My Lords, I support my noble friend Lady Hayter’s Amendment. I chair the EU Services Sub-Committee, which conducted an inquiry into the future UK-EU relationship on professional and business services, including financial services. I had no expectation that these topics would be covered in this thinnest of thin treaties, even though they are vital to the UK economy. Professional and business services accounted for almost 12% of the UK economy, £224 billion in gross value added, 4.6 million jobs and 23% of all registered businesses in 2019. The UK has a trade surplus of £12.4 billion with the EU.
What we do know is that the Government have failed to achieve mutual recognition of qualifications or to maximise short-term mobility of labour, which will have a detrimental effect on creative industries. Anything involving selling goods or services will require a work visa. These barriers will have a disproportionate effect on small and medium-sized enterprises.
On the wider issues not yet covered, if we fail to achieve a data adequacy agreement, the cost to business, at a conservative estimate, will be between £1 billion and £1.6 billion to arrange standard contractual clauses. Agreements on equivalence and regulatory co-operation in financial services, intellectual property, cross-border supply of services, rights of establishment and business mobility, in addition to the mutual recognition of qualifications, are all vital ingredients to professional and business services’ continuing success. What priority will the Government give to these areas?
Finally, the decision to leave Erasmus+ is a political one. My committee will scrutinise the detail of any alternative, to ensure that our students and universities are not worse off. In reply to a Question in the Commons, the Prime Minister said that
“the hon. Gentleman is talking through the back of his neck. There is no threat to the Erasmus scheme”.—[Official Report, Commons, 15/1/20; col. 1021.]
I suppose that that is technically correct; Erasmus will thrive without us. Is that what he really meant? It is still not too late to try to negotiate to stay in Erasmus and I urge the Government to do so.
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