Oral Answers to Questions

Stephen Timms Excerpts

Tuesday 17th April 2018 Commons Chamber

[Mr Hammond]

My hon. Friend puts her finger on the significant structural challenge that we face. This country has a higher penetration of online retailing than any other major economy—we are at the cutting edge—but that, of course, has an impact on traditional retailing, and we have to expect that patterns of retailing will change. We have brought forward by a year the switch to three-year business rates reviews, and we have introduced a package of £9 billion of business rates relief, but we will have to consider this major structural challenge over the coming years as a nation.

[Stephen Timms (East Ham) (Lab)]

T3. The European Commission has hinted that the UK may be given access to the European financial services market, but only on the basis of equivalence. Does the Chancellor support the preferable basis of mutual recognition for that future arrangement, and what prospect does he see of securing it?

[Mr Hammond]

As the right hon. Gentleman will well understand, I much prefer a system based on mutual recognition. There are problems with the EU’s equivalence regime: it is arbitrary, it is unilateral, and it can be withdrawn with zero notice. No one can operate a multitrillion-dollar business on the basis of such arbitrary arrangements. However, we are working with the Commission and key member states, and I am optimistic that we will reach a satisfactory solution.