Leaving the EU: Customs

Debate between Angela Smith and Chuka Umunna

Wednesday 16th May 2018 Commons Chamber

[Chuka Umunna]

I absolutely support what the hon. Lady calls for. That is very much the reason why I am an advocate of our continued participation not only in the customs union but in the European economic area. Not only would leaving the customs union and the EEA be a bad decision for our economy, with the customs union relating principally to manufactured goods and the EEA being vital for our services, which account for 80% of our economy, but the Irish Government and many others are absolutely clear that to avoid a hard border on the island of Ireland we need to continue to participate in both the customs union and the EEA. We know that because others have told us. We know it economically, because our trade unions and our businesses have argued for it. We therefore deserve to see the evidence on which Ministers have decided to take a different view.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

Does my hon. Friend agree that is not possible to separate the economic issues that relate to manufacturing and to services? Manufacturing needs services and services need manufacturing as part of their work programme, so surely we need to recognise the integrated importance of manufacturing and services to the British economy.

[Chuka Umunna]

That is absolutely right, and of course it is why I support the motion. However, I would also like to see the Government’s papers that led them to decide that we should not take up the offer that the EU is making to us of continuing to participate in the EEA, in addition to the papers on the customs partnerships.

I want to deal with some points that the Minister for the Cabinet Office made. First, we have been told that we cannot see any of these papers for a number of reasons, but I say to the Minister that this is a Government without a majority, containing members of the Cabinet who said that we should leave the European Union to reassert parliamentary sovereignty. Withholding evidence like this at every step of the way flies in the face of that argument. Secondly, we are told that asking for all this will undermine the Prime Minister. Every single European diplomat, Foreign Minister and Head of Government we speak to will tell us what is doing more to undermine the Government than anything else: disunity in the Cabinet and people such as the Foreign Secretary coming out and calling their Prime Minister’s proposals “crazy”. That is what undermines the Government.

I want to make a final observation, because we have talked about the 2016 referendum. This is the way I see it. Yes, the country made a decision to invoke article 50 and start this process, and in some ways, it was like buying a house. We put an offer in to purchase the house. When someone is buying a house, do they immediately go from putting in their offer to paying their deposit, paying the money and completing the purchase? No, they do not—they carry out a survey to check whether the foundations of that house are sound. If the survey comes back and tells them that the foundations are unsound and the house is going to collapse, they do not go ahead and make their purchase.

That is why I believe that 650 people in this House of Commons should not be making a decision of this gravity for 65 million people. They should get a say on the Brexit deal that comes back to us in the autumn, but if Government Members are determined to deny them that, they should at least show them the survey before they insist on carrying out the purchase. Make no mistake—I say this to Members who are parroting Whips’ lines and doing the usual tribal thing—you will not be forgiven. Members of this House will not be forgiven by future generations if they simply dance to the tune of their Whips. We should think very carefully about what we are doing, because we will never be forgiven if we make the wrong decision.

Economic Growth and Employment

Debate between Angela Smith and Chuka Umunna

Wednesday 23rd November 2011 Commons Chamber

[Mr Umunna]

I will in a moment.

Last week I met one of the first-round bidders, who told me that on learning of their successful bid in April they immediately sought to progress due diligence but, despite chasing the Secretary of State’s Department, received no further documentation for four months. When they got it, they immediately responded but, again, heard nothing for another three months—until around the time that my right hon. Friend the Leader of the Opposition raised the issue of the regional growth fund at Prime Minister’s questions. I am sure that the timing was totally coincidental.

Even now, formal due diligence is not complete, and the matter is due to go to the permanent secretary’s committee for approval on 2 December.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

On that important point, the Institute of Chartered Accountants believes that one reason for the length of time taken on due diligence is the disappearance of the RDAs’ expertise in following up the process, and the efficiency savings within the Department, meaning that the skills base there has evaporated, too. Is that not the case?

[Mr Umunna]

It is clearly the case, as we saw from the evidence of the Department’s permanent secretary to the Business, Innovation and Skills Committee a couple of weeks ago.

Amendment of the Law

Debate between Angela Smith and Chuka Umunna

Thursday 24th March 2011 Commons Chamber

[Mr Chuka Umunna (Streatham) (Lab)]

Before I make my substantive point, let me make two observations, on growth and employment and on business confidence.

I do not think there is any disagreement between the two sides of the House on the need to reduce our debts. The controversial issue is the time frame within which we should do that. If we want to reduce the deficit, we will obviously need to produce growth and jobs, because people who are out of work do not pay income tax and we have to pay benefit. I believe that the cost of every 100,000 people out of work is about £500 million in benefit payments. According to the latest figures, 4,000 people in my constituency are claiming jobseeker’s allowance. I hope that we can get them back to work very soon.

The Office for Budget Responsibility’s downgrading of the growth forecast has been widely reported, but its revision of its autumn estimate of the number of jobseeker’s allowance claimants has not been commented on. The OBR revised upwards its forecast of the number of JSA claimants in this year and the following four years. For this year, unemployment has been revised upwards, and the number of people claiming JSA has been revised up by 50,000 compared with the autumn forecast. For next year, the forecast has been revised up by 120,000, and for 2013 it has been revised up by 130,000.

[Angela Smith]

Does my hon. Friend agree that such statistics say nothing about the tragedy that unemployment visits on the lives of individuals, and especially on the lives of our young people and on their prospects for the future?

[Mr Umunna]

I absolutely agree. As a former employment lawyer, I am well aware of the huge impact that loss of work has on individuals and their families.

We are entitled to ask why the unemployment forecasts have been revised upwards. That has happened because of sluggish growth, and the OBR’s autumn forecast clearly states that the sluggish growth has been caused in no small part by the extreme fiscal consolidation embarked on by the Government. Therefore, there are more people out of work, claiming benefit and not paying income tax due to the policies of this Government. The OBR has said that.

The Chancellor’s strategy on business confidence and investment is clear. As the Government hack off chunks of the public sector—causing, of course, mass public sector job losses—he says that the private sector will automatically step in to fill the gap, and he foresees private sector growth fuelled by a boom in exports and business investment. Business confidence is key, and since this Government took office confidence has fallen. The latest Institute of Chartered Accountants in England and Wales and Grant Thornton UK business confidence monitor shows a continuing downward trend in business confidence in this country for the fourth consecutive quarter. I sincerely hope that that confidence returns, because the people in the communities I represent in Streatham and parts of Clapham, Balham, Tulse Hill and Brixton will be among those who suffer.