EU-UK Trade and Cooperation Agreement

Lord Bilimoria Excerpts

Friday 8th January 2021 Lords Chamber

[Lord Bilimoria (CB) [V]]

My Lords, the annus horribilis of 2020 drew to a close. As I stated in the Sun,

“what an important achievement this zero-tariff deal has been. Business wanted to leave the EU on good terms. And after four-and-a-half years of wrangling, my reaction to the Christmas Eve deal was: ‘Hallelujah!’”

The deal was a prize. As I said in the same article:

“No deal would have been very pricey for us all as 54 per cent of our imports come from Europe. The cost of food in supermarkets could have risen between three and five per cent while cars would have become more expensive under WTO tariffs.”


Both the UK Government and the European Union deserve huge congratulations. As I stated in a This is Money article:

“This is a big step and a mighty relief for many firms. With a trade deal agreed, vaccine roll-outs starting and rapid mass testing, this can be a springboard to make 2021 a year of recovery. Importantly, a deal provides a platform on which to build and strengthen the UK-EU relationship in the years to come.”


As Tony Danker, director-general of the CBI, said,

“it is vital that both sides take instant steps to keep trade moving and services flowing while firms adjust.”

Matthew Fell, Chief UK Policy Director for the CBI, said:

“It’s incumbent on both sides to minimise disruption and keep goods moving as businesses get to grips with the changes”.


Tony Danker also said that

“we need urgent confirmation of grace periods to smooth the cliff edge”,

while Matthew Fell went on:

“Authorities can help by relying on pragmatism rather than penalties. Honest mistakes should be coached, not penalised in the coming weeks … Greater regulatory cooperation on financial services and mutual recognition of professional qualifications, are just two business-critical issues that will make a material difference. Over the coming weeks and months, it’s vital that government and business work closely to shape the new relationship with the EU and ensure the UK remains a competitive, dynamic and innovative economy.”


I was delighted to hear that Michael Gove’s Brexit business task force will continue to operate; that is excellent. We also welcome the fact that the deal paves the way for UK participation in Horizon Europe, but it does not contain provisions for the Erasmus programme between 2021 and 2027. There are concerns within the sector about whether the new Turing scheme can fully replicate the benefits of Erasmus, particularly due to the new scheme having no provisions for inward student mobility or staff placements. Can the Minister reassure us?

As I said in the Sun:

“We’ve got lots to look forward to … Now is our time to shine … What’s important is that this agreement has never been about the EU versus Britain. Our wealth and prosperity depends upon them and vice versa … now is the time for the Government to seize opportunities. A trade deal means nothing unless British companies are able to make the most of it.”


This is just the beginning—let us make the most of it.

European Union (Future Relationship) Bill

Lord Bilimoria Excerpts

3rd reading & 2nd reading & Committee negatived & 2nd reading (Hansard) & 2nd reading (Hansard): House of Lords & 3rd reading (Hansard) & 3rd reading (Hansard): House of Lords & Committee negatived (Hansard) & Committee negatived (Hansard): House of Lords
Wednesday 30th December 2020 Lords Chamber

[Lord Bilimoria (CB) [V]]

My Lords, four and a half years after the referendum we have a deal—hallelujah. It is with our biggest partner and our neighbour, our principal economic partner, with 43% of our exports and 52% of our imports. We have achieved this deal in the midst of a pandemic at a time when we have the worst economic crisis in 300 years—our economy is expected to have shrunk by 11% this year and businesses have had nothing short of a nightmare. It is important that we have achieved a zero tariff and zero quota deal with the EU.

There is a lot to be done, as has been mentioned, such as financial services equivalence. The deal is lighter than the EU trade deals with Canada and Japan. The Government need to prioritise a dialogue on equivalence with urgent speed. Next week, regarding the situation management and problem solving with keeping the borders open and moving, if there is disruption, what plans are in place to manage the crisis? Could the Minister reassure us?

Looking forward, Brexit is what we make of it. How do we make the UK competitive and dynamic? How can we boost business investment across our regions and make ourselves a world leader in net zero? How can we continue to be the second or third largest attractor of inward investment in the world and continue to be an open, outward-looking economy with the best of the best capabilities of everything in every field? How do we build on this deal? That will be a priority, including the services sector which makes up 80% of our economy.

I want to thank Michael Gove for his Brexit business task force. That task force will continue to operate over the coming months. I was relieved to hear that the we are going to continue to be members of the Horizon programme. Will the Minister confirm this? However, I am disappointed that we are leaving Erasmus, which has been a phenomenal opportunity for our students; as president of UKCISA I know how good it has been. Will the Minister reassure us that the new Turing scheme will be as good and give our young people a chance straightaway—that there will be no time lag and that opportunity will exist? Much has already been said on security. We need to make sure that we continue to have the security arrangements with the EU that have been so fundamental to us.

Business has proven itself. Even in this time of doom and gloom, we have shown that we can bounce back when given a bit of a chance. I think that now, with this deal, with the AstraZeneca vaccine announced today and mass testing being rolled out, next year is going to be a great opportunity. Britain will be a leader on the world stage, holding the presidency of the G7 and hosting COP 26. We have shown world-class collaboration between our universities and business, as has been shown with Oxford and AstraZeneca, and internationally. This is going to be fantastic—I am very optimistic.

We have rolled over more than 60 trade deals, including with Canada and Japan. The CPTPP opportunities and opportunities to do deals with countries such as the USA and India are enormous. We will continue to be members of BusinessEurope. As president of the CBI, I want to say this: we are now moving to an era of partnership with the European Union. There is an African saying:

“If you want to go fast, go alone. If you want to go far, go together.”


We are going to go together in prosperity with the EU and the UK working together.

Spending Review 2020

Lord Bilimoria Excerpts

Thursday 3rd December 2020 Grand Committee

[Lord Bilimoria (CB) [V]]

My Lords, there is a forecasted drop in GDP of more than 11% this year, the worst in 300 years; the fear of unemployment possibly going up to 7.5%—almost 3 million people—by Q2 2025; debt to GDP more than 100%—the last time that happened was in 1963; and a deficit of £400 billion. The amazing support that the Government have given during the Covid pandemic of almost £300 billion—and counting—and many measures in this spending review are so welcome. The new national infrastructure bank is fantastic and upgrading infrastructure is great, but does the Minister agree that broadband should be at 100% coverage of the country, not 85%?

On the plan for jobs, we need to avoid long-term unemployment. The scarring would be horrible. Young people, in particular, have suffered so much; we cannot have youth unemployment. We urgently need the energy White Paper. Can the Minister confirm that it will come soon? There must be no talk of tax rises, because what would be worst for the recovery—for businesses to bounce back after this—is stifling that recovery by increasing taxes. We need to create growth, which means keeping taxes low. It is that growth and the creation of jobs that will pay the tax that will pay for the public services. That is the best solution.

The approval of the Pfizer-BioNTech vaccine is a major breakthrough against Covid-19. After the loss of so many lives and livelihoods, it now really feels as though there is light at the end of the tunnel. Does the Minister agree that three things are now needed to shore up confidence? The first is the continued, urgent rollout of rapid, mass, affordable antigen lateral flow testing throughout the country, available in schools, workplaces, colleges and universities and at airports and factories—everywhere. That regular testing is a huge part of the solution.

Secondly, firms need clarity about the level of support through to March and beyond. Thirdly, we need transparent trigger points for exiting higher tiers and a robust, evidence-based approach to ongoing restrictions.

[The Deputy Chairman of Committees (Baroness Barker) (LD)]

Lord Loomba, please stand by to speak after the next speaker. I call the noble Baroness, Lady Sheehan.

Northern Ireland Protocol: Implementation Proposals

Lord Bilimoria Excerpts

Thursday 19th November 2020 Lords Chamber

[Lord True (Con)]

My Lords, the noble Earl raises an extremely important point. I cannot go into matters that are, as he implies, under active discussion, but we have certainly committed to an intensified process of engagement with the EU to resolve all outstanding issues such as this, which includes securing flexibilities for trade from GB to NI. That is particularly important for supermarkets, where we have been clear that specific solutions are required. The recent joint letter from the First Minister and Deputy First Minister reflects how important that issue is for Northern Ireland, and we will continue to work closely with the Executive to get a solution to this problem.

[Lord Bilimoria (CB) [V]]

Agreement with the EU is key for the sustainability and implementation of the protocol. As president of the CBI, I hear from businesses on a daily basis about the urgent need for the clarity that is needed on the transfer of goods from Great Britain to Northern Ireland. Businesses want clarity, but they also want to ensure that the protocol works long-term for peace, trade and investment—and this starts with a deal. Does the Minister agree that clarity is needed to ensure the continued flow of goods between Great Britain and Northern Ireland?

Future of Financial Services

Lord Bilimoria Excerpts

Wednesday 11th November 2020 Lords Chamber

[The Deputy Speaker (Lord McNicol of West Kilbride) (Lab)]

Let us move to the next speaker and we will come back. Apologies, Lord Flight, but you were breaking in and out.

[Lord Bilimoria (CB) [V]]

My Lords, we look forward to the Ron Kalifa report on fintech. The trade credit insurance guarantees making a real difference. Would the Government agree it should be extended until June 2021? Will the Government consider instituting a new 3i-type funding to help provide equity finance for funding, recovery and scale-up? Will the Minister clarify if the Government will consider reinstituting a Green Investment Bank—a question that has been asked before? Finally, will the Minister agree that getting an EU deal with make equivalence much easier to resolve?

[Lord Agnew of Oulton (Con)]

The noble Lord asks a lot of questions: I will take the last one first. Of course, getting a deal will make the whole relationship far more constructive. We remain cautiously optimistic that this can be achieved. I think the Government are broadly sceptical about creating an equity distribution fund or a fund that makes equity available. As I am sure the noble Lord will know, the private equity industry has some $1.5 trillion-worth of dry powder available for investment around the world, including this country. I believe that we should be accessing that rather than using taxpayers’ money.

Economy Update

Lord Bilimoria Excerpts

Tuesday 10th November 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

I share the noble Lord’s concern for those who have fallen through the cracks. We have issued a number of initiatives over the last few weeks and months to try to close the gap. For example, for the arts sector, there is some £1.5 billion of support, some of which will be available to vulnerable groups which have not been able to be part of the traditional self-employed schemes. We have also made funding available to local authorities, which are able to use discretion in the allocation of some of that money for vulnerable self-employed people.

[Lord Bilimoria (CB) [V]]

[Inaudible]—will be crucial. The news of the Pfizer/BioNTech vaccine is very welcome. Does the Minister agree with the recommendation of the CBI, of which I am president, about the creation of an economic recovery commission, uniting government, business and unions? It would be a vital step, as would the urgent rollout of affordable, regular mass antigen testing—with the Liverpool pilot, thankfully, having been started and now in full swing—along with investment in job-creating projects, with a focus on digital skills and green jobs. To reinforce what the noble Baroness, Lady Kramer, said, what can the Government do to help the 3 million excluded from the huge amount of government support that has been made available so far, for which we are all grateful?

[Lord Agnew of Oulton (Con)]

My Lords, the Government are in constant contact with the business community. They absolutely accept that the wealth creation engine of our economy is vital for us to recover from this pandemic. I share the noble Lord’s optimism about the vaccine. Of course, we need to be careful—we are not through the last hurdle yet—but it is certainly nice to have a little bit of good news occasionally. I have answered the point about the self-employed, raised by several other noble Lords. It is perhaps worth reminding the noble Lord that we have improved the universal credit system to try to provide a little more protection at that end of the system. We have also confirmed that those on mortgage holidays can extend to six months without any impact on their credit file.

Covid-19: Economy Update

Lord Bilimoria Excerpts

Tuesday 27th October 2020 Lords Chamber

[Lord Agnew of Oulton (Con)]

My noble friend raises an important point. This country now has a more devolved structure. We have tried to keep the devolved and mayoral authorities involved in decisions at every point. We have given some £13 billion to the devolved authorities to react to the issues that we are facing. I accept that it might be easier if we could operate on an entirely national basis, but unfortunately that is not the present reality of our constitution. I assure my noble friend that we are doing everything possible to talk to the devolved authorities at all times.

[Lord Bilimoria (CB) [V]]

My Lords, we welcome the latest support measures from the Chancellor, especially the new Job Support Scheme. It is miles better than the one he announced a few weeks ago. Can the Minister tell us when the rapid 15-minute, affordable antigen coronavirus test will be available to businesses, universities and schools across the country so that regular testing can take place to enable the economy to fire on all cylinders? When we will be able to open up airport testing to allow tourist and business travel?

EU Exit: Negotiations and the Joint Committee

Lord Bilimoria Excerpts

Wednesday 21st October 2020 Lords Chamber

[Lord True (Con)]

My Lords, of course it is essential that that point is recognised. I have made a practice, since I had the honour of taking on this brief, of not criticising the actions of any EU member state or anybody within the EU, and I shall forbear to comment on what any individual European leader may or may not have said. However, my noble friend is absolutely right that our independence, our right to set our laws, to control our own waters, and all the well-known expectations—not requests or demands—of an independent state need to be recognised by the other party.

[Lord Bilimoria (CB) [V]]

My Lords, the Statement very clearly says that this country should get ready for 1 January 2021 on arrangements that are more like Australia’s—in other words, WTO rules. Does the Minister agree with the 71 trade associations and professional bodies—along with the CBI, of which I am president—representing 190,000 businesses and 7 million employees, calling on politicians on both sides to carve a path towards a deal, followed by the European business groups from France, Germany and Italy also calling for smooth trading conditions and a solution? Does he agree that now is the time for compromise and tenacity and that a deal can be done? If there is a deal, there will be a platform on which to build, for security, movement of people and all other parts of our relationship.

[The Deputy Speaker (Baroness Garden of Frognal) (LD)]

Questions and answers should be as brief as possible, please, so that we can get through more people.

EU Exit: End of Transition Period

Lord Bilimoria Excerpts

Thursday 24th September 2020 Lords Chamber

[Lord True (Con)]

My Lords, I can only repeat the answer that I gave yesterday, which the noble Baroness very kindly read out. The Government believe that the infrastructure and IT systems that are put in place will meet the needs of this nation.

[Lord Bilimoria (CB) [V]]

My Lords, the coronavirus pandemic has consumed businesses’ attention over the last few months, and business preparations for the end of the transition period have not only stalled but gone backwards. This has left businesses with very little capacity to prepare for a chaotic exit from the EU. Does the Minister agree that the priority for business still has to be a negotiated outcome and that zero tariffs, zero quotas and formalised customs opinions will be to our benefit, generating £5.7 billion in benefits for exports and also for professional services? This is not just about the moving of physical goods. Firms have always been clear that the UK internal market must work in lock-step with the Northern Ireland protocol. Surely a deal will make sure that this is resolved and is an absolute priority.

[Lord True (Con)]

My Lords, again, of course I agree. I have always made it clear from this Dispatch Box that the Government hope very much that we will have a deal—a Canada-style deal—which I think will be in everybody’s interest. However, we have to deal with the situation in terms of leaving the customs union, whatever the outcome, as I said in my first Answer. The Government are investing £235 million—for example, in staffing and IT systems—including £100 million to improve and develop HMRC systems to reduce trader burdens, and £15 million to build new data infrastructure to enhance border management. The Government are working extraordinarily hard to keep this country open, prosperous, thriving and capable of taking the great opportunities that leaving the European Union will allow us.

EU: Future Relationship

Lord Bilimoria Excerpts

Wednesday 23rd September 2020 Grand Committee

[Lord Bilimoria (CB) [V]]

My Lords, as far back as February 2020, the European Commission laid out its negotiating position, covering general arrangements, values, principles and governance, economic arrangements, trade, level playing field guarantees, fisheries, security arrangements, law enforcement, judicial co-operation in criminal matters, foreign policy, security and defence. Then, in May, the UK published a draft free trade agreement in a series of separate draft agreements covering fisheries, air transport, civil aviation safety, energy, social security co-ordination, civil nuclear, law enforcement and judicial co-operation in criminal matters, the transfer of unaccompanied asylum-seeking children, and readmission of people residing without authorisation.

Between March and September, we have had eight rounds of negotiations. At the end of the eighth round, the EU’s chief negotiator, Michel Barnier, accused the UK of refusing to include indispensable guarantees of fair competition in our future agreement, while requesting access to our market and said that

“the UK has not engaged in a reciprocal way on fundamental EU principles and interests.”

The noble Lord, Lord Frost, the UK’s negotiator, said that the UK had

“consistently made proposals which provide for open and fair competition, on the basis of high standards, in a way which is appropriate to a modern free trade agreement between sovereign and autonomous equals.”

So what if there is no agreement? What if there is a so-called Australia-style agreement whereby we will trade with the EU on WTO terms? The Prime Minister said in early September that a trading agreement like Australia’s

“would be a good outcome for the UK.”

Can the Minister confirm that this is the case? We have of course also had the whole issue of the internal market. In his statement after round eight, Michel Barnier said that:

“The EU remains committed to an ambitious future partnership with the UK. This would clearly be to the benefit of both sides. Nobody should underestimate the practical, economic and social consequences of a ‘no deal’ scenario.”


I speak as president of the CBI, which has been urging both the UK and EU to renew efforts to get a deal. This is essential in order to protect people’s jobs and living standards amid one of the worst recessions in living memory. Time is running out. We have to avoid a cliff edge. This must be the utmost priority for both sides; the UK and the EU cannot afford a no-deal scenario, which would weaken the economies already impaired by the Covid-19 crisis. Business preparations on both sides have not only stalled but have gone backwards. Firms have had to use their stockpiles and reserves—previously built up in the run-up to the threat of no deal last year—to survive the pandemic. There is now next to no capacity to rebuild reserves while directing resources and attention to dealing with the impact of Covid-19 and now a potential second wave of the virus.

Over the last six months we have seen extraordinary levels of ambition, determination and collaboration between businesses and Governments across Europe. These efforts have helped weather the immediate impacts of the Covid-19 pandemic and must be redoubled for the challenges that lie ahead. This same level of determination and creativity is now needed by both the EU and the UK to deliver a Brexit deal for growth.

A deal will have tangible, positive benefits for firms employing thousands of people across Europe in industries such as advanced engineering, manufacturing, green technology and digital and cyber technologies—I could go on. It will also underpin economic recovery on both sides, protecting our younger generation and the future of our public services. Does the Minister agree?

A deal will form a foundation for a strong, growing relationship between the UK and the EU in the future. It will create space for both sides to focus on shared challenges, such as creating jobs, rather than needlessly adding red tape, extra costs and paperwork.

A deal will also be a catalyst to address the global challenges of our time, from tackling climate change at next year’s COP26, which we are going to be privileged to host, to strengthening international institutions, including the WTO, and global co-operation during the UK’s presidency of the G7. It will be crucial for the UK and the EU to work hand in hand to be at the forefront of these issues.

The CBI is committed to working closely with BusinessEurope—which we will continue to be a member of although we have left the European Union—and its sister federations to champion a strong and open Europe on the global stage. In short, the size of the prize is real. Ending years of division and delay by securing an agreement between the EU and the UK will help our economies during the biggest challenge of our generation.

This has been such a turbulent period, not least because of Brexit, but talks are on and the efforts to get a good deal must continue. Business cannot afford anything else. Amid all the noise of the negotiation, businesses in the UK and the EU remain clear that a good deal is essential. Let us not forget that a negotiated outcome is the official position of the UK Government. Can the Minister reassure us about this once again?

An agreement will be the foundation for post-Covid recovery across the continent. It will protect jobs under pressure from the pandemic by duty and quota-free trade, closer customs co-operation and easing the implementation of the Northern Ireland protocol. We must remember that the protocol was the compromise needed to avoid a hard border in Ireland. For Northern Ireland’s businesses and communities it must be implemented in an effective and sustainable way. For that, we need a deal.

A deal will provide a platform on which the UK’s world-beating services industry can continue to trade with its biggest market and stay competitive. It will also be a great fillip for UK exporters, allowing them to focus on R&D, not red tape. Getting a deal requires political leadership and compromise from both sides and is needed urgently in the coming weeks.

As I have said, the reality is that many businesses are still struggling to deal with the fallout from Covid. That is why getting the deal over the line is so important. It means a greater choice for consumers. It means prices of groceries do not rise during a recession. This is vital to help people who are struggling. It will allow businesses to concentrate on helping the Government’s levelling-up agenda. It means building more schools and hospitals, better-quality housing, and growing our economy through the creation of green jobs, and it will be a catalyst for the global challenges of our time. Ultimately, a deal with our biggest trading partner provides a platform on which future trade agreements can be built.

Businesses have shown extraordinary resilience over the previous four years—and over the past six months. We need this deal urgently in the interests of everyone, both in the UK and Europe.

[The Deputy Chairman of Committees (Baroness Barker) (LD)]

The noble Baroness, Lady Meyer, is not contributing, so I call the noble Lord, Lord Berkeley.