Oral Answers to Questions

Kerry McCarthy Excerpts

Thursday 2nd November 2017 Commons Chamber

[Mr Walker]

My hon. Friend draws attention to the huge importance of the global financial centre in London to the whole of Europe. The Government are well aware of the importance of financial services market access. Our access brings benefits to businesses and customers across the UK and Europe, and we are determined to maintain the City’s competitiveness now and into the future. That is why we are working closely with the Treasury to ensure that we have the strongest possible offer on reciprocal market access in this space.

[Kerry McCarthy (Bristol East) (Lab)]

But it is not just that the euro clearing houses deal with transactions worth €1 trillion a day; it is also the fact that 100,000 jobs in the financial sector could be at risk if Brussels decides that, because of systemic risk, the clearing houses have to move within the EU. May I urge the Minister to take this seriously and to enter into negotiations to ensure that we protect this vital industry?

[Mr Walker]

We absolutely do take this issue seriously. Neither the Council nor the European Parliament has yet reached a position on this proposal. Negotiations are ongoing, and the Council is still discussing the merits of location policy. The UK is very much involved in those discussions. As the hon. Lady knows, the Treasury leads on financial services, including ongoing business-as-usual EU negotiations, and this is an issue on which we continue to work with it very closely.