Oral Answers to Questions

Debate between Jonathan Reynolds and Elizabeth Truss

Tuesday 3rd July 2018 Commons Chamber

[Elizabeth Truss]

The financial services industry is a very important industry for the whole UK and we want it to do as well as possible, which is why we are working on getting the best possible deal. It is in the interests of EU countries that rely heavily on UK financial services to get a deal that suits both sides.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

According to EY’s recently released Brexit Tracker, a third of all financial services companies have confirmed that they will move staff or operations outside the United Kingdom. Most are going to Dublin, Frankfurt and Luxembourg, and they are going because this Government cannot give them the basic assurances for which they, and we, have been asking for 18 months. After eight failed years of Conservative government, we simply cannot afford this. What are the Government going to do to stop it getting any worse?

[Elizabeth Truss]

I am amazed that the hon. Gentleman did not mention the fact that the City has yet again been rated the top financial centre in the world. We hear nothing but doom and gloom from the Labour party about the future of our economy. If the hon. Gentleman thinks that the solution to our problems is calling business the enemy and overthrowing capitalism, he is seriously mistaken.

Oral Answers to Questions

Debate between Jonathan Reynolds and Elizabeth Truss

Tuesday 17th April 2018 Commons Chamber

[Elizabeth Truss]

We have made huge progress in the European negotiations. We are seeing business confidence increasing and investment increasing, and by this autumn we should have agreed a clear framework with the EU so that businesses have certainty about future investment.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

The UK’s economic growth in the final quarter of 2017 was the weakest of any economy in the G7, and the OBR is forecasting that the UK is on course for our worst period of economic growth since the end of the second world war. However, none of these already dire forecasts factors in a no-deal Brexit, which would have a severe impact on jobs, growth and tax revenues. We know the Chancellor knows this; indeed, he has said so publicly. The question is: why are his colleagues not listening to him?

[Elizabeth Truss]

It is very important that in the negotiations with the European Union we always keep the option of no deal on the table; otherwise, we will not get the best possible deal. But we are very confident of achieving a good deal. Why is the hon. Gentleman not welcoming the fantastic economic news we have had this morning: the lowest unemployment—again—since 1975, and wages up by 2.8%? It seems to me that there are an awful lot of Eeyores on the Opposition Benches.

Exiting the EU: Costs

Debate between Jonathan Reynolds and Elizabeth Truss

Wednesday 29th November 2017 Commons Chamber

[Elizabeth Truss]

As the Prime Minister laid out in her Florence speech, we do want to abide by the commitments we made during our period of membership, and we also want to see progress on securing a deal. My right hon. and learned Friend is right that any settlement that we seek to achieve has to be contingent on getting a suitable outcome from the negotiations, as has been outlined by the Prime Minister, because we want to ensure that any money spent is value for money for the British taxpayer.

[Jonathan Reynolds (Stalybridge and Hyde) (Lab/Co-op)]

I thank my hon. Friend the Member for Nottingham East (Mr Leslie) for raising this critical question.

As we all know, settling this issue is vital to continuing to the next part of the negotiations. Given that progress has been so much slower than we would have hoped, the Opposition support efforts to resolve this part of the negotiations as soon as is feasible, so that we can start to make progress to end the uncertainty that is impacting on jobs and the economy.

The financial settlement with the EU must meet our international obligations while delivering a fair deal for British taxpayers. The UK is a responsible country and there is no mileage in our refusing to meet our obligations. If we are to negotiate a comprehensive new trade agreement with the European Union, which we will need for future jobs and prosperity, we must be seen as a country that can be trusted to comply with the deals that we reach.

Given our long-standing membership of the European Union, the calculation will understandably be complex. Given that this is a sensitive part of the negotiations, we appreciate that the Government cannot announce a figure publicly at this stage, but they must be transparent about the process, especially once an understanding has been reached with our EU partners. That is why we have tabled an amendment to the European Union (Withdrawal) Bill that calls for any financial settlement to be assessed by the Office for Budget Responsibility and the National Audit Office, and for Parliament to have the chance to scrutinise it. The Government’s handling of the presentation of the impact assessment studies to Parliament has left a lot to be desired, so may I ask the Chief Secretary to the Treasury to promise that, in the interests of transparency and clarity, the Government will support that amendment?

[Elizabeth Truss]

I thank the hon. Gentleman for his supportive comments. I am glad that he agrees with the Government’s strategy. The next step will be making sure that his Back-Bench colleagues also agree with his strategy. He is absolutely right that we should not reveal the details of negotiations while they are ongoing. However, the Opposition’s approach of saying that any deal is better than no deal is not the best way of securing a deal. Although our preferred option is an implementation period followed by a strong agreement, we are preparing for all eventualities, which is why we are putting in £3 billion. I suggest that the Opposition should also support that very responsible approach.