Economy and Jobs

Chuka Umunna Excerpts

Thursday 29th June 2017 Commons Chamber

[Chuka Umunna (Streatham) (Lab)]

I congratulate those who have given maiden speeches. I rise to speak to amendment (g), which stands in my name and the names of my hon. Friend the Member for Cardiff South and Penarth (Stephen Doughty) and many other Members, on the biggest economic issue of our time—Brexit.

I am proud to represent the borough that scored the highest remain vote in the country. In my seven years in this place, I cannot recall any issue provoking such a strong and emotional reaction from my constituents, particularly the young, who feel that last year’s referendum robbed them of opportunities in the future that others have enjoyed and will now be denied to them. I accept the result of the referendum, but whether people voted leave or remain, it is clear from the election that the idea that there is one way of withdrawing from the European Union is dead in the water. The Leader of the Opposition is absolutely right to say that we do not need to withdraw in a way that destroys people’s jobs. My right hon. and learned Friend the Member for Holborn and St Pancras (Keir Starmer) has already powerfully made the case against leaving without a deal and highlighted the disgraceful treatment of EU citizens.

I therefore want to focus my comments on why I believe that membership of the single market is important. In my view, access to it is both different from and inferior to membership. If we leave the single market, whatever the level of access negotiated, working people across Britain will be worse off and revenue to the Exchequer will plummet. There is a clear economic argument for this. The Institute for Fiscal Studies has forecast that leaving the single market could cause a £31 billion hit to the public finances, making it all the more difficult to end years of austerity.

But above all, for me, there is a clear social justice argument. The single market is more than a free trade zone. It provides a framework of rules that protects people from the worst excesses of capitalism and unfettered globalisation. If we have mere access to the single market, we are talking about leaving this framework of rules. These are EU laws that outlaw discrimination in the workplace, give us a multitude of rights at work, produce regulations to protect our environment, and give protections to consumers. Let’s get real about this. Some say that we could have all these things on our own—that we do not need to be part of a single market. However, large multinational companies work across borders to maximise their profits and reduce these protections, and one national Government cannot take on the power of these people alone. We need only look at the example given this week by the European Commission in slapping a record £2.1 billion fine on Google because it has been seeking to rig the marketplace in its favour. In the end, the social justice arguments are clear.

There are three main arguments advanced against this. The first argument is that we cannot restrict immigration while being in the single market. That is rubbish. We can restrict immigration now, but we choose not to. The second is that the state aid rules will stop us having proper industrial strategies. Tell that to Germany, which has an investment bank, or France and the Netherlands, which use procurement to protect their industries.

The final issue is that of sovereignty and of us being a rule receiver and not making the rules. If we want to access the single market, we will have to comply with its rules. If we are a member, at least we have influence. I say to the Government: yes, they can look at other counties—Norway and the rest—as a guide, but we are the United Kingdom. We are the fifth biggest economy in the world, the second biggest military power, the home of Shakespeare and we created the world wide web. Let us be ambitious and get the best deal for future generations in this country.