Backing Business to Create Economic Growth
Debate between Dawn Butler and Ben Coleman(3 weeks, 3 days ago)
Commons ChamberRead Full debate Read Hansard Text Read Debate Ministerial Extracts
Ben Coleman
I am most grateful, Madam Deputy Speaker. Such officials as gave that information could have looked again.
Dawn Butler
Does my hon. Friend remember when a former Tory Prime Minister gave a guarantee to small businesses that there would be no paperwork to trade with the EU, because they recognised how much of a disadvantage and how problematic it would be?
Ben Coleman
It will come as no surprise to anybody that what the previous Prime Minister said and the truth perhaps did not have the closest of relationships.
It is absolutely no surprise, looking at what has happened, that the London School of Economics found that new border checks and paperwork pushed up UK prices by more than 7% between 2019 and 2023, adding around £250 to our grocery bills. It is also no wonder that 20,000 small businesses, all with fewer than 10 employees, have simply stopped exporting to Europe—not by choice but because the costs got too high.
The war with Iran is making things even worse. It is pushing up energy and food costs around the globe. Our country’s economic security demands that we do all we can to reduce business costs and limit price increases, working with our European allies. That is where the European partnership Bill comes in. For months now, the Government have been negotiating a new sanitary and phytosanitary—food and drink—agreement with the EU. This would sweep away the certificates, checks and fees that have added so many costs to food and agricultural trade with Europe. The aim is to wrap that up by the next EU summit, but to bring it into force we need the European partnership Bill.
Under the SPS deal, multi-page export health certificates, phytosanitary certificates, port health authority costs and sampling costs would all go. The Bill will support that. It will also provide the framework to implement an emissions trading agreement, which will link the UK’s emissions trading scheme with that of the EU. That will give us a larger, more stable carbon market, support investments in new technologies and help us to decarbonise more efficiently. Together, the food and drink deal and the emissions trading agreement could add nearly £9 billion to the UK economy by 2040.