Brexit."The chancellor was right to point out that the fragmentation of financial markets, and the financial ecosystem which exist in the UK, would leave everyone poorer," Mr Celic said. "As he said, avoiding this outcome is a huge prize and must be a core focus of any new agreement with the EU."With Brexit negotiations under way, it is reassuring to hear the chancellor reinforce the need for a transitional period."We have consistently called for bridging and adaptation periods to be a critical part of a Brexit deal to ensure continuity of service to customers here in the UK and across the EU and to enable business enough time to adapt to the new relationship. As the Chancellor himself noted, a deal with the EU which continues to support British jobs and business and avoids any sharp cliff edge is paramount."The chancellor was very clear that when we leave the EU, we need a bespoke trade deal which covers goods but also the service industry on which the UK economy overwhelmingly depends. We want such a deal to be based on mutual market access based on mutual recognition and regulatory cooperation."We are pleased to hear Philip Hammond recognise the importance of continued access to global talent. Our industry's global competitive advantage is buoyed by our ability to attract and retain the brightest and the best talent from across the world. A deal that includes mutual access to talent will therefore also be key."

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