Leaving the EU: Impact on the UK

John Lamont Excerpts

Wednesday 17th March 2021 Commons Chamber

[Alison Thewliss (Glasgow Central) (SNP)]

I beg to move,

That this House considers that the immediate economic damage, recent uncertainty and the projected long-term damage to business and trade from the UK leaving the European Union has disproven the perceived benefits of leaving the European Union; notes that the Scottish economy, specifically fishing, small businesses and manufacturing, are particularly vulnerable to market disruption; further notes that the failure of the UK Government to remain in mutually beneficial education schemes such as Erasmus+ is to the detriment of education and cultural exchange for people in Scotland and the rest of the UK; shows serious concern at the loss of EU funding and its replacement with the Shared Prosperity Fund; affirms the positive role immigration plays in society; and regrets the impact leaving the EU will have on those who wish to live, study and work in the UK.

The Brexit process has lurched from bourach to shambles to chaos—a lesson in incompetence and hubris. We are assured that, after the next hurdle, things will get better and that we will start to see all the Brexit dividends that we have been promised. So, where are we now? Less than three months after the transition period ended, the UK is facing legal action and the possibility of trade sanctions. The Office for Budget Responsibility said in its response to the Budget that the Brexit trade deal will see

“a long-run loss of productivity of around 4 per cent compared with remaining in the EU.”

Businesses that have struggled through the uncertainty of snap general elections, exit day deadlines coming and going, a rushed last-minute withdrawal deal, and a year of covid-19 now face the possibility of tariffs along with the added paperwork brought by being out of the single market. That comes hot on the heels of a record-breaking drop in trade between the UK and EU in January. The Office for National Statistics said that, after the Brexit transition period ended, UK goods exports to the EU fell 40.7% in the month and imports dropped 28.8%. Those are the largest declines since records began over 20 years ago.

The hardest hit export to the EU was food products—a growth industry in Scotland and a sector world-famous for its quality. Food and drink exports decreased by 63.6% in January this year. Seafood Scotland says that fish and shellfish exports were down 83% in January. That is devastating for the sector, which has relied on the swift movement of goods across borders. Donna Fordyce, the chief executive of Seafood Scotland, has spoken of the reputational damage this is causing, the market share being lost to countries such as Norway and the additional time and cost of processing all the bureaucracy. In evidence to the Environment, Food and Rural Affairs Committee, she said that firms were having to spend around £250,000 to £500,000 extra per year on paperwork. Seafood Scotland has talked of a “one-way trade border” that

“chokes UK exporters, but ushers in EU imports with open arms.”

That is the reality of the shoddy deal that the UK Government negotiated on Scotland’s behalf.

There was a 56.6% decline in exports in the chemical sector ahead of the UK falling out of the EU’s chemicals regulations, and manufacturing output decreased 2.3%, which the ONS directly attributed not to covid-19 but to a fall in exports caused by Brexit. Brexit has also particularly affected an export that my constituency is blessed with: an abundance of live music. Those working in creative industries are being denied the access to the EU that previous generations have enjoyed. They are being denied access to work and access to promoting Scotland and our culture abroad. We on the SNP Benches have been clear that creative professionals and those who support them must be entitled to visa-free travel.

Even for those who simply want to play music, there are barriers. My constituent Richard Traynor recently purchased a musical instrument from a German supplier with which he has dealt for many years. When it was delivered, the keyboard had warped, he suspects due to being held in sub-zero conditions at customs holding stations for a lengthy period. He had to pay customs fees to the UK Government approaching £100 for the instrument and its subsequent replacement, in addition to courier fees for a keyboard that cost £180—a real barrier to trade. Mr Traynor told me that

“the fees charged part of this has indeed been very difficult to swallow, but it does not compare to the empty hollow feeling this particular Brexit experience has left me with. I cannot believe I will no longer be able to buy from the many really nice folk I’ve traded with over the years from various places across Europe. I cannot imagine the damage this must be doing to small retailers such as folks who run small independent record labels or who run specialist shops...I guess this list could go on and on and on.”

There is growing evidence that companies in the EU are declining to send their goods to UK customers. The UK Government may not consider that a significant issue, but as my constituent points out, in so many ways, this chilling effect diminishes not just our trade but our way of life.

Visa-free travel is something that we have all taken for granted for some time. The loss of Erasmus+ and research funding has been a devastating blow to our universities, which already stand to lose so much from Brexit. The Scottish Government said from the outset that we wanted to remain a part of the scheme, and even Jackson Carlaw MSP, the former Conservative leader in Scotland, agreed. He said in the Scottish Parliament in May 2018 that

“it is not acceptable to me if the outcome of our exit from the European Union means that we can no longer participate in the Erasmus+ programme. It is perfectly clear that the direction that the UK Government is taking means that we will continue to participate.”—[Scottish Parliament Official Report, 16 May 2018; c. 61.]

Of course, we know that that did not come to pass. I do not know whether that is a reflection of the relative influence of Conservative MSPs or whether they were also being led up the garden path by their Westminster bosses.

Mon cher collègue, my hon. Friend the Member for Stirling (Alyn Smith), described the removal of the scheme as “economic vandalism” against the higher education sector. On research funding, the Wellcome Trust has said this week that the UK’s ambitions to be a science superpower

“are meaningless if they’re not backed up with funding.”

There were brutal cuts to international research this week, and we still have no clarity on the £1 billion hole in Horizon Europe. But the damage goes further than this.

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

Has the hon. Lady had sight of the London School of Economics report earlier this year which said that Scottish independence would be three times more costly than Brexit? Could she comment on that?

[Alison Thewliss]

Independence will give us many options. It will give us the opportunity to take our future into our own hands and not be reliant on the incompetence of those on the Government Benches.

Young people in my constituency—many from low-income families—and many new Scots are now being denied access to not just an experience but a European identity that previous generations of Scots have benefited from. More than 2,000 students from Scotland—the highest per head of population in the UK—take part in Erasmus+ each year.

My constituent and good friend Declan Blench is a translator working in European languages. He says that he and his colleagues are now cut off from not only our markets, because trade in services is so hamstrung by this deal, but the culture they have cultivated links with and come to love. Declan says that

“most of us learned our languages in adolescence to adulthood, precisely thanks to EU links, we didn’t all grow up in multilingual households. I was brought up by a single mum in an English-only household in a mining town—how on earth could I ever have done what I’ve done, if not for Erasmus? It is not just heartbreaking but galling—sacrificing these things for the sake of unrealistic notions of imperial grandeur, the ultimate symbol of post-imperial stress disorder that Britain suffers from so acutely.”

I could not have put it better.

I know that many across the House have benefited from studying and working abroad. It is wholly unacceptable for Tory Members to pull the ladder up behind them. The hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) recently admitted as much on the BBC “Debate Night” show. He said to a young person who asked a question:

“You and everybody else coming through right now will not have the benefits that I had through Erasmus, work, study abroad…But am I going to sit here and say that Brexit is perfect and your generation is going to reap the benefits? No I’m not. Because you’re not frankly at the minute. And I can see that.”

A moment of honesty from the Tories, but what a statement that is—that young people are not going to benefit in the way that people on the Tory Benches did; that they will take that away from the generations yet to come.

The UK Government’s replacement is a pale shadow of Erasmus+. There has been no meaningful consultation with devolved Governments on the Turing scheme, which seems to have been cobbled together at the last minute, with all the due consideration one would expect from this inept UK Tory Government. It will not pay tuition costs for students. Living costs have been cut to a fifth of what they would have previously been. It does not encompass youth work, culture, sport and vocational schemes, which are a huge part of the Erasmus+ scheme and very important to people in Scotland. We also now know that it will not cover apprentices or trainees not affiliated with further education colleges, and it will not cover teachers, youth workers, volunteers and many more who would previously have been eligible. LEAP Sports in my constituency, which works with LGBTI people, found Erasmus+ invaluable and forged international links, which helped to build the confidence and the skills of the people they support. For example, the three-year Outsport project on preventing violence and discrimination in sport based on sexual orientation and gender identity is vital work as we seek to challenge prejudice and make sport more inclusive for everyone.

Scotland’s economy has its own specific needs that are not being met by this Eton mess of a Government. We have an ageing population. Without inward migration, our population would be in decline, with more deaths than births. Scotland’s Economy Secretary Fiona Hyslop announced “A Scotland for the Future” this week, which examines the significant population challenges our country faces.

--- Later in debate ---

[John Lamont (Berwickshire, Roxburgh and Selkirk) (Con)]

I listened very carefully to the opening remarks of the hon. Member for Glasgow Central (Alison Thewliss). What I find quite extraordinary about the SNP is its ability to hold to two completely incompatible and inconsistent policies at the same time. We recently concluded the SNP’s first debate of this afternoon, in which it argued that Scotland should be separate from the rest of the United Kingdom. It has now introduced a debate to complain about the economic impact of the UK leaving the European Union. A total of 60% of Scotland’s trade is with the rest of the UK, worth more than £50 billion, against £16.6 billion in exports to the EU, yet the SNP wants to rip Scotland out of that United Kingdom economic union. More than half a million Scottish jobs are linked to trade with the rest of the United Kingdom, yet the SNP continues to obsess about taking Scotland out of the United Kingdom.

It is not surprising that so many people are baffled when, on the one hand, the nationalists argue for Scotland’s separation from that political and economic union, yet, on the other, they want even closer ties with another political and economic union—separation from the UK, but yet closer ties to Brussels and the EU.

I do not need to remind the House that the SNP tried to impose an economic shock on Scotland by recklessly voting for a no-deal Brexit at the end of the transition period with the EU. The EU-UK trade deal is worth £653 per person over a no-deal Brexit, according to the Scottish Government’s own analysis, yet SNP MPs trooped into the Lobby to vote for a no-deal Brexit. They voted for a no-deal Brexit and all the economic challenges that that would undoubtedly have brought. They voted for a no-deal Brexit in spite of the financial hardship that would bring to families in Scotland. They also voted for a no-deal Brexit despite the Federation of Small Businesses, the Confederation of British Industry, the British Chambers of Commerce, the National Farmers Union of Scotland, the National Sheep Association and many other organisations, as well as our constituents, urging MPs in Parliament to back the UK-EU trade deal. So it is a bit rich to hear them squealing today about the impact of Brexit when they voted for a no-deal Brexit.

We should not be surprised that SNP Members voted against the UK-EU trade deal or that they supported a no-deal Brexit. In fact, they have a track record of voting against trade deals, even those from which we benefited as members of the European Union, some of which this Government have rolled over for the benefit of the UK and Scotland. SNP Members complain about our exit from the EU, yet they failed to support or abstain on countless trade deals that we have secured. They voted against trade deals with Canada, South Africa and Korea and abstained on trade deals with Japan and Singapore. I would welcome an intervention from one of the SNP Members here today to tell us which single trade deal the SNP has supported in the past 15 years. No? Nothing. They are not favour of trade or of jobs; they are not in favour of all the families and people we represent who are dependent on trade in Scotland. They are against trade and against the jobs that are supported by trade—[Interruption.] I will be happy to take an intervention from the hon. Member for Kilmarnock and Loudoun (Alan Brown) if he wishes to tell me which trade deal he supports. No? I didn’t think so.

We are already witnessing the profound economic benefits that Scottish industry is having from our new international trading relationships, and I very much welcome that. It is clear that SNP Members are not in favour of independence; they want closer ties with Brussels. They want to take Scottish fishermen back into the hated fisheries policy and to take farmers back into the common agricultural policy. They do not want independence; they just want closer ties with Brussels.