Brexit Negotiations and No Deal Contingency Planning

Robert Neill Excerpts

Tuesday 4th September 2018 Commons Chamber

[Dominic Raab]

We are absolutely clear that we want to ensure that we get a good deal for all quarters of the UK. I have been clear, and was again today, that a no deal scenario certainly has risks, which is why it is not our preferred outcome. Our overriding priority is a good deal for the UK and the EU, but we need to be prepared for all eventualities and to be able to manage the short-term disruption. Irrespective of the outcome of the negotiations, I am confident that Britain can go from strength to strength.

[Robert Neill (Bromley and Chislehurst) (Con)]

Eighty per cent. of the UK’s economy is services. Chequers of course does not deal with services, but it would at least buy time for a proper negotiation to achieve the Government’s plans, especially for financial services given the automatic loss of passporting rights if we leave without any interim arrangements. Has the Secretary of State quantified what the costs will be to the British financial services sector of leaving in a no deal scenario with the automatic loss of the passporting rights that allow British firms into the EU’s financial services market?

[Dominic Raab]

I understand my hon. Friend’s concerns. He will have seen the White Paper proposals on financial services, which pursue a building-up of the EU’s existing equivalence arrangements. We are confident that that will provide a good set of arrangements not just for the UK and our bankers and financial services providers but, critically, for the continental European economy, which is so dependent on it.