European Union (Withdrawal) Act
Debate between Lord Hammond of Runnymede and Angus Brendan MacNeil(6 years ago)
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Angus Brendan MacNeil (Na h-Eileanan an Iar) (SNP)
The Chancellor is being very candid. According to his recently published long-term economic analysis, the Government’s two scenarios would result in a hit to GDP, or a lowering of the growth rate, of between 3.4% and 6.4% if there is a deal, and of between 6.3% and 9% if there is no deal. Will he confirm that this is indeed the choice the UK are putting before Parliament?
Mr Hammond
The hon. Gentleman is misinterpreting the analysis. These are not rates of GDP growth; this is an estimate of the relative size of the economy at a 15-year horizon under different scenarios. In all scenarios, we expect that GDP growth will recover and continue.
Angus Brendan MacNeil
Will the Chancellor put on the record what he thinks the hits will be? He said in response to a Labour Member that there would be a lower growth rate. What are the percentage differences in the two scenarios—deal and no deal—versus staying in the EU?
Mr Hammond
I am sorry but the hon. Gentleman is wrong. I did not talk about a lower growth rate. I am talking about a smaller overall size of the economy. It is our central view that, once the economy has moved to a new equilibrium, growth will resume in all these scenarios and that our economy will go on getting larger.
Mr Hammond
This is not an economic forecast. It is a modelling of five different scenarios. Our economic growth rate in 2033 will depend on a raft of other issues, not only on the outcome of this debate.
Economy and Jobs
Debate between Lord Hammond of Runnymede and Angus Brendan MacNeil(7 years, 5 months ago)
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Mr Hammond
No, I do not agree with that. I think it is perfectly clear that it should be possible to negotiate an agreement with the European Union that provides for mutual, reciprocal access to each other’s marketplaces, and for frictionless arrangements for goods crossing the borders. That would not be membership of the single market or membership of the customs union, for all sorts of legal reasons, but it could have, to a very large extent, the same effect over a transitional period. I think that that is possible to achieve.
Mr Hammond
I will give way one more time, to the hon. Member for Na h-Eileanan an Iar (Angus Brendan MacNeil)—and then I will give way to a couple of my hon. Friends.
Angus Brendan MacNeil
I am grateful to the Prime—to the Chancellor. In fact, he is indeed a probable future Prime Minister, given that his is one of the serious voices in the current Cabinet. If his wish does not come true in relation to the single market, when does he think the UK Government will U-turn on the issue? Economic gravity is going to take the UK Government in that direction, whether they like it or not at the moment.
Mr Hammond
I have just explained to the House—and I am sure that the hon. Gentleman heard—that it would not be legally possible for us to leave the EU and stay in the single market. It is simply not an option.