Oral Answers to Questions

Matthew Pennycook Excerpts

Thursday 27th April 2017 Commons Chamber

[Mr Walker]

My hon. Friend is absolutely right for drawing attention both to the importance of financial services across the whole of the UK and to the fact that this is about the mutual interests of the UK and the EU. We want a deal that works for both, and access to the global leading financial markets in London will be as important for the other side in these negotiations as it is for us.

[Matthew Pennycook (Greenwich and Woolwich) (Lab)]

Last month, the Secretary of State confirmed to the Brexit Select Committee that exiting the European Union on World Trade Organisation terms would mean an end to passporting rights. Does the Minister agree that that would be catastrophic for our financial services sector and all those who work in it? If so, does he agree that no deal is not a viable option for the financial services sector?

[Mr Walker]

As a priority, we are pursuing the most ambitious trade agreement that has ever been achieved with the European Union. Its scope and ambition should be greater than that of any agreement before it. The financial services market access—access for European firms to the UK and access for UK firms to Europe—is hugely important. That is what we are focused on achieving. Let me say to the hon. Gentleman that the position of his party that any deal is better than no deal is an absurdity when it comes to defending the national interests of this country. We need to get the right deal and to be able to say to the other side that if they do not offer us the right deal the UK will manage and take the right steps to protect itself. Of course our focus should be on getting the best deal.

[Matthew Pennycook]

The latest draft EU negotiating guidelines discussed on Monday suggest that financial services will be separated from any agreement on our future trade deal. If the Government cannot secure the safety and certainty of the financial services sector as part of any future agreement, what is their back-up plan?

[Mr Walker]

I say gently to the hon. Gentleman that we do not write the guidelines, but we recognise that financial services will be part of a comprehensive deal. We have talked about a comprehensive free trade agreement, and it certainly has not been ruled out. What the EU has said is that it does not want to do separate sectoral deals—well, actually, nor do we. We want the most comprehensive trade agreement available and we think that that should include services, including financial services.