A financial services agreement with the European Union has been hailed an “important turning point”, according to Jeremy Hunt.
The Chancellor signed the memorandum of understanding (MoU), which will see greater co-operation between officials from the EU and the Treasury.
EU financial services commissioner Mairead McGuinness also agreed to the deal in Brussels this afternoon.
Hunt said he was “absolutely delighted” following the signing of the key agreement.
He said it was “not the end of a process but the beginning” and the co-operation would “make a real and tangible difference” in both the UK and EU.
Hunt explained that the MoU would help to assist Britain and London’s role as a hub of financial services around the world.
The new arrangement will allow officials to discuss regulatory changes, international developments and risks to financial markets.
McGuinness said it was “fair to say we have turned a page” in the relationship.
She said: “This has allowed us to move forward in a spirit of partnership, based on trust, co-operation and delivering benefits for people on both sides.
“This MoU we’ve just signed is one example of the benefits of partnership.”
EU officials have stressed that the memorandum would not regain access to the single market or prejudge decisions on equivalence, where one side recognises the other’s regulations.
The Treasury added that the memorandum will allow the parties to “coordinate positions where appropriate on issues ahead of G7, G20 and other international meetings”.
Treasury minister Andrew Griffiths said it was a “momentous day in the history of British and EU relations”.
Griffiths said: “2023 is proving to be a banner year for financial services at home and abroad.