Next Steps in Leaving the European Union

Chris Philp Excerpts

Monday 10th October 2016 Commons Chamber

[Mr Davis]

The Treasury has given underwriting guarantees, as it were, for the current round of applications, so that is not to be worried about. This country is a science superpower, so the idea that after our departure from the European Union funding will somehow dry up is for the birds—it is simply nonsense. I have had discussions with the presidents of some of the royal academies, and we will continue those discussions with the aim of ensuring that they do not feel at risk. Some of the comments we have got back indicate that the European Union rules on issues such as clinical research have not exactly been helpful to British science, so there will be an improvement, not just an underwriting guarantee.

[Chris Philp (Croydon South) (Con)]

Many City of London institutions rely on the financial services passport to do business across Europe. Some say that as many as 20% of their jobs depend on that access. The danger is that, as it would take a year or two to relocate staff, some may take action before the end of the two years. To encourage them to keep those jobs here in London, can the Secretary of State give an assurance that financial service passporting or some equivalent mutual recognition is his priority?

[Mr Davis]

My hon. Friend makes a good point; as there may be something like an 18-month lag, some people might try to pre-empt the decision and, rashly, move early. The Treasury has held a roundtable on this specific issue. It has looked very clearly at various mechanisms of mutual recognition as a fall-back on passporting. Somebody made the point earlier that we issue more passports than we seek. As a result, our negotiating leverage in this area is at least reasonable.