Exit from the EU could hit financial standing

The chairman of Standard Life and industry lobby group The City UK claimed that the European debate is of “existential importance” as Conservatives backbenchers lobby for a public vote on EU membership next year.

Chris Cummings, chief executive of The City UK, told the Yorkshire Post that fewer jobs would be created in regional centres like Yorkshire if the nation decided to quit the trading bloc.

Speaking at a dinner in London, Mr Grimstone said: “To put my cards firmly on the table, I do not believe the City’s pre-eminent position will survive if we lose our role as Europe’s financial capital, and I do not believe we can maintain that position if we are not part of the single market.

“Europe is a subject that has traditionally been so divisive that even to discuss it has meant risking being branded a fanatic. But that situation is changing.

“Decisions will be taken both here and on the continent that will determine not just the relationship between Britain and the rest of Europe, but London’s position as a global financial centre.

“The European debate is of existential importance, and one in which the City must play an active role.

“Our key task is to help create the right conditions to drive economic growth in the UK by ensuring that in financial and related professional services, this country is, and remains, the best place in the world in which and from which to do business.”

The single market, which came into being in 1993, allows for the free movement of goods, people, services and capital.

Prime Minister David Cameron has said the Conservatives will hold a public referendum on membership in 2017 if they win the next general election, but he is facing calls from some Tory MPs to bring the vote forward to 2014.

The majority of foreign investment in the UK is from global financial services firms, according to The City UK.