Future UK-EU Relationship on Professional and Business Services (EU Committee Report)

Debate between Baroness Henig and Baroness Bottomley of Nettlestone

Thursday 22nd July 2021 Lords Chamber

[Baroness Bottomley of Nettlestone (Con)]

My Lords, I add my admiration for the noble Baroness and her excellent report. I am beginning to feel left out, having not been a member of the committee, since it is evident that it was an excellent process with some really important results. I am delighted that there has been such a tremendous rush to join this debate, even if not all noble Lords have shown up, because it is a demonstration of the really important part that businesses and professional services play in the United Kingdom.

When I was young, many years ago, I was told—the noble Lord, Lord McNally, will know more about it than me—that the trade unions for miners and steelworkers would go into No. 10 for beer and sandwiches. My aim and aspiration, when I was responsible for leisure and hospitality, was that there should be a CBI debate on leisure and hospitality—the industry and jobs of the future. But it is business and professional services that are now involved in so many jobs and businesses, and so many small businesses; two-thirds are not in London and the south-east but really across the economy.

I pay tribute to the many trade bodies that have worked so hard for business and professional services, but particularly to the Business Services Association and Mark Fox, who for 13 years has worked so hard with his small team to ensure that these aspects are fully considered. In business services, they include ICT, business process outsourcing, facilities management, construction and infrastructure services and managed public services. They point out that in today’s economy, many contracts span more than one category; they are together in the real economy, even if they are not always linked by statisticians. Of the services and projects provided by businesses large and small, 70% is business to business, with the remainder being provided in the public sector—that is before we get to the professional services that support them, which are equally vital to our economy and often dominate the debate.

The UK business services industry is globally acknowledged as being at the cutting edge of service transformation and technological creativity. For some parts of business services, such as business process outsourcing, exports are integral. To quote the committee’s report:

“The EU is the UK’s largest market for exports in professional and business services, accounting for 37% of professional and business services exports.”


The UK

“ran a trade surplus of £12.4 billion with the”

EU’s professional business services. It is a highly lucrative and important market, and one we have, rightly, to nurture.

I pay tribute to the Ministers, my noble friends Lord Grimstone and Lord Callanan, and the many officials in the Department for International Trade and BEIS who have worked so hard to work with industry and acted as a go-between. Although much progress has taken place, we appreciate that there are still some outstanding and tricky issues. We have talked about the creative industries and the recognition of qualifications.

What does the Minister see as the critical and exciting role of business and professional services in the green economy as we move towards COP 26? I believe that this will provide further jobs, opportunities and wealth creation.

[The Deputy Speaker (Baroness Henig) (Lab)]

The noble Lord, Lord Bilimoria, has withdrawn from this debate, so I call the noble Lord, Lord Bhatia.