Brexit: North-East of England

Baroness Quin Excerpts

Wednesday 9th May 2018 Lords Chamber

Asked by

[Baroness Quin]

To ask Her Majesty’s Government whether they intend to undertake further work on the impact of Brexit on the economy of the north-east of England.

[The Minister of State, Department for Exiting the European Union (Lord Callanan)]

My Lords, we are committed to getting the best possible deal for the United Kingdom, a deal that works for all parts of the UK, including the north-east. The Government are undertaking a wide range of analyses, looking at the implications of UK withdrawal from the EU. We continue to engage with businesses and industry bodies from all sectors of the economy and all regions and nations of the UK in order to inform our negotiations.

[Baroness Quin (Lab)]

My Lords, only a year or so ago the Brexit Secretary was saying that he could get a deal that would deliver exactly the same benefits as those we enjoy under EU membership, yet we now know from the Government’s impact assessments, which they sought to hide from us in February, that the picture is very different. The north-east, in particular, is forecast to be the worst hit, taking an 11% hit to its economy even under the Government’s preferred approach and, if we exit without a deal, incurring an 18% hit. These figures have been backed by the London School of Economics, Birmingham University, the Durham University Business School and others. So the question is very simple and straightforward: does the Minister accept his Government’s assessment of the situation and the consequences of his approach to Brexit on the region of the country that both he and I belong to?

[Lord Callanan]

Of course, I share with the noble Baroness ambitions for the north-east of England. I thought she was being unduly pessimistic. She might have recognised that unemployment in the north-east is down to 5.2%, the lowest rate for 40 years. The north-east economy is doing extremely well. It is an exporting area: exporting to Europe, yes of course, but also to other parts of the world. We are committed to getting the best possible deal for frictionless trade. The analysis that she referred to was an incomplete analysis. Importantly, it did not analyse the type of deal we are seeking, which is a full and comprehensive free trade agreement, the most ambitious anywhere in the world, with the EU.