Oral Answers to Questions

Philip Boswell Excerpts

Tuesday 19th July 2016 Commons Chamber

The Chancellor of the Exchequer was asked—

[Philip Boswell (Coatbridge, Chryston and Bellshill) (SNP)]

1. What assessment he has made of the (a) extent of and (b) economic effect of assets and capital being moved out of the UK as a result of the outcome of the EU referendum.

[Owen Thompson (Midlothian) (SNP)]

2. What steps he is taking to update the Government's long-term economic plan in response to the outcome of the EU referendum.

--- Later in debate ---

[The Chancellor of the Exchequer (Mr Philip Hammond)]

While it is clear that the referendum decision represents a shock to the UK economy, thanks to the actions taken over the past six years by my predecessor, the economy is well placed to respond. I will work closely with the Bank of England to provide immediate stability and to maintain confidence in the fundamental health of the UK economy as we prepare for the autumn statement. As further post-referendum economic data are published, the economy’s short-term response to the Brexit decision will become clearer. If further measures are required, they will be announced in the autumn statement.

[Philip Boswell]

Given colleagues’ anecdotal evidence of capital flight, the recent vote to leave the EU has plunged the economy into volatility and uncertainty. The Conservative Government have been slow to act and have yet to provide an economic strategy, so will the Chancellor tell the people of the UK when they will get an insight into the scale of capital flight following the Brexit vote?

[Mr Hammond]

The hon. Gentleman is right to say that the shock of the exit vote at the referendum has created short-term turbulence in the UK economy, but we are well placed to manage it. In answer to his question about data, a series of data publications during the late summer and autumn will inform a proper response at the autumn statement.