LAST_UPDATESat, 23 Jun 2018 9pm

UK Could Reject Brexit Trade Deal Excluding Financial Services - Hammond

Philip Hammond.Philip Hammond.

LONDON -- British Chancellor Philip Hammond warned that the government could reject any Brexit trade deal which comes excluding financial services, China's Xinhua news agency reported.

'’About two-thirds of debt and equity capital raised by European Union corporations are facilitated by banks based in United Kingdom,'’ he said on Wednesday at an event hosted by HSBC Banking Group.

Hammond said the financial services hub is an engine that powers the real economy not just in United Kingdom, but all across Europe.

"I am very clear on this. Not only that it is possible to include financial services within a trade deal but that it is very much in our mutual interest to do so," he added.

Meanwhile, Confederation of British Industry deputy director-general Josh Hardie said '’trying to forge a new trading relationship with our largest trading partner by not including financial services is like building a ship with no sails."

'’Protecting, maintaining and developing UK's world beating financial services sector, which is the lifeblood of both the UK's and the EU's economies, enables all other sectors to deliver jobs, innovate and grow,'’ he added.