Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what discussions he has had with the Chancellor of the Exchequer on the potential cost to the public purse of the UK not agreeing a deal with the EU.
Answered by Suella Braverman
We do not want or expect a no deal outcome. However, a responsible government should prepare for all potential outcomes, including the unlikely scenario in which no mutually satisfactory agreement can be reached.
The Government is undertaking a wide range of analysis and preparatory work, across a range of scenarios, that will contribute to our exit negotiations with the EU, to define our future partnership with the EU, and to inform our understanding of how EU exit will affect the UK’s domestic policies and frameworks.
DExEU is working with all departments, including HM Treasury, to make sure that our preparations for exit and our new partnership with the EU are on track.
We have been clear the Government will not provide an ongoing commentary on internal analytical work.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, whether he is taking steps with other Departments to make preparations in the event of the UK not agreeing a deal with the EU.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
It is in everyone’s interests to secure a good deal for both sides. We think that is by far and away the highest probability. However, as a responsible Government, we are preparing for all potential outcomes from negotiations with the EU, including for the unlikely scenario in which no mutually satisfactory agreement can be reached. Every Government department has drawn up well developed and flexible plans for this scenario.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, how much money his Department has spent on preparations in the event of the UK not agreeing a deal with the EU.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
DExEU does not classify or categorise budgets and expenditure by potential negotiation outcome.
The 16-17 Annual Reports and Accounts covers expenditure and budgets since the Department’s inception see link below. The expenditure of 17-18 will be published in the 17-18 Annual Reports and Accounts in the summer 2018.
https://www.gov.uk/government/publications/annual-report-and-accounts-2016-17
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, how much money his Department plans to spend on preparations in the event of the UK not agreeing a deal with the EU until the end of the transition period.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
DExEU does not classify or categorise budgets and expenditure by potential negotiation outcome.
Budgets from April 2017 to March 2020 are provided below and are in line with funding agreed by Parliament in the Mains Estimate. Budgets during the transition period not covered below are subject to the next spending review in 2019.
BUDGETS | 2017-18 | 2018-19 | 2019-20 |
TOTAL | £80,197k | £95,985k | £94,780k |
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, how many members of staff are employed in his Department to work on preparations in the event of the UK not agreeing a deal with the EU by job grade.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
All departments are equipping themselves with the resources they need to get the best deal for the UK, and to prepare for all possible outcomes of negotiations. The Department for Exiting the European Union now has over 650 staff based in the UK plus the expertise of over 120 officials in Brussels.
The Department is continuing to recruit the brightest and the best. The Department for Exiting the European Union is responsible for overseeing negotiations to leave the EU and establishing the future relationship between the UK and EU. As such all staff in the Department are dedicated to planning, delivering or supporting the work on EU exit.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what the implications are for his negotiations with the EU of the comments of 5 June 2018 by the chief executive of HMRC to the Treasury Select Committee on the cost to UK businesses of leaving with the EU without a deal.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
It is in everyone’s interests to secure a good deal for both sides, and we are confident that good deal is clearer and closer than ever since we agreed the terms of an implementation period with the EU.
While we think that is by far and away the highest probability, as a responsible government we have a duty to plan for a circumstance whereby we leave without a negotiated agreement. HMRC are on course to deliver functioning customs, VAT, and excise regimes the UK will need once it leaves the EU in any scenario. This will enable trade to flow, HMRC to collect revenues and the UK to have a secure border. DExEU continues to work with HMRC to understand the impacts of a range of future customs relationships with the EU.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what discussions he has had with the Secretary of State for Business, Energy and Industrial Strategy on the potential effect of the UK not agreeing a deal with the EU on the automotive industry.
Answered by Steve Baker - Minister of State (Northern Ireland Office)
The Secretary of State has regular discussions with his Cabinet colleagues on a range of issues.
The UK’s automotive industry is world leading. Global demand for UK designed, engineered, and manufactured vehicles is strong. Both the UK and the EU share a strong commercial interest in preserving integrated supply chains, including those that support just-in-time production across the automotive sector.
We are determined to ensure that the UK continues to be one of the most competitive locations in the world for automotive and other advanced manufacturing.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what plans ministers in his Department have to visit ports in Wales.
Answered by Suella Braverman
A number of UK Government ministers, including the Secretary of State for Wales and the Minister for Security, have visited Holyhead to discuss the impact of EU exit on the port. UK Government officials continue to work with port operators, key stakeholders, and the Welsh Government, to ensure that traffic continues to flow freely at ports in Wales once the UK has left the EU.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what the options for an agreement on the terms for the UK's financial services industry after the end of the transition period are.
Answered by Robin Walker
Earlier this year, the Prime Minister set out the UK’s vision for its future economic partnership with the EU at Mansion House and the Chancellor detailed how this would work for financial services during a speech at HSBC.
We will be seeking a bold and ambitious free trade agreement between the UK and the EU. Such a deal will be of greater scope and ambition than any such agreement before it, so that it covers sectors crucial to our linked economies such as financial services. This will require detailed technical talks, but as the UK is an existing EU member state, both sides have regulatory frameworks and standards that already match, with full alignment on Day One of our exit.
As the Prime Minister set out, we will not be seeking passporting, because we understand this is intrinsic to the single market of which we would no longer be member. Also, the Chancellor has been clear that a deal based on the EU’s existing third-country equivalence regimes would be inadequate for the scale and complexity of UK-EU trade.
Instead, given the highly regulated nature of financial services, and our shared desire to manage financial stability risks, we will need a collaborative, objective framework that is reciprocal, mutually agreed, and permanent and therefore reliable for business.
The Government has said that the principle of mutual recognition and reciprocal regulatory equivalence, provided it is objectively assessed, with proper governance structures, dispute resolution mechanisms, and sensible notice periods for market participants, could provide an effective basis for such a partnership.
Asked by: Hywel Williams (Plaid Cymru - Arfon)
Question to the Department for Exiting the European Union :
To ask the Secretary of State for Exiting the European Union, what assessment his Department has made of the (a) short-term and (b) long-term risks to the UK financial services after the UK leaves the EU.
Answered by Suella Braverman
The Government is undertaking a wide range of ongoing analysis in support of our EU exit negotiations and preparations.
We have been clear in our ambition to agree a broad and comprehensive trade agreement with the EU, which should cover financial services and protect the role of the City of London as a top global financial centre in the future. In March this year, London was named once again as the world’s leading financial centre; we are committed to maintaining that position.
We have also been clear that a good deal on financial services is in the mutual interest of the UK and the EU. Firms across the EU will continue to want to access the unrivalled depth and breadth of London’s capital markets.
We will also seek to establish strong cooperative oversight arrangements with the EU and will continue to support and implement international standards to continue to safely serve the UK, European and global economy. It is in both sides’ interests to ensure that we agree oversight arrangements that promote the maintenance of financial stability.
The Government has previously confirmed that when we bring forward the vote on the final deal, we will ensure that Parliament is presented with the appropriate analysis to make an informed decision – in relation to all sectors of the economy, including financial services.