Brexit: Positions on the Pound

Baroness Kramer Excerpts

Monday 30th September 2019 Lords Chamber

[Lord Callanan]

I am tempted to reply that if I knew how currencies were going to move, I would be betting on the exchanges myself, but of course I do not because it is a floating market mechanism. The noble Lord is of course welcome to do so if he wishes.

[Baroness Kramer (LD)]

Perhaps the Minister can help us more on the conflict of interest issue. I am sure that he will confirm that there has been extensive short selling against the pound—that is not illegal—on scales that we have not seen before, and short selling against the shares of major companies in the UK. Does he not agree that there is short selling on the grounds that a no-deal Brexit will do so much damage to the UK economy that, by betting against Britain, some people stand in a position to make millions? Does he consider it to be a pure coincidence or one worth exploring that many of those short sellers—I think they take the name of “vultures” by their own choice—were also donors to Boris Johnson’s leadership campaign and are donors to the Tory party? Does that need examination?

[Lord Callanan]

I really did think that the noble Baroness was better than that, but obviously not. These instruments are not just a speculation tool. Companies can use shorting as a hedging tool to protect themselves from future fluctuations, it can be used by big multinationals and, as she will be well aware from her time in government, the existence of the financial markets in the City of London is of great benefit to the United Kingdom. We gain 11% of our tax revenues from those liberal markets and we should not do anything to damage those trades.