'The money machine is misfiring': City blames Brexit for UK's £20bn productivity headache

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Britain's financial sector has been a significant contributor to the country's economic growth and tax revenues for years, but Brexit seems to have derailed this "money machine", according to experts. The City of London, once a global hub for finance, is now struggling to regain its footing after the UK left the European Union.

According to Rob Rooney, the former top executive at Morgan Stanley's London office, Frankfurt and other EU cities are now outperforming London in terms of financial services output. Rooney relocated his company's EU-facing operations to Frankfurt as a precautionary measure before the Brexit vote, but even this move couldn't offset the negative impact of the UK's departure from the EU.

Over 440 City companies have since followed suit, moving their assets and personnel to other EU countries in search of more favorable regulatory environments. This has resulted in a significant loss of financial services output for London, which is now struggling to compete with its European rivals.

The economic impact of Brexit on Britain's productivity growth has been stark. The Office for Budget Responsibility (OBR) has downgraded its forecast for trend productivity growth from 1.25% to just 0.9%, a decline that could add £21 billion to government borrowing by the end of the decade.

Experts point out that this decline is not just due to Brexit, but also due to the UK's post-2008 financial crisis legacy and the failure to invest in new industries such as technology and innovation.

However, Labour's chancellor, Rachel Reeves, believes that by promoting closer ties with the EU single market or customs union, Britain can boost productivity growth. She has said that this approach would help increase tax revenues and improve living standards for workers.

While some economists have welcomed this strategy, others warn that it may not be enough to address the underlying issues with the City's pre-crisis productivity growth model, which relied on excessive risk-taking and unsustainable profits.

For former Morgan Stanley executive Rob Rooney, however, London's future as a financial hub is crucial for the country's economic recovery. He believes that Britain must innovate and attract new businesses to the sector if it wants to regain its competitiveness in the global market.

In a statement, Reeves has said that "the money machine, if you will, the biggest single contributor to tax receipts – one of single most important contributors to the UK economy – is misfiring", but she remains optimistic about Labour's plans to reboot the City and boost productivity growth through closer ties with the EU.
 
Brexit has been a total disaster for the financial sector in London, it's like they expected everyone to just magically adapt 🤑. Companies are fleeing left and right, it's only a matter of time before the whole thing collapses. I mean, Frankfurt is outperforming them now, that's not a coincidence 🤦‍♂️. And don't even get me started on the productivity growth, 0.9%? That's laughable, they need to get their act together and innovate, but nope, it's all about rehashing old models that worked in the past 🙄. Labour thinks closer ties with the EU will solve everything? Please, just a band-aid on a bullet wound 💸. The UK needs a total overhaul, not some half-baked plan to reboot the City.
 
🤔 I'm not buying this "money machine" narrative just yet... 🤑 London's financial sector has always been a bit of a gamble, if you ask me. All this talk about Brexit being the problem is convenient for those who don't want to acknowledge the systemic issues that existed before the crisis. The fact that Frankfurt and other EU cities are outperforming London doesn't necessarily mean it's all because of Brexit – what about investment in new industries like tech? 🤖 We need a more nuanced conversation about what's really going on with productivity growth in the UK.
 
🤔 Brexit has really taken its toll on Britain's financial sector, right? I mean, it was already struggling before all this happened 📉. Now Frankfurt is basically giving London a run for its money 💸. It's crazy to think that over 440 companies have moved their assets to EU countries just because of the regulatory environment 🤯.

I think Rachel Reeves has some good ideas about promoting closer ties with the EU, though 👍. If Britain can boost productivity growth and increase tax revenues, it could really help the country recover from this Brexit slowdown 💪. But at the same time, I'm not sure if just copying EU regulations is enough to fix the underlying issues with London's pre-crisis productivity growth model 🤔.

London needs to innovate and attract new businesses to the sector if it wants to regain its competitiveness in the global market 💻. That means investing in tech and innovation, and finding ways to make finance more sustainable and responsible 🌎. Britain can't just rely on the past; it needs to look towards the future and build a better financial hub for itself 🚀
 
I'm literally worried about what's gonna happen to London's finances 🤕! I mean, all these big companies moving out can't be good for the economy, right? 🤔 It's like, they're taking their businesses elsewhere because of Brexit and it's not even a level playing field anymore 💸. But at the same time, Rachel Reeves is totally on point with her plan to get closer to the EU market - that would give us so much more opportunities for growth 💥! We just need to innovate and attract new businesses in finance and tech, you know? 📈🌐
 
🤔 I'm really worried about what's happening to our financial sector. It feels like Brexit was a huge mistake, especially for something that's supposed to be a big earner for us. 440 companies moving out? That's insane! 🚫 London used to be the go-to place for finance, but now Frankfurt is giving them a run for their money. It's not just about Brexit though - we need to invest in new industries and tech, that's the real problem.

I'm all for Rachel Reeves' idea of getting closer to the EU single market, it might help boost productivity growth and tax revenues. But we can't just rely on that, we need a more sustainable plan. The economic impact of Brexit is huge, £21 billion downgraded forecast? That's not good. 📉
 
🤔 so like Brexit was supposed to give Britain more control over its own laws and trade deals, but it seems like that's not really happening... Frankfurt is basically outperforming London now, which is weird because I thought London would be all about innovation and tech 📈. But it looks like the City's old model of just taking risks and hoping for the best isn't working anymore.

I mean, Rachel Reeves' idea to just stay in the EU single market or customs union seems pretty tempting, but at the same time, I can see why some economists would be skeptical... we need to address the underlying issues with how the City was run before the crisis, not just patch things up with some Band-Aid solution 🤷‍♂️. And Rob Rooney's right that London needs to innovate and attract new businesses if it wants to regain its status as a global financial hub 💼. But it's also clear that Brexit has had a really negative impact on Britain's productivity growth, and we need to find ways to fix that ASAP 💪.
 
omg 🤯 Brexit has literally tanked Britain's financial sector 😱! London, which used to be a major hub for finance, is now struggling to keep up with Frankfurt and other EU cities 🌆. I mean, over 440 companies have already moved their ops to EU countries because of the regulatory environment ⚖️. It's not just Brexit, though - the UK's post-2008 financial crisis legacy is still affecting productivity growth 📉. But Labour's plan to promote closer ties with the EU single market or customs union might actually help 🤔. We need London to innovate and attract new businesses if we want it to regain its competitiveness in the global market 💻. Reeves says "the money machine" is misfiring, but I think that's an understatement 😂. We need a more detailed plan to reboot the City and boost productivity growth, stat! ⏰
 
🤔 it's crazy to think that Brexit was supposed to be a game-changer for Britain, but now it seems like London's financial sector is just struggling to keep up... Frankfurt is already outperforming them in terms of financial services output 📈 and it's not just about the EU either, there's also this legacy of post-2008 financial crisis that's still haunting them. Like, the UK needs to invest in new industries and innovation, period 💸
 
🤔 Brexit has been a total disaster for Britain's financial sector, it's like they lost their best client overnight 🚫. I mean, Frankfurt and other EU cities are now outpacing London in terms of financial services output? That's crazy talk! Labour's plan to promote closer ties with the EU single market or customs union is actually a genius move 🤑. By doing so, they can boost productivity growth, increase tax revenues, and improve living standards for workers. It's about time someone took control of the City's pre-crisis productivity growth model, which relied on excessive risk-taking and unsustainable profits 💸.

But what really gets me is that experts are downplaying the impact of Brexit on Britain's economic growth 🤷‍♂️. I mean, we all know that post-2008 financial crisis legacy has been holding us back for years. And now they're saying it's not just about Brexit? That's like blaming the economy for being slow because you forgot to water your plants 🌱.

Anyway, Rachel Reeves is on the right track with her plans to reboot the City and attract new businesses to the sector. We need innovation and competitiveness in that sector if we want to regain our global market share 🚀. So, Labour's plan might not be perfect, but it's a step in the right direction 👍.
 
Brexit has really messed up Britains economy, right? I mean, they're loosing all their money from finance stuff now Frankfurt and other EU cities are killing them 🤑. And it's not just Brexit tho, its like their whole industry was already broken after 2008 financial crisis...

I think Rachel Reeves idea of getting closer to the EU market is a good one tho... but like Rob Rooney said London needs some serious innovation lol. They cant just keep relying on old ways of making money.
 
🤔 I'm literally so done with the whole Brexit thing... like, can't we just figure out how to make London work again? 🙄 The idea that Frankfurt is now outperforming London in terms of financial services output is wild 😲. And what's up with all these companies moving their assets and personnel to other EU countries? It's like they're abandoning ship 💸.

I think Rachel Reeves has a point about promoting closer ties with the EU single market or customs union, though 🤝. Maybe if we can get more favorable regulatory environments, we can boost productivity growth and increase tax revenues 📈. But at the same time, I'm worried that just trying to mimic the EU's model won't solve the underlying issues with London's pre-crisis productivity growth model 💡.

It feels like there are so many moving parts here, and it's hard to know where to start 🔄. Can we please just get some clarity on what Labour's plans are for rebooting the City? 🔍 And what about innovation and attracting new businesses to London? We need to think outside the box (or in this case, the Brexit-induced economic bubble) 🌐
 
The money machine 🤖 that was once so reliable for Britain's economic growth has suddenly gone haywire! It's a bit like when you've been relying on your go-to coffee shop for years, but one day it just stops serving your favorite brew 😩. You have to adapt and find new ways to get your caffeine fix.

The thing is, the City of London was built on some shaky ground 🏰 in the first place. The post-2008 financial crisis legacy has left its mark, and you can't just sweep it under the rug 🔴. Labour's plan to boost productivity growth through closer ties with the EU is a good start, but we need to look at what's really going on here.

We're not just talking about Brexit, we're talking about a broader conversation about how we build our economies and create value 🤝. The key is innovation and diversification, not just relying on one industry or sector 💡. Britain needs to find new ways to grow its economy, and that's going to take some hard work and thinking outside the box 🔓.

So, will London regain its footing as a global financial hub? Only time will tell 🕰️. But for now, it's a reminder that even the most seemingly solid foundations can crack under pressure 💥. We need to be prepared to adapt and evolve if we want to stay competitive in today's fast-paced world 🌎.
 
🤔 So Brexit was supposed to be some kind of magic solution for Britain's economy, right? 🙄 Turns out it's just been a huge mess from day one. I mean, London used to be this major hub for finance, and now Frankfurt is basically stealing its thunder? 🚫 The experts are saying that the UK's productivity growth has gone down the drain because of Brexit, which doesn't surprise me at all. I've always said that the only thing Britain knows how to do well is complaining about something, never actually fixing it. 😒 And now Rachel Reeves wants to fix this by basically begging the EU for a second chance? 🙄 Yeah, sure, let's see how that plays out... 💸
 
I'm tellin' ya, Brexit is like a slow-motion train wreck 🚂💥. One minute you're killin' it, next minute you're gettin' left behind. And now, our financial sector is payin' the price 💸. I mean, Frankfurt's stealin' all our thunder, and London's struggling to keep up ⏱️.

Labour's got a point about closin' the gap with the EU, though 🤝. We need to get back into the game, invest in new industries like tech and innovation 📈. But, at the same time, we gotta acknowledge that Brexit was a wake-up call for us to rethink our approach 🚨.

I'm not convinced, though, that just closin' ties with the EU is gonna fix the problem 💯. We need to think about how we're incentivizin' innovation and growth in London itself 🔍. Can't just rely on nostalgic views of the City's past glories, you know? We gotta build a new future 🌟.

Anyway, reckon Labour's got a good shot at gettin' it right, but I'm still seein' some red flags ⚠️. Will be interesting to see how this plays out 💥
 
🤔 so i think brexit is really showing its impact on britain now, especially when it comes to finance 📈 the city of london used to be a global hub but now frankfurt and other eu cities are outperforming them 💸 it's not just about brexit tho, there are other issues too like the financial crisis legacy and lack of investment in new industries tech and innovation 🚀 labor's plan to promote closer ties with the eu is definitely worth considering though, it could boost productivity growth and tax revenues 📊 but we gotta be real, some of these experts think it might not be enough on its own 🤝 what do you guys think? should britain try to reboot the city or focus on something else entirely? 💬
 
Brexit has really messed up Britain's financial scene 🤕 it's like they lost their mojo, you know? The whole 'money machine' thing was working just fine until they decided to leave the EU. Now Frankfurt and other cities are snatching up all the finance jobs and investments 🤑. I mean, it's not surprising really, who wants to be in a country with all this Brexit uncertainty?

And it's not just about the money, productivity growth is suffering too 📉. The OBR says it's down to 0.9% now, that's a big drop! And Rachel Reeves thinks rejoining the EU single market or customs union will fix everything? I'm skeptical 🤔. The old model was all about risk-taking and profits, how sustainable is that gonna be in the long run?

I think Rob Rooney gets it right, innovation and new industries are key 💡. If Britain wants to regain its financial competitiveness, they need to modernize and attract new businesses. It's not rocket science, but it does require some serious thinking 🤓.
 
🤔 I think Brexit has been overplayed as a sole reason for London's financial sector struggles. I mean, Frankfurt and other EU cities are just being more practical and adapting to change, you know? London needs to innovate and attract new businesses that aren't so reliant on traditional finance. It's not all doom and gloom, mate! 😊 The City's productivity growth model was already due for a shake-up after the 2008 crisis anyway. Rachel Reeves' plan to promote closer ties with the EU is a good one, but we need more than just that to boost productivity. We need investment in new industries like tech and innovation, and some serious reform of the way businesses operate. Don't get me wrong, I'm not saying Brexit isn't a factor, but let's be realistic here... 🤯
 
🤔 I mean come on, Brexit was supposed to be a game changer for the UK, and what do we get? The financial sector in London going down the drain 🚽. Frankfurt is basically taking our place now 🗺️. I'm not buying Rachel Reeves' idea of just regurgitating old policies and expecting different results 🙄. We need to think outside the box here (or rather, leave the EU single market altogether). The UK's financial sector has been a cash cow for years, but it's time for some real innovation 💡. No more being a "money machine" that only benefits the elites 🤑. Let's get the City back on track with new industries and risk-taking strategies, not just rehashing old ideas 🤷‍♂️.
 
I'm gonna say it, Brexit has been a total game-changer for the UK's finance sector 🤔. I mean, we all knew it was gonna hurt London at first, but now it's like Frankfurt and other EU cities are stealing the show 💸. All those companies moving their assets and personnel to Europe? That's some serious brain drain 💥. And yeah, productivity growth has taken a hit – 0.9%?! That's like, super low 📉. But you know what they say, "when life gives you lemons, make lemonade"... or in this case, when Brexit takes your financial sector, innovate and attract new businesses to the UK 🌱. Can't just rely on old tricks that led to the crisis in 2008... needs some serious reboot 💻
 
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