Brexit Deal: Referendum

Debate between Martin Vickers and Geraint Davies

Monday 11th December 2017 Westminster Hall

[Geraint Davies]

It is true that people have said different things at different times—things are evolving. It is not for me to comment on everything that everyone says. The hon. Gentleman will know that a couple of weeks ago his own Brexit Secretary claimed that he had enormously detailed impact assessments—so detailed, confusing and even boring that he could not reveal them. Then, the next moment, apparently he did not have any at all. Obviously there are inconsistent views on that.

I am a proud member of the European Scrutiny Committee, to which the current Chancellor gave evidence before Brexit, when he was the Foreign Secretary. I remember asking him what economic assessment had been made of swapping the generally older, retired people from Britain who live in Spain and consume its health service—among other products in Spain, which are of course very nice—in exchange for hard-working Polish people in Britain who contribute tax. We will be swapping people who take public expenditure for people who are giving tax. He said, “Well, the answer to that is that no assessment at all has been made of the economic impact of Brexit, because we don’t intend to leave.” In fact, I can reveal—I know this from secret sources—that before the EU referendum, all the top civil servants were sent an email by No. 10 saying, “Under no circumstances should you do an assessment, economic or otherwise, of the impact of Brexit, because the media would find out and think we were anticipating leaving. That would encourage people to vote that way, because they would think that the Government thought we were going to leave, and we don’t want to give that idea credibility.”

There has been a long period during which the Brexit Secretary and the Treasury could have put together an impact assessment. Of course, the Treasury made an implicit assessment in the Budget. It is remarkable for the hon. Member for Solihull (Julian Knight) to talk about a shift in nuance in the Labour leadership—a gradual warming, if I can put it that way—towards the customs union and the single market, which I embrace, and to ask, “What about that inconsistency?” when we have a Brexit Secretary who one moment says that he has all these impact assessments, but then, when he opens the cupboard, the cupboard is bare.

[Martin Vickers]

The hon. Gentleman is speaking passionately. He made the interesting, supposed revelation that the Treasury did no assessment prior to the referendum. He will accept, then, that “Project Fear” was based, as we thought at the time, on absolutely nothing other than figures plucked out of the air.

[Geraint Davies]

What I said stands. Obviously, scenario plans were done in terms of the aggregate impact, and no forecast is perfect, but what we do know about the impact of Brexit was that, overnight, the hon. Gentleman’s salary and assets were devalued by something like 15%, because the financial markets took their own view that this was crazy. We are all worse off for it. People living in Britain have not really seen it, but gradually the impact of that devaluation is coming through in inflation, on top of low wages. People were told, and sadly it has happened: the poor have been made poorer. The leave campaigners said, “The reason you are poor is foreign people from the EU,” when in fact the average person from the EU contributes 35% more in tax than they consume in public services. The poor—and all of us—will become even poorer without them, and we have seen this awful devaluation.

The evaluations were not good enough, but there were dire predictions. Let us take as an example a Japanese car company. I know there have been lots of under the table, secret negotiations with car companies, but the reason they are here is that we are a stable democracy and economy, and provide an English-speaking platform to the biggest market in the world. Once we are not in that market, they and other investors will move. The economic impact on Britain, from an intuitive, a priori point of view, is wholly predictable.