Brexit: Financial Services Sector

Baroness Falkner of Margravine Excerpts

Tuesday 23rd January 2018 Lords Chamber

Asked by

[Baroness Falkner of Margravine]

To ask Her Majesty’s Government whether they still intend to publish a position paper setting out their priorities and preferred trading relationship for the financial services sector after the United Kingdom’s withdrawal from the EU, and if so when.

[Baroness Falkner of Margravine (LD)]

My Lords, I beg leave to ask a Question of which I have given private notice. In doing so, I declare an interest as chairman of your Lordships’ EU Financial Affairs Sub-Committee.

[Baroness Goldie (Con)]

My Lords, the Government have set out their objectives for financial services. The Secretary of State and the Chancellor have each done so in recent speeches. We are engaging extensively with both industry and EU partners to hear their views and set out our arguments. In any negotiation there is a careful judgment and a delicate balance about when and how to set things out in public, and we will keep under review the best way of doing this.

[Baroness Falkner of Margravine]

The noble Baroness will be aware that I have been engaged in correspondence with the Chancellor, on behalf of the sub-committee, about the need for a transition period. The Government have, indeed, set out their position in that regard. What is lacking is a position paper telling the financial services sector what it should expect to get at the end of the transition period; in other words, what it should implement and plan for when the transition period is over. There are more than 1 million jobs at stake in this industry, which has huge strategic importance for the United Kingdom. Seven position papers have been published so far, but not the long-promised one on the financial services sector. When do the Government expect to do so?

[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.