No-deal EU Exit Preparations

John Baron Excerpts

Wednesday 20th March 2019 Commons Chamber

[Mr John Baron (Basildon and Billericay) (Con)]

(Urgent Question): To ask the Prime Minister if she will make a statement on no-deal Brexit preparations.

[The Parliamentary Under-Secretary of State for Exiting the European Union (Chris Heaton-Harris)]

I thank my hon. Friend for his urgent question and congratulate him on securing your approval for it, Mr Speaker.

The Government have always been clear that leaving the European Union without a deal is not an outcome that we want. Last week, Parliament voted against leaving with no deal, signalling a clear majority against such an outcome. However, the legal default is that the UK will leave the EU without a deal unless an alternative is agreed; any agreed extension would not change that. A longer extension would also entail holding European Parliament elections in the UK. As the Prime Minister stated in her letter to Donald Tusk, we

“do not believe that it would be in either of our interests”—

the UK’s or the EU’s—

“for the UK to hold European Parliament elections.”

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[Chris Heaton-Harris]

Thank you, Mr Speaker; I apologise to my hon. Friend.

The Government have undertaken significant action to prepare for a potential no-deal scenario. We have published 450 pieces of no-deal communications since October 2018, including information on reciprocal healthcare arrangements with the EU, on driving in the EU after exit, and even on how to take a pet abroad. We have contacted 150,000 businesses that trade with the EU to help them to get ready for no-deal customs procedures. We have held meetings, briefings and events with stakeholders across the economy, including around 300 engagements in the past month alone. We have responded to stakeholder feedback to make sure that communications are clear by updating approximately 1,300 pieces of gov.uk content based on their input.

More than 11,000 people are working on EU exit policy and programmes across the Government. We have launched a public information campaign, which includes information on gov.uk, to help citizens and businesses to prepare for leaving the European Union. TV adverts started today and radio, press and outdoor poster advertising are ongoing. Furthermore, the Treasury has provided £4.2 billion for EU exit preparations, including preparations for a no-deal scenario, and £480 million has been allocated to the Home Office to ensure that it is fully prepared.

Getting ready for this scenario depends on action not only from the Government, but from a range of third parties, including businesses, individual citizens and the European Union itself. Despite Government mitigation, the impact of a no-deal scenario is expected to be significant in a number of areas. Leaving the European Union with no deal is the legal default until Parliament passes a deal or agrees on an alternative. We are focused on achieving that, but until it has been achieved, we will continue to prepare for no deal and we advise businesses to do the same.

[Mr Baron]

I thank the Minister for that response. It is important that the Government recognise the current position. Whatever the possibilities for how Members may vote in this place or how the EU may respond to requests for extensions, he is absolutely right to suggest that the current legal default position is that the United Kingdom will be leaving the European Union on 29 March, with or without a deal. It is important in more than one sense that those on the Front Bench recognise that. The narrative that seems to be emerging from No. 10 is that Parliament has not expressed its view as to what should happen. I would suggest to the Minister that it has. In February 2017, by a majority of 384, the House clearly said that with or without a deal we would leave on 29 March 2019. There was no equivocation about; it was black and white.

The Government have said they are making adequate preparations. Many of us on the Government Benches—and, indeed, on the Opposition Benches—have questioned the Government about those preparations. We know that billions of pounds have been spent, and we have had assurances from the Government, including from the Dispatch Box and in Committee. On 12 February, I asked the Prime Minister if she could

“reassure the House that should we leave on 29 March on no-deal WTO terms, we are sufficiently prepared”.

She answered very directly:

“We are indeed. We have ramped up our preparations. We are continuing our preparations for no deal.”—[Official Report, 12 February 2019; Vol. 654, c. 752.]

I applied for this urgent question because media reports, including some emanating from this place, suggesting that a no-deal Brexit would prove a profound economic shock mirror the incorrect warnings before the 2016 referendum and are causing—[Interruption.] This is an important point for Members to appreciate, as we sit in this Westminster bubble. These pronouncements are causing concern across the country. It is easy for Opposition Members to say, “Oh, don’t worry about it”, but for a lot of people sitting in their homes, these dire predictions of economic gloom, which are unfounded, are causing concern.

I remind the Minister that prior to the 2016 EU referendum there were dire predictions of 500,000 extra unemployed people that proved unfounded—so much so that the Bank of England, among others, had to apologise. We have had record low unemployment, record manufacturing output and record inward investment. I suggest that economic reality trumps predictions any time. In order to reassure and better inform the public, will the Minister detail to Parliament the extensive preparations the Government have made for a no-deal exit? Especially given the proximity to 29 March—just a week away—the Government need to reassure people that they are prepared, having spent two years and billions of pounds on no-deal preparation. I look forward to hearing what he has to say.

[Chris Heaton-Harris]

I found it interesting that my hon. Friend was barracked by Opposition Members for pointing out how strong our country’s economy was. I would have thought they would be proud of that.

I hope that in my opening answer I gave the House a sense of how much preparation the Government have done since August 2016, although preparations have of course been ramped up in the last few months. I will list a handful of points: more than 550 no-deal communications have been sent out since August 2018; we have had 300 stake- holder engagements since February; we have been signing international agreements with our trading partners and rolling over others; 11,000 people are working on EU exit policy and programmes across Government; a number of IT programmes are ready to go should we need to activate them; and we have published the HMRC partnership pack containing more than 100 pages of guidance for businesses on process and procedures at the border in a no-deal scenario. The Government have been preparing assiduously and quietly behind the scenes for no deal, but we want to get a deal over the line; that is the most important thing for us.

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[Mr Speaker]

Order. I think that the hon. Member for Huddersfield (Mr Sheerman) is concerned, but the hon. Member for Basildon and Billericay (Mr Baron) is back in the Chamber. I do not think that I need to dwell on the matter. Suffice it to say that there can, in extremis, be a reason why someone has—very, very, very briefly—to leave the Chamber. When the call of nature sounds, that person cannot pretend to be deaf. I do not say that in a pejorative spirit; I simply mean that one cannot pretend not to be aware of the immediate requirement.

[Mr Baron]

I was relieving myself, Mr Speaker. [Laughter.]

[Mr Speaker]

I was trying to signal as much in a somewhat more tactful and seemly manner, but the hon. Gentleman has now blurted out the truth, and the nation is aware of what was his requirement. As he has now returned to the Chamber, he can beetle back to his seat and listen to the remainder of the exchanges.

[Mr Baron]

I will do so. Thank you very much, Mr Speaker.

[Mr Speaker]

Very good. Well done.