City policy chairman: 10 years on from Brexit, the UK still needs the EU

The impact of Brexit on the City has been more nuanced than many predicted, but the fundamental reality endures: we still need each other, writes Chris Hayward

At a time of geopolitical instability and economic uncertainty, the relationship between the UK and Ireland matters more than ever. This was palpable as I met with a series of industry and political figures in Dublin last week. 

Our relationship is not simply shaped by geography or history. It is a modern economic partnership built on shared interests, deep investment ties and common values around openness, innovation and sustainability. In financial and professional services particularly, the links between our two countries remain exceptionally strong.

The UK is Ireland’s largest trading partner, while Ireland is the UK’s sixth largest. Trade in financial services alone reached £6.6bn by the end of 2025, up more than 15 per cent on the previous year. Irish foreign direct investment into the UK now stands at more than £77bn.

These figures reflect something important: despite political turbulence in recent years, our economies remain deeply interconnected.

That is why this moment presents an opportunity not merely to protect existing ties, but to strengthen them further.

The UK remains the world’s leading international financial centre. London’s capital markets are among the deepest and most liquid globally, capable of helping to bridge major investment gaps across Europe, including in Ireland. As countries seek to finance infrastructure, housing, energy transition and long-term growth, access to international capital has never been more important.

The City of London also has a major role to play in supporting the transition to net zero. The UK is a global hub for green finance, sustainable investment and climate risk expertise. Ireland has ambitious climate goals, and there is enormous scope for deeper collaboration in mobilising private capital towards shared sustainability objectives.

At the same time, businesses are operating in a far more volatile world. From geopolitical tensions to cyber threats and supply chain disruption, risk has become more complex and interconnected. The London insurance market – the largest specialty insurance market in the world – is uniquely positioned to help Irish businesses navigate that uncertainty.

EU and EU remain closely linked post-Brexit

Almost 10 years after the Brexit vote the interconnectedness of EU and UK financial markets remains a fact of life. The impact of Brexit on the City has been more nuanced than many predicted, but the fundamental reality endures: we still need each other.

Since the referendum, the number of financial and professional services jobs in the City has risen by nearly 50 per cent to 676,000. The number of businesses has increased by more than a third to 24,000. London remains the world’s leading financial centre, with growing strengths in AI, fintech, asset management and insurance.

But this is not an argument for complacency or division. Quite the opposite. The economic interests of the UK and EU remain closely aligned, particularly in financial services and investment.

That is why the upcoming EU-UK Leaders’ Summit matters. Both sides should approach it with ambition and pragmatism. We should recognise the vital role that cross-border investment plays in supporting growth, competitiveness and the green transition.

We are particularly concerned about aspects of the implementation of Capital Requirements Directive VI, which risks creating unnecessary complexity and barriers to investment between the UK and EU. At a time when Europe needs more investment, not less, we should avoid measures that fragment markets or discourage international capital flows.

Above all, the UK and EU share the same fundamental values: democracy, openness, rule of law and sustainability. The defining challenges of our age – climate change, technological transformation, economic security and geopolitical instability – cannot be solved by nations acting alone.

They require cooperation.

That spirit of partnership is why I went to Dublin – and why strengthening the relationship between the UK, Ireland and Europe remains so important for our shared future.

Chris Hayward is the policy chairman at the City of London Corporation