May rules out paying for a City single market deal

DOWNING Street yesterday ruled out paying Brussels to allow the City of London to keep access to the EU single market following Brexit, after Chancellor Philip Hammond appeared to suggest it was possible.

It came after reports that many European countries are open to allowing British financial firms privileged access in return for payments to the EU budget. One European diplomat said: “If Britain wants to trade budget contributions for access to the single market for the City, there will be many takers.”

Asked about the idea, Mr Hammond seemed not to rule out the possibility, saying: “We will talk about all of these things.” However, a Downing Street spokesman said yesterday: “We will not be paying for market access. The Government’s position as set out by the Prime Minister is unchanged.

“We will continue working together to promote the long-term economic development of our continent.

“This will include continuing to take part in specific policies and programmes where that is in our joint interest, making an ongoing contribution to cover our fair share of costs involved.”