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Agrees that the UK Parliament cannot replicate EU oversight but suggests appropriate support could enable it to manage increased regulatory scrutiny.
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Emphasises concern over increasing regulator powers without commensurate parliamentary oversight and calls for balanced views between wholesale and retail regulation objectives.
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Supports the idea that financial services should be prioritised in trade deals and market access negotiations with other countries.
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Highlights the importance of legal underpinning alongside financial services in trade deals and stresses the complexity of dealing with US state-level regulation.
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Eagle acknowledges the importance of the financial services sector and discusses the challenges posed by EU regulations such as MiFID. She highlights the difference between principle-based regulation in the UK and detailed legislation favoured by the EU.
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Glen acknowledges Eagle's points and emphasises the importance of international judicial and legal cooperation, particularly regarding digital evidence sharing post-Brexit.
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The UK’s financial services are a huge asset and world class, with London being the second most competitive in the world. However, Scotland ranks just behind London and south-east England in contributions to the sector. Scotland has a rich history as a financial hub with professional accounting and banking institutes established early on. The sector employs around 84,000 people in Scotland and contributes substantially to the economy with high profit margins and tax revenues. Brexit's impact is significant, leading to deregulation or reregulation debates, and Scottish presence should not be overlooked by the UK Government.
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The financial services sector played a crucial role during the covid pandemic, facilitating about £75 billion in support. Support is given for adding growth and international competitiveness as secondary obligations for FCA and PRA; reducing bank surcharge taxes; and actions on listings, public markets, share trading obligation, and double volume cap. Ringfencing regulations need review due to complexity and cost, especially compared with competitors. Emphasis is placed on pursuing best-in-class trade deals including services and financial services. Levelling up should focus more on people's opportunities through alternative routes into the sector like apprenticeships and regional cluster development. Additionally, debt advice for those in problem debt post-covid and SME access to finance are highlighted.
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Neill emphasised the importance of financial services in his constituency, accounting for over 36% of jobs. He highlighted the diversity within the sector, such as insurance contributing £30 billion to the economy. Legal services were also noted to be worth £60 billion and crucial to contracts and trading mechanisms. Neill stressed the need for regulatory reform and inclusion of financial services in free trade deals. He called for updates on progress with the Kalifa and Hill reviews and implementation of listing reforms. Additionally, he addressed the importance of legal co-operation against economic crime and encouraged recognition of the City of London Corporation's work in green finance.
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Mr. Thomson discussed his background in financial services, emphasising the importance of high-quality public services and government support for the sector. He highlighted that Scotland is the second largest financial services cluster outside London with a significant contribution to the economy at 9.4% of gross value added (£13 billion). The industry employs over 160,000 people directly and supports nearly 6% of Scottish national employment. Mr. Thomson also mentioned the importance of FinTech, Scotland's role in green finance, and the need for skills development to ensure a diverse pipeline of talent.
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Labour supports the UK's financial services sector as a major driver of economic growth, contributing £132 billion to the economy in 019. The sector is crucial for export earnings and job creation, with the OECD warning about the risks to economic recovery without proper support. Siddiq emphasises the need for regulatory stability and seeks equivalence with EU regulations post-Brexit, citing the importance of financial services exports to the EU. She also advocates for innovation in FinTech, suggesting it could add £3 billion to the economy and create 50,000 high-skilled jobs. Additionally, she calls for more public contracts for British businesses and greater ambition from the Government on green bonds to support a transition towards a green economy.
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The Economic Secretary responded positively to the debate, highlighting the financial services sector's significant contributions during the pandemic. He discussed regional hubs outside London and acknowledged progress in diversity but emphasised more work is needed. The Government’s agenda includes support for high-paid jobs beyond London and initiatives like FinTech and green finance.
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This has been a well-informed, thoughtful and good-natured debate, and it was great to hear the hon. Member for Gordon (Richard Thomson) talk about the importance of financial services to Scotland—I also made that point. Many hon. Members raised points that I did not mention in my opening remarks.