(8 January 2026 – United Kingdom) Prime Minister Sir Keir Starmer has signaled that the City of London will be excluded from his government’s push for “closer alignment” with the European Union, following lobbying from financial services firms wary of a return to Brussels rule books.
According to officials speaking to the Financial Times, while ministers support enhanced co-operation with the EU on financial services, Starmer has no plans to reintegrate the sector with EU regulations. The clarification comes after the Prime Minister suggested earlier this week that “if it’s in our national interest to have even closer alignment with the single market, then we should consider that.”
City leaders argue that the sector has moved on from post-Brexit debates over single market access. Steven Fine, CEO of investment bank Peel Hunt, said the UK now operates with “significantly less friction” than many European counterparts.