Throughout the Brexit process to date, the City has learned to fend for itself. Politicians are always more inclined to address manufactures in the Midlands than suits in the Square Mile.
This is why the chancellor's annual Mansion House address is important. It's a rare opportunity to show a bit of love to the country's most valuable sector.
Last night, Philip Hammond sought to lift the City's gaze beyond Brexit. Indeed, beyond the EU. As important as it is to secure a workable deal on financial services, Hammond rightly identified bigger fish to fry, and bigger prizes to be won.
Building on an idea first floated in 2016 by the Swiss Bankers Association, Hammond set out a vision for forging new regulatory partnerships with financial hubs around the world. While the EU appears so far to have rebuffed all suggestions of working on a mutual recognition basis, other centres – with fewer political balls to juggle – have no such qualms, and would be willing to enter into a new partnership with the worlds biggest financial district.
The fact the chancellor hammered home his rejection of enhanced equivalence (the EU's preferred post-Brexit regime) shows that he's not for turning. He reiterated his call for a bespoke and ambitious financial services deal – despite a growing number of voices on both sides of the channel questioning its viability.
But Hammond positioned 'mutual recognition' as an approach with value far beyond Brexit, broadening it to encompass other global financial centres. His message to the EU was bullish, essentially saying 'you're welcome to join us.'
This is not the first time we have heard a minister talk about the opportunities for Global Britain – but it is one of the more intriguing, and while it would rely to some extent on agreements being struck at an intergovernmental level, there is much the industry can do under its own steam.
The City's success has been built on its global connections and there is no reason why that asset must necessarily dissipate as a result of Brexit. Indeed, it must be at the heart of policy-making if the City is to thrive.
Thrashing out trading arrangements with the EU is important, but it is not the whole ball game. Hammond is right to look further afield.
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