Brexit: UK-EU Relationship

Baroness Valentine Excerpts

Thursday 1st December 2016 Lords Chamber

[Baroness Valentine (CB)]

I will limit my remarks today to the impact of our relationship with continental Europe on London’s talent mix. London is possibly the most successful and concentrated service-sector economy in the world, and given that it contributes nearly a third of the nation’s tax take, it is important that it continues to flourish.

There are roughly 1 million mainland Europeans in London, but only 19% of them would have the right to stay under existing visa rules without their EU rights. Two things worry me: first, our moral duty to these people, and secondly, the impossibility of running the economy in the absence of willing and able workers such as these. The official Vote Leave campaign proposed that there should be,

“no change for EU citizens already lawfully resident in the UK. These EU citizens will automatically be granted indefinite leave to remain in the UK”.

Polling from ICM for British Future found that 84% of the British public supports letting EU migrants stay, including three-quarters of leave voters.

I am concerned about the impact on the economy of removing European workers both now and post-Brexit. In some of London’s high-growth small businesses, particularly in technology, often one-third to one-half of staff come from all over Europe. Research from Oxford University’s Migration Observatory found that around two-thirds of European workers in the financial and professional services sector across the UK would not have the right to stay under existing visa rules.

My contention is that not only do we need to continue to welcome the global talent, including students, that supports London’s position as the most highly skilled city in the world, we also need for the foreseeable future to attract those with medium-level skills in cyclical industries such as construction, and in sectors where the majority of the labour force is currently foreign-born. Today we do not have enough people to build the houses we need, even with European workers. Furthermore, London attracts more international visitors than any other city, and global tourism is growing. However, EU citizens make up half the labour force.

In the long term, there is no doubt that we can train more locals—for example, now that we have the somewhat overdue but welcome decision on airport capacity, the noble Lord, Lord Blunkett, is leading a taskforce to develop talent from all around the country, and HS2 has its training college at Doncaster—but none of this can happen overnight. Business needs time to plan, invest and resolve challenges, and the education system needs to do better at providing people with the right skills. In the meantime we need transitional arrangements with Europe that recognise that there will be a continuing need for overseas workers with a range of skills while we seek to train sufficient willing and able people to meet our economic needs, and we urgently need to clarify the status of those continental Europeans already here.