Source · Select Committees · Treasury Committee
Recommendation 9
9
Acknowledged
Paragraph: 72
Brexit has not been a major focus of this particular inquiry.
Recommendation
Brexit has not been a major focus of this particular inquiry. Nonetheless, it will clearly have a profound impact on the economy’s future direction and growth prospects, potentially greater than the long-term effect of the pandemic. In its response to this report, the Treasury should explain how growth policy is identifying and helping those sectors most adversely affected by changes in trade between the UK and EU, as well as more clearly identifying the economic opportunities that may arise from Brexit.
Government Response Summary
The government acknowledged the need to explain how growth policy is identifying and helping sectors most adversely affected by changes in trade between the UK and EU. The Autumn Statement announced that the government will move rapidly to review retained EU law in key growth industries.
Paragraph Reference:
72
Government Response
Acknowledged
HM Government
Acknowledged
This section is addressing recommendations in paragraph 65, 72, 92 and 100 on productivity enhancing opportunities and challenges after Coronavirus; addressing the investment shortfall through tax incentives and policy certainty; economic opportunities as a result of Brexit and supporting firms affected by changes in trade between the UK and EU; and Help to Grow funding moving forward. ... Brexit opportunities The government is committed to taking advantage of the opportunities that Brexit provides. The Autumn Statement announced that the government will move rapidly to review retained EU law in key growth industries–including digital technology, life sciences, green industries, financial services, and advanced manufacturing. This work is already underway in several of these sectors, such as financial services. The UK is the world’s second largest exporter of services and the UK remains a net exporter of services to the EU. That is why the government has taken steps to regulate UK insurance firms through reforming Solvency II. This will provide the UK with regulation tailored to the needs of the UK insurance sector, while unlocking of tens of billions of pounds for investment in productive assets like infrastructure. To progress this program of work the government will task the Government Chief Scientific Adviser and National Technology Officer, Sir Patrick Vallance, to bring together the best minds to advise how the UK can better regulate emerging technologies, enabling their rapid and safe introduction. This will ensure that post-EU exit, the UK is the best regulated economy in the world that encourages prosperity, innovation, and entrepreneurship. Since the introduction of the Trade and Cooperation Agreement (TCA) the share of goods trade with the EU has remained relatively unchanged, suggesting that businesses are adapting to the change in trading status with the EU. The government provided extensive support for exporters as the UK left the EU to ease the transition. For example, in November 2021 the government refreshed its offer to exporters in the 12-point Export Strategy, which sets out a range of support for exports, including the DIT Export Support Service and HMRC-led grant support. DIT continues to provide grant support through its Internationalisation Fund and for tradeshows. DIT is considering how best to enhance the government’s support offer from 2023 onwards.