No-deal Brexit: Short Positions against the Pound

John Bercow Excerpts

Monday 30th September 2019 Commons Chamber

[David Linden (Glasgow East) (SNP)]

On a point of order, Mr Speaker. We cannot hear what is being said.

[Mr Speaker]

I am grateful to the hon. Gentleman. My advice to the Minister is simply to project. I know he will do so unfailingly.

[Mr Clarke]

I will do my best, Mr Speaker. One would not want to be accused of being unduly meek in the circumstances.

We accept the market-based price of sterling and do not have a view on what level this should be. Were the Government to speculate on the value of sterling, it could hurt confidence in our macroeconomic framework. However, as the price of sterling fluctuates in the normal way, Her Majesty’s Treasury believes that investors should be entitled to hedge, including by short selling. The foreign exchange market is a global market, and it is essential that we work with other jurisdictions to ensure a consistent international approach to the oversight of these markets. That is why the UK has supported the work of the Bank for International Settlements to create a single global foreign exchange code, and work is ongoing to ensure that it embeds common standards of good practice in this area.

The United Kingdom will be leaving the European Union on 31 October, whatever the circumstances. We must respect the referendum result. We would prefer to leave with a deal, and we will work in an energetic and determined way to get that better deal done.

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[Several hon. Members rose—]

[Mr Speaker]

I gently remind the House that the thrust of the urgent question relates to short positions being taken against the pound. This is not a general, Second Reading-style debate on the merits or demerits of a no-deal Brexit, of which the House has treated before and doubtless will do so again. It is on the specific matter to which I have just referred, and I feel sure that our hon. Friend from the west country is a noted authority on this matter, on which he is about to expatiate.

[Michael Tomlinson (Mid Dorset and North Poole) (Con)]

Thank you Mr Speaker, you are very kind. It is wonderful to see the Minister in his place, oozing calm and authority, in sharp contrast to the stoking of fears and division on the Opposition Benches. We have just heard about the risk to the economy, but the real risk to the economy is not Brexit nor yet a no-deal Brexit. The real risk is letting the shadow Chancellor anywhere near No. 11 or the Treasury.

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[Sir Mike Penning]

On a point of order, Mr Speaker.

[Mr Speaker]

Points of order come later. We look forward to them with eager anticipation from the lips of the right hon. Gentleman.