Brexit: Financial Services Sector

Baroness Hayter of Kentish Town Excerpts

Tuesday 23rd January 2018 Lords Chamber

[Baroness Goldie]

I have to correct a misapprehension on the part of the noble Baroness. She will be aware of the reply that my honourable friend the Minister, Robin Walker, gave to the other place in November. He made it clear that there was extensive engagement with a number of sectors. There had been numerous round-table and bilateral meetings. In particular, he said that, at that point, there was no position paper and that we shall continue to review the situation to determine how best to set out our position, which we will do as appropriate. That continues to be the Government’s position.

[Baroness Hayter of Kentish Town (Lab)]

My Lords, at the weekend the noble Lord, Lord Bridges, wrote that if we are not careful and do not know where we are going, the transition will be a gangplank leading to nowhere. It is over a year since the noble Baroness’s report on the financial services sector and Brexit was produced. We have no clear view of what the Government think. Is it that they do not know, that they dare not tell, or is it, as Nicky Morgan suggests, that they are not up to the task?

[Baroness Goldie]

The noble Baroness’s criticism might have more authority if it did not come from the Benches opposite, where the Labour Party’s position on Europe can only be described as shambolic, and that is a euphemism. I remind the noble Baroness of precisely what has been happening. As I said, there has been extensive engagement and consultation and we are seeking a bold and ambitious free trade agreement between the UK and the EU. In so far as the financial services industry is concerned, this will require detailed technical talks, as she is no doubt well aware. However, the UK is an existing EU member state so we have regulatory frameworks on both sides and we have standards that already match. As recently as last week, the Prime Minister, the Chancellor and my honourable friend Mr Robin Walker met senior representatives of the financial services industry to engage on exit issues, so there is an ongoing dialogue. This is a delicate and sensitive time and the Government must be the arbiter of when it is appropriate to declare their position in particular areas.