Oral Answers to Questions

Gerald Jones Excerpts

Tuesday 18th April 2017 Commons Chamber

[Toby Perkins (Chesterfield) (Lab)]

7. What recent assessment he has made of the potential effect of the UK leaving the EU on the public finances.

[Gerald Jones (Merthyr Tydfil and Rhymney) (Lab)]

8. What recent assessment he has made of the potential effect of the UK leaving the EU on the public finances.

[The Chancellor of the Exchequer (Mr Philip Hammond)]

We’ll see how lucky, Mr Speaker.

The Government have undertaken a significant amount of work to assess the economic and fiscal impacts of leaving the EU, and they continue to carry out that work. This is part of a continuing programme of analytical work covering a range of possible exit scenarios, including sectoral analysis, but I have to say to the House that we are seeking the best possible deal for the United Kingdom, recognising that there is a range of possible outcomes to the negotiations, and the work being done reflects this. The Government have also committed to keeping Parliament informed, but it would not be appropriate to publish analysis that risks undermining our negotiating position.

--- Later in debate ---

[Mr Hammond]

In terms of the effect on the public finances, the decision that the Prime Minister made today is very much in the national interest, to strengthen her hand as she goes into the negotiation with the European Union, to provide a clear mandate for the type of exit that she set out in the letter she wrote to President Tusk two and a half weeks ago, and to ensure that the UK can negotiate its exit from the European Union, execute that exit, and then transition to the new arrangements with a clear run before the next general election.

[Gerald Jones]

After that party political broadcast on behalf of the Conservative party, may I ask the Chancellor a very serious question? Many billions of pounds of EU structural funds are invested annually in the UK, particularly in our deprived areas and regions. Wales, and Merthyr Tydfil and Rhymney, have benefited significantly from this funding. What steps will he take to replace this essential investment when we leave the EU?