Leaving the EU: No Deal

Debate between Keir Starmer and Hilary Benn

Wednesday 19th December 2018 Commons Chamber

[Keir Starmer]

I am grateful for that powerful point, and it applies to the whole of manufacturing. In the last two years, I have tried to visit all the major manufacturers across the UK and see for myself the systems they are running. Automobile manufacturing is a classic example, with goods coming in from the EU all the time. Those goods are tracked, so that it is known to the hour when they will arrive. In some operations, the components arrive four hours before they go on the production line. That is why any interruption of the current arrangements poses a real threat to manufacturing and why what is said about Dover not being ready for years, not months, is significant for manufacturing.

[Hilary Benn (Leeds Central) (Lab)]

My right hon. and learned Friend is making an extremely powerful case. Does he share my puzzlement—nay, exasperation—that some people in government and on the Government Benches appear to think that they know more and better about the implications of no deal than the businesses that make things, export things, import things and transport things? Those businesses have formed a queue to meet all of us, and no doubt Ministers, to express their concern about what this will mean. Does that not show just how irresponsible it is of the Government to suggest that this could happen?

[Keir Starmer]

I could not agree more. I have spoken to hundreds of businesses across the whole of the UK, either one on one or in small groups—I am not talking about halls full of businesses—and I have not come across any business that says that no deal could be a satisfactory outcome. Anybody who suggests that businesses in some way would support that approach needs to point me to the businesses they have been talking to, because I have obviously been talking to lots of businesses that they are not talking to. In every case, when they lay out their concerns to me, I faithfully ask them whether they have said the same to the Government, and I ask them to say the same to me as they say to the Government. On a number of occasions, I have made it my business, in a friendly way, to point the Brexit Secretary to businesses that have talked to me and suggest he has a conversation with them.

EU Withdrawal Agreement

Debate between Keir Starmer and Hilary Benn

Tuesday 18th December 2018 Commons Chamber

[Keir Starmer]

I am sure that the hon. Gentleman will forgive me for my caution in taking advice from the Government on when the Opposition should table a motion of no confidence in the Government. Last week, I heard plenty of Conservative Members say, “Bring it on.” In the role that I currently occupy, many people on both sides of the House give me their opinions all the time, and very rarely do two people agree on the way forward.

It is wholly unacceptable to delay the meaningful vote for another month in the knowledge that there is no realistic chance of delivering material changes to this deal. Yesterday, the right hon. Member for Loughborough (Nicky Morgan) said in this House that the Prime Minister is

“asking the House to accept a deferral for several weeks of the meaningful vote on the draft withdrawal agreement, on the basis that further assurances can be agreed with the European Union, but there is nothing in what she has said today or in what has been reported from the EU Council to suggest that those further assurances are likely to be given.”—[Official Report, 17 December 2018; Vol. 651, c. 540.]

That is the problem. That is why, rather than having this debate today, the Government should be putting their deal to the House, because if that deal is defeated, everybody then needs to put the national interest first. We need to confront what the achievable and available options are and decide, as a House, what happens next in a way that protects jobs and the economy.

But what we hear from the Government is the opposite: delay over a meaningful vote, and then the distraction of no deal, hence today’s headlines about £2 billion for no-deal planning. Talking up no deal has always been misguided and, in my view, deeply irresponsible. The Treasury estimates that a no-deal outcome would mean a 9.3% decline in GDP over 15 years. It would see every region of the UK worse off. It would mean 20% tariffs on agri-foods and significant tariffs on manufactured goods. It would mean no common security arrangements in place, and a hard border in Northern Ireland. It would be catastrophic for the UK. That is why no deal has never truly been a viable option. It is a political hoax, and I think that, deep down, the Government and the Prime Minister know it. I know from personal experience how seriously the Prime Minister takes the security arrangements of the United Kingdom, and to put ourselves in a position where they would be jeopardised is not, I think, something that, deep down, she thinks could possibly be acceptable for this country.

[Hilary Benn]

My right hon. and learned Friend is making a most forceful case. I agree that the Government understand the risks just as well as we do. Given that, what possible purpose does he think is served by the Government continuing to pretend that they are prepared for the country to go over the edge of a cliff at the end of March? Would it not help, in this crisis we face, if the Government said, “We’re not going to let that happen”? Then the alternatives that we will have to consider if the deal is defeated would become even clearer than they can be for as long as no deal appears to exist as a possibility when every single one of us in this Chamber knows that it cannot happen.

[Keir Starmer]

What I think is happening—it saddens me to say so—is that the Government are running down the clock in order to put maximum pressure on Members to face what the Government will present as a binary choice between the proposed deal that is before us and no deal. That is the only purpose left in this delay. Yes, it would help a great deal if we could have clarification now that no deal is not a viable option. It would allow us to focus on other options and to take the necessary steps to advance those options in the time that is available. I call on the Secretary of State to give that clarification if he feels able.

If the Government had ever been serious about delivering a no-deal outcome, they would not be panicking like this at the 11th hour—they would already have had extra staff trained and resources in place. They would already have had the vast infrastructure that would be needed at UK borders and ports.

It is all very well those on the Government Front Bench shaking their heads—[Interruption.] If they will just listen, I will quote their own Chancellor, who said two weeks ago in response to a question from the hon. Member for Dover (Charlie Elphicke) that

“if we were to end up having a WTO-type trading arrangement with the European Union”,

that

“would involve some very significant infrastructure works that could not be done in a matter of months; they would take years to complete.”

If I was making that point, people might say, “Well, that’s just the Opposition,” but that is the Chancellor’s assessment. When the Chancellor says that, what is the answer from the Prime Minister or those on the Front Bench? What is the answer from the Government?

In a report in October, the National Audit Office said:

“The government does not have enough time to put in place all of the infrastructure, systems and people required for fully effective border operations on day one”,

and that

“organised criminals and others are likely to be quick to exploit any perceived weaknesses or gaps in the enforcement regime. This, combined with the UK’s potential loss of access to EU security, law enforcement and criminal justice tools, could create security weaknesses”.

The NAO has also said—this is a serious point that I have raised a number of times but not heard an answer from the Government on:

“If customs declarations are required for trade between the UK and the existing EU, HMRC estimates that the total number of customs declarations could increase by around 360%, from the 55 million currently made on non-EU trade to 255 million.”

That is an increase in customs declarations from 55 million to 255 million three months from today, in a no-deal Brexit. What is the answer to that?