EU-UK Trade and Cooperation Agreement

Lord Hunt of Wirral Excerpts

Friday 8th January 2021 Lords Chamber

[Lord Hunt of Wirral (Con)]

My Lords, I draw attention to my entry in the register. I share the general relief that a deal was achieved, but the agreement does not cover services.

I am proud of the UK insurance and long-term savings industry—the fourth largest in the world—and there are three connected matters that I would like to raise. The first is the so-called green card. We assume that the UK will remain in the scheme, but early confirmation is vital. Secondly, it is high time that the Government reintroduced an international competitiveness duty into the UK’s regulatory framework.

Thirdly, on equivalence, the UK has granted Solvency II equivalence to EU insurers and reinsurers under all three tests, and we must now seek reciprocal recognition from the EU of the UK’s prudential regime. Equivalence would offer much-needed stability, but I believe that we must fashion far bolder plans for the future. Our skill at brokering insurance is nonpareil, but it is striking how few major international firms have even considered locating their headquarters in the UK. To establish the UK as the leader in financial services, we need a comprehensive strategy with support from the very top to make this an attractive place to be. This requires a proportionate and effective regulatory regime, but it is also about schools, neighbourhoods and the sectors that are being cruelly punished by the pandemic—notably, our hospitality and creative sectors. We must press for what my noble friend the Minister mentioned earlier—reciprocal, visa-free travel arrangements for touring performers and crews.

So, the withdrawal agreement is wholly welcome but we must now move swiftly from the era of mitigation to an era of opportunity.