Draft Amendments of the Law (Resolution of Silicon Valley Bank UK Limited) (No. 2) Order 2023

Tulip Siddiq Excerpts

Wednesday 7th June 2023 General Committees

[Tulip Siddiq (Hampstead and Kilburn) (Lab)]

It is a pleasure to serve with you in the Chair, Ms McVey. I thank the Minister and his team for briefing me ahead of today’s debate. We welcome the quick work done by the Treasury, the Bank of England and regulators to secure the HSBC rescue deal for the UK arm of Silicon Valley Bank. SVB UK serves a high concentration of life sciences and tech companies in this country, and those firms play an indispensable role in driving growth and innovation across the economy. We recognise that granting an exemption to the ringfencing regime for HSBC was necessary to guarantee the sale of SVB UK in exceptional circumstances. That is why the Labour party will support the draft order.

I just want to ask the Minister a few questions. First, has he considered whether maintaining a special exemption for HSBC in the future represents the best long-term solution? Can he assure me that he and his officials, alongside the Bank of England, have considered all the alternative options now that the collapse of SVB UK has been averted? I recognise the specific circumstances of SVB UK, but does he agree that ringfencing reforms were introduced for good reasons, to protect savers and taxpayers from a banking crisis? Can the Minister reassure me that, beyond SVB UK, his Government are committed to the integrity of the ringfencing regime, and that regulation must prioritise the safety and soundness of our banks?