EU Membership Referendum: Impact on the UK
Debate between Bernard Jenkin and Lisa Smart(2 days, 10 hours ago)
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Lisa Smart (Hazel Grove) (LD)
It is a pleasure to serve with you in the Chair, Ms Butler. I congratulate the hon. Member for Perth and Kinross-shire (Pete Wishart) on securing the debate and on the vim and vigour with which he introduced it. Ten years on, we can now see the devastating impact that the referendum had on this country—not just on our economy, but on the integrity of our democracy and political debate. Since June 2016, we have had seven Prime Ministers in a decade. We have had a Parliament that could not resolve the question in front of it, a Government who prorogued this House unlawfully to get round it and a public who have watched the whole spectacle and drawn the obvious conclusion that our political system is broken.
The Conservatives put a question to the country that they had not thought through. They lost control of the answer and then spent years arguing among themselves about what it meant while the rest of the country paid for it. Into that vacuum walked the people who benefit from it. The hon. Member for Clacton (Nigel Farage) has built an entire career on a promise he never had to deliver and now takes no responsibility for. He and others like him told the public that leaving would let us take back control of our borders. Since then, over 200,000 people have crossed the channel in small boats. Before the referendum, there were no small boat crossings. They created the conditions, and they now travel to Dover to be photographed pointing at the result.
Sir Bernard Jenkin
The referendum was in 2016, but all the legalities of membership of the European Union, including the Dublin convention, applied until 2021. The small boat crossings were rocketing before Brexit. They have nothing to do with it.
Lisa Smart
My point is that there were no small boat crossings before the 2016 referendum. I think the hon. Gentleman is agreeing with me on that.
British GDP is between 6% and 8% smaller than it would otherwise have been. Investment has been reduced by between 12% and 18%. Employment and productivity are each down by 3% to 4%. Estimates from the House of Commons Library, those well-known doughty remain campaigners, put the cost to the Exchequer somewhere in the region of £90 billion a year in tax revenue that is simply not there. Every Minister who stands at the Dispatch Box and says that money is not available is describing a hole that has been enlarged as a result of Brexit. That is £90 billion a year that could be used for projects across the country to support our constituents. It could be used to fund renovations to my Stepping Hill hospital, the rail services my constituents wait for every morning or cleaning up our waterways so that sewage stops being pumped into the Goyt or the Mersey.
My hon. Friend the Member for Wokingham (Clive Jones) mentioned the nearly 2 billion extra pieces of paperwork that now sit on British firms—enough to wrap around the world 15 times. Tighter border restrictions with our European neighbours devastated our hauliers, with more than double the number of insolvencies seen between 2021 and 2025 than in the previous five years. In our food and farming sector, exports to the EU have fallen by 22% since 2018, which is close to £4 billion in lost trade.
The question for the House is, “What do we do now?” Ministers know that the relationship with Europe is the biggest lever available to them. Their response so far has been to make small adjustments around the edges of a bad deal. They have ruled out the single market and a customs union, drawing red lines around two things that would make a material difference.
On fisheries, the Government have made things worse. The EU came asking for a five-year extension to the arrangements in the 2020 trade and co-operation agreement, and this Government agreed to 12 years. That is a loss worth around £6 billion over the period at today’s prices, down not only to the previous Government but to this Labour Government. Being timid is a political choice, and it has political consequences. When mainstream parties refuse to name the cause of a problem, the field is left to those who offer easy answers and no substantive solutions.
The Lib Dems are offering something different. We want a growth and defence partnership with Europe. That would mean joining the single market and a UK-EU customs union, so that our businesses can trade again without drowning in red tape. It would mean a proper UK-EU defence pact. We currently sit outside EU decision making and outside funding streams such as the European Defence Fund and the Security Action for Europe loan programme, at the precise moment when Vladimir Putin is testing this continent’s resolve and the White House is reneging on international commitments. We want a new European security council, British participation in SAFE and a European rearmament bank to support collective rearmament. Our security does not stop at Dover, and it never has.
We are also calling for the UK to join the EU’s migration and asylum pact, so that we can return people who arrive by small boat to the first EU country they entered, and so that we can see the biometric data that tells us whether someone has already been refused asylum elsewhere. That is how we actually take back control of our borders, rather than shouting about it on a beach.
Finally, we should fix the politics that produced this. A system that hands total power to a party with a minority of the vote and then dares it to govern for everyone will keep generating exactly this kind of instability. The Liberal Democrats want proportional representation through the single transferable vote at local and general elections. We want a second Chamber with a democratic mandate. We want the big money taken out of politics. We want the Electoral Commission protected from ministerial direction and serious measures against foreign interference in our elections and referendums.
From the cost of living to our broken public services, the result of the 2016 EU referendum stands in the way of making things better, and we have to fix it. Ten years on, it is clear that it has negatively impacted the UK, and I would be really grateful if the Minister could tell us today just what it would take for this Government to move their red lines.