Oral Answers to Questions

Richard Graham Excerpts

Tuesday 15th March 2016 Commons Chamber

[Mr Vaizey]

Failure—[Interruption.] As usual, my hon. Friends have anticipated my answer: there, on the Labour Benches, is the picture of failure. We have had to write off £50 million from the failed Labour scheme to deliver broadband in South Yorkshire. If a Labour Government had been elected, they would be two years behind us in the roll-out of superfast broadband; they had a target of 2017 to get to 90%—we have already reached it.

[Richard Graham (Gloucester) (Con)]

5. What estimate he has made of the UK’s balance of trade in services.

[The Secretary of State for Business, Innovation and Skills and President of the Board of Trade (Sajid Javid)]

The balance of trade in services has increased from a surplus of £54.3 billion in 2010 to a surplus of £88.7 billion in 2015.

[Richard Graham]

The Secretary of State’s answer highlights the fact that, while exports in goods are vital, especially to manufacturing cities such as Gloucester, our surplus in services might be more vulnerable if we leave Europe. What assessment has he made of sectors such as insurance and investment managers, whose businesses are passported across Europe, and other service sectors, such as advertisers, accountants, animators, designers and film producers?

[Sajid Javid]

My hon. Friend speaks with experience: he is a distinguished former pension fund manager—a very important service that the UK industry provides. He is right that the EU’s financial services passport means that financial services firms authorised in the UK can provide their services across the EU, without the need for further authorisations. That is, of course, a significant benefit that they receive. Services represent almost 80% of our economy, and access to the world’s largest single market helps them to create thousands of British jobs.