EU Membership: Economic Benefits

Debate between John McDonnell and Angela Rayner

Wednesday 15th June 2016 Commons Chamber

[John McDonnell]

I will come on to that subsequently.

With regard to trade, the EU is Britain’s largest export market by a long way. Some 44% of UK exports go to the EU, worth £223 billion. That is more than double the value of exports to the US, and more than 10 times the value of exports to China. That just gives an idea of the scale of the impact of the EU on our economy. It is argued that withdrawal from the EU will have no implications for jobs, investment and trade, almost as though things will just carry on as before. That flies in the face of experience of all other trade relationships. Access to the single market would have to be renegotiated. That would take at least two years, and more likely the seven to 10 years predicted by others. The climate of uncertainty created would undermine the critical factors investors and decision makers require when they invest for the long term: certainty, security and stability.

We have seen only this morning in Rolls-Royce the latest example of a company expressing its doubts about its long-term investment plans if Brexit goes ahead. We have also seen competitors across Europe welcoming with open arms those companies considering relocation if the decision goes to Brexit.

[Angela Rayner (Ashton-under-Lyne) (Lab)]

In my constituency people on the doorsteps are talking to me about two things: the economy and immigration. Does my hon. Friend agree that leaving Europe would affect only one of those things—our economy, which will be negatively affected? Leaving will do nothing around immigration.

[John McDonnell]

I will come on to that later in my speech, but the evidence is clear: the impact on our economy overall will set us back a number of years. Brexit will undermine our economy and undermine the futures of our families and communities, while at the same time doing nothing with regard to migration overall.