Question to the HM Treasury:

To ask Her Majesty's Government what assessment they have made of reports from the Bank of England and European Central Bank that there may be significant market volatility in the event of a disorderly Brexit.

Leaving the EU with a deal remains the Government’s top priority. An Implementation Period is the most effective approach to ensuring a smooth and orderly exit from the EU.

The Government has taken action to minimise disruption for UK households and businesses regardless of the outcome, including by introducing temporary regimes for EEA firms operating in the UK.

As the FPC set out in its latest Financial Policy Summary, the core of the UK’s financial system is resilient to, and prepared for, the wide range of risks it could face, including a disorderly Brexit. And while the FPC has noted that significant market volatility is to be expected in a disorderly Brexit, it has also noted that markets have proved able to function effectively through volatile periods. Major UK banks also are also able to withstand severe market disruption and, as a further prudent precaution, the Bank of England has operations in place to lend in all major currencies.