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London Assembly policy recommendations reflect Professor Denis Novy's advice

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London Assembly policy recommendations reflect Professor Denis Novy's advice

Advice given by Professor Dennis Novy to the London Assembly Economy Committee has been reflected in the Committee’s formal recommendations to Mayor of London Sadiq Khan.

Professor Novy was invited to appear before the Committee on 11 Jan to answer questions and give informed insight into the impact of Brexit on London’s economy.

The Committee held the hearing in order to better understand the impact that leaving the EU has had on London’s economy to date, including asking whether sufficient time has elapsed to understand this impact and whether it is possible to separate the impact of Brexit from other challenges such as the pandemic and Russia’s full-scale invasion of Ukraine.

Among other topics, in his evidence Professor Novy highlighted the risks to businesses of all sizes created by post-Brexit regulatory divergence, and the need to develop a cohesive strategy for trade in services.

In her letter to the Mayor, Committee Chair Marina Ahmad quoted Professor Novy’s remarks on regulatory divergence and uncertainty, saying: “we believe this is a policy area the Mayor should take interest in and work proactively with the Government on. The review of the TCA in 2026 presents an opportunity to do this.”

The letter goes on to make a formal recommendation to the Mayor on this issue.

Recommendation 2: Ahead of the 2026 review of the EU-UK Trade Cooperation Agreement, the Mayor should work with London & Partners to build the evidence base for the effects of regulatory divergence on London-based businesses. He should use this evidence to lobby the Government to ensure that London-based businesses are not negatively impacted by regulatory divergence from the EU.

Professor Novy said: “I am very pleased to see that the evidence session, which was wide-ranging and thorough, has led to specific recommendations to the Mayor of London based on the research evidence which I and the other guests shared with the Committee.

“During my evidence I called on politicians to work in a cross-party way to develop a strategy that reflects the strengths of the UK and the London economy.

“I hope that the Mayor picks up this challenge.”