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UK-EU Trade and Cooperation Agreement

Question for Treasury

UIN HL2451, tabled on 6 September 2021

To ask Her Majesty's Government what estimate they have made of the impact of the UK–EU Trade and Cooperation Agreement on (1) the value of financial assets, and (2) the number of financial services sector jobs in the UK.

Answered on

16 September 2021

The UK-EU Trade and Cooperation Agreement gives legal certainty for financial services firms to the extent set out in both sides’ market access offers and generally in the services chapter and financial services sub-section. The Agreement will benefit financial services firms’ clients and the wider economy in which they operate.

In January, the Governor of the Bank of England stated that between 5,000 and 7,000 jobs had moved due to Brexit. Over a million people are employed in UK financial services. ONS data shows that jobs in financial and insurance activities have increased from 1.27 million in June 2016 at the time of the referendum to 1.45 million in June 2021. We continue to work closely with the Bank of England and Financial Conduct Authority to monitor any relocation of financial services activity from the UK to the EU.

In his Mansion House speech on 1 July, the Chancellor set out the government’s plans to make the UK the world’s most advanced and exciting financial services hub, to create prosperity at home and help the UK project its values on the global stage.

Answered by

Treasury