Brexit: Financial Services Sector

Debate between Baroness Goldie and Baroness Liddell of Coatdyke

Tuesday 23rd January 2018 Lords Chamber

[Baroness Goldie]

The noble Baroness seems to imply that the Government are operating in some kind of vacuum. They are not for two reasons, as was made very clear in December when we moved on to phase 2, the critical component of the negotiations when the very issues that so concern the noble Baroness will be the subject of discussion. It is not as though there is no engagement with the financial services industry; there is very close engagement. As my noble friend Lord Lamont made clear, this is a sensitive time in the discussions. It would be completely inappropriate to show hands and declare positions. The financial services industry is aware of what the Government seek in terms of their objectives. We take comfort from the position of London in the global financial world. The Z/Yen consultancy declared in September that London is the leading financial centre, ahead of New York which is second, Hong Kong, third and Singapore, fourth. Yes, we know what people in the financial services industry feel. Yes, we are cognisant of that and, yes, we are doing everything we can to robustly represent the best interests of the financial services industry.

[Baroness Liddell of Coatdyke (Lab)]

My Lords, I should not need to remind the noble Baroness that financial services in this country go further than the City of—

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[Baroness Goldie]

Yes. I thank my noble friend for that intervention. As I have already said, this will involve detailed technical talks—there is nothing straightforward or simple about this. I entirely agree with him that that it would be exceedingly dangerous to yield to the temptation, to which some seem to be in danger of yielding, that we can reduce this to simplistic terms. These are challenging and complex issues and they should be addressed appropriately.

[Baroness Liddell of Coatdyke]

My Lords, is it not interesting that we have heard three Conservative speakers, including the noble Baroness from the Dispatch Box, obviously thinking that our negotiators are amateurs and that they cannot conduct a negotiation when the broad outlines are set out before them? I served under the chairmanship of the noble Baroness, Lady Falkner of Margravine, on the Select Committee, where it was made plain to us by 40 witnesses, time and again, that they need certainty. Ideally they wanted certainty by the end of 2017; they are now begging for it before the end of the first quarter in March. I should not need to remind the Minister that the City of London is only a small part of the United Kingdom’s financial services industry. A very large part of it is in Scotland, Bristol and Leeds. These jobs are at risk, and this is not the time to play games.

[Baroness Goldie]

I respect the noble Baroness and understand that she is a significant contributor to the proceedings of this House, but she is a little harsh in her terminology. There is no question of the Government playing games, and that is recognised in Brussels and by the EU. It is recognised that these are complex, challenging negotiations and that by their very nature a degree of sensitivity surrounds them, and that involves also the need to observe a degree of confidentiality. The financial services industry is aware of the Government’s broad objectives in these negotiations; as I said last week, senior representatives of the industry met with the Prime Minister, the Chancellor and my honourable friend Robin Walker. So there is clarity on the part of the industry as to what the Government wish to try to achieve. When the Government think it appropriate, as my honourable friend Robin Walker said in the other place, we can consider how to set out our position.