Oral Answers to Questions

Justin Madders Excerpts

Thursday 1st October 2020 Commons Chamber

[Harriett Baldwin (West Worcestershire) (Con)]

What recent progress has been made on negotiations on the UK’s future relationship with the EU in relation to financial services.

[Justin Madders (Ellesmere Port and Neston) (Lab)]

What recent assessment he has made of the progress of the UK’s negotiations with the EU.

[The Chancellor of the Duchy of Lancaster and Minister for the Cabinet Office (Michael Gove)]

This week the ninth round of negotiations with the European Union is taking place. Since the last round of negotiations, as set out in the terms of reference, UK negotiators have continued informal discussions with the Commission in both Brussels and London. Differences, of course, still remain, but we are committed to working hard to reach agreement within the timeframe that the Prime Minister has set out. On financial services, we are still seeking to provide a predictable, transparent and business-friendly environment for firms that undertake cross-border business.

--- Later in debate ---

[Michael Gove]

I am grateful to my hon. Friend for raising that question, as a former Treasury Minister and a very effective advocate for one of the most successful parts of our economy. The granting of equivalence is an autonomous process within the European Union, but we are confident that the high standards of financial services regulation in this country command confidence not only in the EU but elsewhere. It is also the case that it is in the interests of EU citizens and companies that they have access to the broad and deep capital markets in London and across the United Kingdom.

[Justin Madders]

Vauxhall Motors in my constituency exports the majority of its vehicles to the EU, but at the moment it does not know where it stands on rules of origin, and it does not look like that will be a priority in the next round of negotiations. Is it not time that the Government actually supported the UK automotive sector and made that a big priority in the next round of negotiations?

[Michael Gove]

I am grateful to the hon. Gentleman for raising that question. If I may gently correct him, we do put the interests of the automotive sector front and centre. When it comes to rules of origin, diagonal cumulation or seeking a tariff-free and quota-free deal, that is at the heart of our negotiating approach, and the interests of his constituents are at the heart of the approach that Lord Frost is taking.