Asked by: Vince Cable (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what assessment he has made of the potential benefits of continued membership of the European Investment Bank once the UK has left the EU.
Answered by Steve Barclay
The European Investment Bank (EIB), and its offshoot, the European Investment Fund (EIF), have lent significant amounts to UK infrastructure and growth businesses.
It may prove to be in the mutual interest of the UK and the EU to maintain an ongoing relationship between the EIB and UK after the UK has left the EU. The government is looking to explore these options with the EU as part of the negotiations.
Whatever the outcome of the negotiations, it is important that UK businesses have access to the finance they need. As the Chancellor set out in his 2017 Mansion House speech, the government will be prepared in case the UK does not maintain a relationship with the Bank.
Asked by: Vince Cable (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what estimate he has made of the number of UK-based financial sector companies that (a) have moved certain operations abroad since the vote to leave the EU and (b) are planning to move operations abroad when the UK leaves the EU.
Answered by Steve Barclay
We understand the issues that the UK’s departure from the EU creates for the financial sector as a whole and for specific firms. The government believes that an implementation period agreed early in the process would help both sides to minimise unnecessary disruption. The Office of National Statistics (ONS) publishes regular updates on employment figures, including by sector.
Asked by: Vince Cable (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what the effect has been on (a) employment and (b) UK public finances of financial sector companies moving abroad since the vote to leave the EU.
Answered by Steve Barclay
The Office of National Statistics (ONS) publishes regular updates on employment figures, including by sector. In terms of the economy as a whole, the ONS has calculated that the employment rate from February to April 2017 was 74.8%, the joint highest since comparable records began in 1971. The Office for Budget Responsibility is due to publish its next report on the public finances later this month.
Asked by: Vince Cable (Liberal Democrat - Twickenham)
Question to the HM Treasury:
To ask Mr Chancellor of the Exchequer, what steps he is taking to prevent UK-based companies in the financial sector moving abroad when the UK leaves the EU.
Answered by Steve Barclay
We are engaging with firms on a regular basis, and reassuring them of the Government’s aim to agree a bold and ambitious free-trade agreement. Transitional arrangements to avoid unnecessary disruption and dangerous cliff edges will be mutually beneficial. This will give firms more time before they have to make permanent decisions regarding their future plans, and minimise the need for them to restructure their operations. We will also ensure that EU legislation is brought into UK law in good time to ensure firms have certainty about their regulatory environment once the UK leaves the EU.