Viscount Waverley – 2016 Parliamentary Question to the HM Treasury
The below Parliamentary question was asked by Viscount Waverley on 2016-06-27.
To ask Her Majesty’s Government what measures they and the Bank of England will be taking to protect and promote (1) the City of London, and (2) Edinburgh, as financial centres until negotiations to exit the EU are completed.
Lord O’Neill of Gatley
The Chancellor has met with financial institutions this week to discuss the impact of the United Kingdom’s decision to leave the European Union.
Britain’s economy and financial system are fundamentally strong. Action by the government and the Bank of England over the last six years has substantially strengthened the resilience of the financial system, and the authorities have all the necessary tools in place to protect financial stability.
The UK is a leading global financial centre serving not just Britain or Europe, but the entire world. It has natural strengths such as a central time zone and the English language, together with an unrivalled pool of firms and investors, supported by world leading legal and professional services. Major banks from across the globe have bases in the UK, and the UK has the fourth highest share of cross-border banking. It is also fast establishing itself as a global hub for renminbi, rupee, Islamic finance, green finance and FinTech business.
Formal negotiations with the EU will not begin until the UK triggers Article 50. In the meantime, and during the negotiations that will follow, there will be no change to people’s rights to travel and work, and to the way our goods and services are traded, or to the way our economy and financial system is regulated.
The government is committed to deepening relationships with new and established trade partners. Earlier this week the Chancellor laid out plans to build a highly competitive economy by targeting a corporation tax rate of less than 15%, focusing on a new push for investment from China, ensuring support for bank lending, redoubling efforts to invest in the Northern Powerhouse and maintaining the UK’s fiscal credibility.
The government will also maintain an open and constructive dialogue with the UK financial services industry, including through the Financial Services Trade and Investment Board, which is tasked with boosting and promoting the UK’s financial services competitiveness position and supporting jobs. Government and industry collaboration will continue to play a central role in delivering a global, sustainable, innovative and competitive UK financial services industry that continues to go from strength to strength.
