King’s Speech

Baroness Gill Excerpts

Thursday 14th May 2026 Lords Chamber

[Baroness Gill (Lab)]

My Lords, yesterday’s gracious Speech set out the Government’s agenda, focused on growth, investment, security and restoring Britain’s standing in the world. It comes at a moment when the country urgently needs honesty about the economic choices that we face and the inheritance that we got from the last Government. I found it rich to listen to the noble Lord, Lord Fuller, because we are correcting the mess that they left us with. The Government deserve credit for recognising that Britain cannot prosper through isolation. Recent trade agreements with India and the Republic of Korea and stronger engagement with the UAE are positive steps that will create opportunities for British businesses.

But we must also level with the public: those agreements are not large enough to compensate for the weakened trade that we have with Europe, our largest market and closest economic partner. For years, the British public were sold a narrative that leaving the European Union would automatically unleash growth and prosperity. Instead, over the last six years, Britain has experienced weaker growth, lower business investment, reduced exports and stagnant productivity compared with many similar economies. The consequences are no longer abstract economic arguments; they are directly felt in people’s lives.

Small businesses that once traded freely across Europe now face customs checks, export paperwork, VAT complications and regulatory barriers that they simply cannot absorb. Food exporters have lost markets. Manufacturers have faced delays and rising supply chain costs. Independent retailers importing goods from Europe have had little choice but to pass increased costs on to consumers, and ordinary families have paid the price: higher food prices, labour shortages, increased transport costs and supply chain disruptions have all contributed to pressures on household budgets during an already severe cost of living crisis. Britain outside the EU has not become more economically dynamic; in many ways, it has become more economically constrained.

This debate is now about more than economics alone. It is about Britain’s place in an increasingly dangerous world. The war in Ukraine has fundamentally changed Europe’s security landscape. Russian aggression has reminded us that peace and stability can never be taken for granted. At the same time, the growing threat posed by Iran through regional destabilisation, proxy conflicts, cyber threats and support for extremist groups demonstrates how interconnected modern security challenges have become. These crises and the threats we face were eloquently articulated by my noble friend Lord Robertson. It is important that this House and the Government take his speech and comments very seriously, because Britain cannot afford strategic isolation in this environment.

Outside the European Union, we are no longer fully integrated into many of the defence, industrial, procurement and strategic initiatives shaping Europe’s future security architecture. That matters not only militarily but economically. Defence procurement, advanced manufacturing, cyber security, energy resilience and technology investment increasingly depend on large-scale European co-operation.

No serious country can confront these challenges alone. Intelligence sharing, sanctions enforcement, energy security, defence manufacturing and technological resilience all require deeper collaboration with our neighbours. The idea that Britain can go it alone in a world shaped by Russian aggression, instability in the Middle East and intensifying global competition is not realism; it is a dangerous illusion.

This is why the debate must move beyond simply managing Brexit towards correcting its long-term consequences. Rebuilding a closer partnership with Europe is no longer optional; it is essential. Ultimately, Britain should be prepared to make the case for rejoining the European Union.

The economic case is overwhelming. Rejoining the EU would restore Britain’s access to the single market and customs union, removing barriers that currently damage trade, investment and growth. It would also strengthen supply chains, restore investor confidence and make exporting easier for British businesses once again.

Independent economic analysis has consistently suggested that closer integration with Europe could increase UK GDP by several percentage points over time, adding tens of billions of pounds to the economy, increasing tax revenues, improving productivity and supporting higher wages and living standards. That would mean lower costs for businesses, cheaper imports for consumers, renewed investment in science and manufacturing, and greater opportunities for creative and young people to work and study across Europe. It would also mean Britain once again helping shape the decisions that affect our continent, rather than standing outside reacting to them.

None of this, I believe, weakens Britain globally; it strengthens us. A Britain with strong European partnerships is more influential with weakening allies such as the United States, more attractive to investors and better able to compete in a rapidly changing world. Yesterday’s gracious Speech acknowledged that Britain needs growth, stability and renewed international leadership. The challenge now is to match that ambition with honesty and courage to admit where mistakes have been made, reject the politics of isolation and pursue a serious new relationship with Europe that restores prosperity and strengthens our security. The greatest danger facing Britain today is not change; it is refusing to change course when the evidence is clear for all of us to see.