Oral Answers to Questions

John Glen Excerpts

Tuesday 26th January 2021 Commons Chamber

[Carolyn Harris (Swansea East) (Lab)]

What assessment he has made of the potential merits of providing financial support to wholesale food service sector businesses affected by covid-19 restrictions.

[The Economic Secretary to the Treasury (John Glen)]

Throughout the covid crisis, the Government have sought to protect people’s jobs and livelihoods, and support businesses and public services across the UK. We recognise that food and drink wholesalers have been severely impacted by the necessary action we have taken to control the virus, but those businesses have been eligible for a number of our economic support schemes, including the job retention scheme, VAT deferral and bounce back loans.

[Carolyn Harris [V]]

Food service wholesalers have again seen their trade drop by 95% with hospitality businesses closing, yet they continue to supply our hospitals, schools, care homes and prisons at a financial loss. Many now are on the brink of collapse. What more are the Government going to do to help the industry, which is suffering a double whammy of lost stock and ongoing fixed costs?

[John Glen]

I thank the hon. Lady for her question, and, indeed, I met representatives of the sector in my constituency a few weeks ago. The Treasury is in regular discussion with the Department for Environment, Food and Rural Affairs and they are assessing the systemic risks to the food supply chain of the fulfilment of those public sector contracts to schools, hospitals and prisons. We keep these matters under close review, but at the moment there is no threat to those supply chains and, as I referenced, the options that are available to those firms continue to be available.

[Chris Bryant (Rhondda) (Lab)]

What discussions he has had with (a) Cabinet colleagues and (b) the Coal Authority on funding for ensuring the safety and stability of disused coal tips.

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[Stephen Hammond (Wimbledon) (Con)]

What discussions he has had with his EU counterparts on equivalence recognition for financial services.

[The Economic Secretary to the Treasury (John Glen)]

Equivalence is an autonomous technical process that each side is undertaking separately. Officials have had a number of meetings with their counterparts in the Commission over the past 12 months to discuss each other’s processes, and we remain open and committed to continuing dialogue with the EU about its intentions for equivalence.

[Stephen Hammond [V]]

I thank my hon. Friend for that answer.  Clearly, it would be disappointing if the EU could not follow the UK’s offer on equivalence, given the relative starting positions. Will my hon. Friend comment on the Government’s ambitions with regard to mutual recognition of professional qualifications? What are those ambitions and does he hope that they will be achieved by the signing of the memorandum in March?

[John Glen]

My hon. Friend has a lot of expertise in this area. He will know that, alongside the trade and co-operation agreement, we had a joint declaration to establish a structured regulatory co-operation for financial services and to discuss a whole range of matters around equivalence determinations going forward. The memorandum of understanding will be agreed in discussions between the EU and UK by March 2021. That will establish a framework for that co-operation. It would not be appropriate for me to give a running commentary on that, but the plans will come to fruition over the coming weeks.

[Mr Pat McFadden (Wolverhampton South East) (Lab) [V]]

The Brexit deal was, in effect, a no-deal outcome for financial services. Already some trade has moved, and there is big uncertainty hanging over access to European markets for this vital UK sector. Can the Minister confirm that it is in fact a Government negotiating aim to secure equivalence recognition for UK financial services in the memorandum of understanding being discussed between now and the end of March?

[John Glen]

To clarify for the right hon. Gentleman, the equivalence granting process is an autonomous, separate process from the MOU discussion. The MOU is about a framework to evaluate the future direction of financial services across the EU and UK. I remain very ambitious for the financial services sector. The Chancellor and I are continuing to have a dialogue—with roundtables with representatives of the sector this week and next week, as well as one-to-one meetings—to ensure that we listen to the sector, and respond appropriately and ambitiously for the future.

[Paul Blomfield (Sheffield Central) (Lab)]

What assessment the Government have made of the potential economic effect of the UK-EU trade and co-operation agreement on each region of the UK.

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[Ian Levy (Blyth Valley) (Con) [V]]

The Eat Out to Help Out scheme was seen by many in the hospitality industry as a lifeline for the survival of their business after the lifting of restrictions last summer. Will my hon. Friend assure me that his Department will carefully consider reinstating the scheme or something similar once we come out of lockdown?

[The Economic Secretary to the Treasury (John Glen)]

I thank my hon. Friend for his question. Across the pandemic, the Government have created a number of innovative responses, like Eat out to Help Out. We will continue to examine very carefully what package of measures we need to intervene with, and the Chancellor has indicated that he will be coming forward at the Budget with an update to the House on that package in due course.

[James Sunderland (Bracknell) (Con)]

Given the current imperative to forge new trade deals worldwide, and also to make the new EU trade deal work, what incentives are being considered by the Treasury to both attract new companies to the UK and retain those that are already here?