European Union (Withdrawal) Act

Debate between Lord Hammond of Runnymede and Robert Neill

Thursday 6th December 2018 Commons Chamber

[Mr Hammond]

Let me say this frankly to my hon. Friend: there is no deal that is negotiable that involves leaving the EU and maintaining the financial services passport. That is a fantasy world outcome. There will not be passporting. What we have negotiated with the European Union is an enhanced equivalence approach that will allow us to maintain our vital financial services networks with the European Union in the areas where there is significant financial services trade between us and to do so in a way that will provide the reassurance that commercial companies need in London to continue operating.

A mere equivalence finding is of no use to a company operating a book of derivatives worth several trillion dollars when there could be an abrupt ending of the equivalence arrangement unilaterally by one side. There has to be a more structured basis for that co-operation in the future. We have agreed that with the European Union, and I absolutely agree with my hon. Friend’s point that, even though we will not have direct influence over new European Union rules, we can have a significant influence over the shaping both of the global rules and, indeed, the European rules.

Over many decades of membership of the European Union, the UK has had a huge influence over the EU’s financial services regulatory environment. We have done that not through voting power, but through the skill, the diligence and the commitment of our civil service and industry teams who have engaged in Brussels and who have provided their expertise to try to shape the European Union’s financial services regulation in a way that is effective and that works for us all, and we will carry on doing so in the future.

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

I am very grateful to my right hon. Friend for giving way and I very much appreciate the realistic point that he makes about what is on offer to my constituents in the financial services sector. Does he agree that it is precisely because this is the best deal that we are likely to get and that it gets us into transition where these important technical matters can be resolved that it has been welcomed by all the representative bodies of the financial services sector across the country?

[Mr Hammond]

That is exactly right. It has been welcomed by all the major bodies. It has been welcomed by the City of London. First, this deal gives us the transition period, which is a vital respite for business in preparing for the future, and it gives us a commitment to a future deal that will protect our economy and, in particular, our financial services sector.

At the Budget in October, I made a Brexit prediction. I predicted that a deal that creates confidence in a smooth transition and a close future partnership will not only protect our jobs, businesses and prosperity in the long run, but deliver a short-term deal dividend for Britain. The Bank of England last week published its modelling of a range of scenarios to assess the potential impact as the economy makes the necessary adjustment to reflect the new trading relationship between the UK and the EU. The Bank estimated that a negotiated deal could boost British GDP by 1.75% in the short term, as businesses and consumers alike express their confidence in the future, while leaving the EU on WTO rules and without a transition period could cause a recession, with GDP reduced by up to 7.75% and unemployment rising to 7.5%. The Bank of England is clear: a no-deal exit would mean jobs lost, food prices up, house prices down and wage growth lower.

Businesses have made their views clear. The Federation of Small Businesses called this deal

“a welcome step back from the no deal cliff edge.”

The Institute of Directors warned that only 14% of its members

“would be ready to cope with a no deal outcome in March”.

The CBI has described no deal as a disaster for the economy.

This House has before it a deal that can deliver the certainty that will unlock the potential of our economy and assure Britain of the brighter future it craves. Let us not be the generation who have to explain to our children and grandchildren why we let that opportunity slip from our grasp. Let us choose now to move on to that brighter future, not to go back to square one with continuing uncertainty, division and disharmony.

As we make this decision and exercise our solemn duty in this Parliament in the interest of the nation, let us not forget the progress that we have made and what we would be putting at risk with no deal: eight straight years of growth; employment at a record high; 3.3 million more people in work; higher employment and lower unemployment in every region and every nation of the United Kingdom; wages growing at their fastest pace in nearly a decade; and the proportion of low-paid jobs at its lowest for at least 20 years. Britain is leading the world in breakthrough technologies—from biotech to fintech, and from robotics to genomics—and at the cutting edge of a technological revolution that will underpin our prosperity and success for decades to come, if we get Brexit right.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Robert Neill

Tuesday 3rd July 2018 Commons Chamber

[Mr Hammond]

The overwhelming majority of the over 1,000 new jobs a day that have been created since the 2010 general election have been conventional jobs; only a tiny fraction of people in the workforce are on zero-hours contracts—less than 2.8%. Zero-hour contracts do have a role to play, but the Government have taken action to make sure they are not abused, and we will continue to take action to make sure that the flexibilities that are essential to the operation of our labour market and the attraction of the UK for international investment are not abused.

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

19. Businesses in my constituency have been telling me that as we leave the EU they want to have the assurance and clarity of security of their supply chains, not to be burdened with undue regulation and paperwork in relation to customs, and in financial services both clarity and certainty of alignment and regulation; they also want the ability to fly in key personnel across our EU markets to advise clients. Does my right hon. Friend agree that their views should be treated with respect and seriousness?

[Mr Hammond]

Yes, the views of business, which is the great generator of employment, wealth and prosperity in our country, should always be taken very carefully into account. We should listen to what business is telling us and make sure that we deliver a Brexit that delivers on the needs of business.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Robert Neill

Tuesday 24th October 2017 Commons Chamber

[Mr Hammond]

The Government made commitments on the personal allowance and higher-rate threshold in their previous election manifesto. We reiterated them in the 2017 manifesto, and we remain committed to those policies. Of course, I will take into account all the representations I receive from right hon. and hon. Members, and I shall take the hon. Lady’s comments on the work allowance as such a representation.

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

2. Whether his Department has made an assessment of the potential merits of recommendations from the London Finance Commission on fiscal devolution for London.

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Robert Neill

Tuesday 28th February 2017 Commons Chamber

[Mr Hammond]

The right hon. Gentleman will have to wait until next week to find out what my proposals are, but let me be clear that we have no plans for further welfare reforms in this Parliament. However, the reforms that we have already legislated for must be delivered, and Parliament’s original intent in legislating for those reforms has to be ensured.

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

T3. In constituencies in London suburbs such as mine, ordinary family homes are caught by the upper levels of stamp duty land tax, and estate agents regularly tell me that that is creating cirrhosis in the market. If people are not moving at that level, people are not moving further down, meaning that others are unable to get on to the housing ladder. Is it not time to look again at the unintended consequences of the upper levels of that tax on home ownership and mobility?

Oral Answers to Questions

Debate between Lord Hammond of Runnymede and Robert Neill

Tuesday 12th July 2016 Commons Chamber

[Mr Philip Hammond]

As the hon. Gentleman and the House will know, we have been studying options relating to the British Indian Ocean Territory and the situation of the Chagos islanders. The current Prime Minister has taken a great interest in the issue, but it is clear that it will now fall to the new Prime Minister to make a decision.

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

The people of Gibraltar feel particularly concerned about pressure from Spain now that we are leaving the European Union. Will the Minister for Europe confirm that their Government will be fully involved in the negotiations, and does he agree that their economy could be given an immediate boost, first, by a free trade agreement between Gibraltar and the UK, and, secondly, by ruling out any redundancies in the civilian, locally employed Ministry of Defence force?

EU Membership: Economic Benefits

Debate between Lord Hammond of Runnymede and Robert Neill

Wednesday 15th June 2016 Commons Chamber

[Mr Hammond]

That question has never been effectively answered—how many jobs are those advocating Britain’s exit from the European Union prepared to sacrifice on the altar of their notion of sovereignty? We have never had a straight answer to that question. What we do have is a range of independent estimates of what that number would be if we voted to leave next Thursday. I shall come to that in a moment.

It is because of the potential for the UK to open up the services market in the European Union that the deal the Prime Minister negotiated in February is so important. We now have a clear political commitment from all 27 other EU member states, plus the Commission, to accelerate the development of that market. These are the sectors in which the UK leads in Europe, and in which an expansion of the single market will disproportionately benefit the United Kingdom over the years ahead.

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

Does my right hon. Friend recognise that that commitment to a proper completion of the single market in services, added to the completion of a capital markets union, places the United Kingdom in a unique position to develop its world-leading sector, and that it would be mad to walk away from that opportunity?

[Mr Hammond]

My hon. Friend is right. That is what I hear from many of my European colleagues: we are about to move from one phase of European Union development into a new phase that is hugely beneficial to the United Kingdom, yet we are talking about walking away from it. Our financial services industry alone currently contributes more than 7% of UK GDP and employs more than 1 million people, two thirds of them outside London, but there is not yet a single market for financial services across the EU. The potential is huge.

A fully functioning digital single marketplace could be worth as much as £330 billion a year to the EU economy, with the UK again set to benefit more than any other country, as the leading digital economy in Europe. By the way, it would be a huge boon for Britain’s digital-savvy consumers, who would be able to shop freely across the digital single marketplace. Individuals are already feeling the benefits of last year’s EU agreement, led by the UK, to end mobile roaming charges, which it is estimated will save UK consumers around £350 million a year, and for years we have all been enjoying the budget airline boom created by EU regulations.

European Union Referendum Bill

Debate between Lord Hammond of Runnymede and Robert Neill

Tuesday 9th June 2015 Commons Chamber

[Mr Hammond]

No. We made a proposal to the British people, it was put to the test in the general election and we have received an overwhelming mandate to progress. That is what we will do.

The Bill also sets out the entitlement to vote in the referendum. Since this is an issue of national importance, the parliamentary franchise is the right starting point. It means that British citizens in the UK or resident abroad for less than 15 years and resident Commonwealth and Irish citizens can take part. The Bill extends the franchise in two very limited respects: to Members of the other place who meet certain qualifications and to Commonwealth citizens resident in Gibraltar. Members of the other place cannot take part in elections to this House on the grounds that they are already represented in Parliament, but it is clearly right that the franchise should be extended to them in the referendum. Gibraltar will also be deeply affected by its outcome. It is part of the European Union and its economy is closely bound to its relationship with the EU. Of course, Gibraltar already takes part in elections to the European Parliament as part of the South West of England. During debates on the private Member’s Bill in the previous Parliament, there was cross-party support for Gibraltar’s inclusion. I hope that that will remain.

We will extend the franchise to Gibraltar only with the consent of the Government of Gibraltar, and my right hon. Friend the Minister for Europe has already agreed the principles for achieving that with the Chief Minister. Wherever possible, the Bill leaves it to the Gibraltar Parliament to make provision to implement the referendum in Gibraltar. The Government of Gibraltar intend to introduce their own referendum Bill, which will be complementary to the UK legislation.

Some will argue that we should extend the franchise further to 16 and 17-year-olds, perhaps, or even to citizens of other EU countries resident here. We do not agree. This is an issue of national importance about Britain’s relationship with the European Union and it is right that the Westminster parliamentary franchise should be the basis for consulting the British people. I concede that there are those in the House who will wish to debate whether that franchise itself should be extended to 16 and 17-year-olds, but the Government are not persuaded and that is a debate for another day. It would be wrong to include 16 and 17-year-olds in this referendum as an addition to the Westminster franchise.

I reject, too, the suggestion that EU citizens living in the UK should be included. The referendum is about delivering a pledge to the British people to consult them about the future of their country. It would be a travesty to seek to include EU nationals whose interests might be very different from those of the British people.

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

I welcome my right hon. Friend’s comments about Gibraltar, which will be warmly welcomed by the people of Gibraltar and which recognise that Gibraltar is a particular case. Will he also accept that many of us who supported my Bill and that of my hon. Friend the Member for Stockton South (James Wharton) in the previous Parliament did so on the basis of the parliamentary franchise? I strongly urge my right hon. Friend to stick to that and not be drawn into debates about broader issues of the franchise that are not part of this Bill’s proposals.

[Mr Hammond]

I am grateful to my hon. Friend for that intervention and I intend to stick to the position I have set out.