UK’s Exit from the European Union

Layla Moran Excerpts

Monday 24th April 2023 Westminster Hall

[Stephen Farry (North Down) (Alliance)]

It is a pleasure to serve under your chairmanship, Mr McCabe. I will make some specific comments in relation to Northern Ireland shortly, but I will first make some common points that apply UK-wide. Before getting to those, outside the Northern Ireland issue, which has been prominent in recent months and years, it is rare that we have a more general debate in this place about Brexit itself. Brexit has fundamentally changed so much in relation to the UK economy and our ability to influence transnational issues, such as crime and the environment. It has diminished the UK’s international standing. The UK is not as powerful a voice on the world stage as it was previously, when the European Union served to amplify that voice.

It is useful to drill down into the notion of sovereignty. For me, sovereignty is about the ability to do things, rather than some abstract concept. But even if we look at the abstract concept of sovereignty, that the UK was able to enter the European Union and also leave it proves that the UK had sovereignty all along. It was through pooling that sovereignty within the European Union that we were able to deliver collective outcomes for people right across Europe and, crucially, for people within the UK.

[Layla Moran (Oxford West and Abingdon) (LD)]

On that point, the hon. Member for Gravesham (Adam Holloway) mentioned that the laws that the EU created were not ones we chose. The fact is that we had MEPs who were on those commissions and the committees that decided those laws. Actually, the British voice was a leading light in many of the changes that were enacted. There were certainly changes that needed to be made in regards to the processes, but we had a seat at the table.

[Stephen Farry]

I agree. We will soon discover that in many respects, by design the UK will have to be a rule taker. It is in the fundamental interest of the UK economy to follow rules that are essentially set at the European level, but we will not have the important say that we had previously.

Like the hon. Member for Oxford West and Abingdon (Layla Moran) and many other colleagues in today’s debate, including the right hon. Member for Leeds Central (Hilary Benn), I sit on the UK Trade and Business Commission. Almost every week we hear evidence from a range of experts and other stakeholders who set out huge concerns about the impact of Brexit on their sectors. It is accurate to say that the UK economy has seen seriously constrained growth as a consequence of Brexit. Of course, there are other issues, but Brexit is by far the major stand-out factor that differentiates the UK from its main competitor nations in the developed world.

The trade deals that are happening around the world will never compensate for the increased trade barriers that we have erected with our closest and biggest external trading partner. It is one thing to say that the European Union is not growing at the same rate in terms of international trade; having a trading partner that represents 30% to 40% of our international market compared with a partner that grows from 0.1% to 0.2%, while maybe a radical change in the level of trade on the surface, does not amount to the same impact on UK business. Also, we have discovered that freedom of movement applies in two directions. Who knew? Constraints on the ability of others to come here applies to UK citizens seeking to move overseas.

I want to focus on the impact on Northern Ireland. In some ways, I feel slightly humbled in this respect because we have had, at the very least, the benefit of the Windsor framework. I put on the record again my appreciation for those who were involved in reaching that agreement, both on the UK side and in the European Commission. At best, the Windsor framework is a soft landing for Northern Ireland, but Northern Ireland will still suffer many of the same problems that the UK as a whole is facing from Brexit, as well as some further particular challenges that are unique to our own geographical situation on the island of Ireland.

Perhaps the most apparent consequence is seen in our governance. I have no doubt that my colleague, the hon. Member for Strangford (Jim Shannon), will express a different view on this when he speaks, but for me our governance worked based on sharing and interdependence. It relied upon the joint membership of the UK and Ireland within the single market and customs union, and that in turn allowed us to have those interlocking relationships, within Northern Ireland, on the island of Ireland and within the UK, allowing a balance of different identities to be expressed without that much encumbrance. Brexit—particularly a hard Brexit—will threaten some people’s sense of identity and create some degree of economic friction. The Windsor framework has gone a long way to mitigate some of that, but it only applies to goods and not to the other fundamental freedoms around services, capital and the freedom of movement.

--- Later in debate ---

[Layla Moran (Oxford West and Abingdon) (LD)]

It is a pleasure to serve under your chairmanship, Mr Dowd. I am grateful for the opportunity to debate this issue and for the petition, which has given us the time to do so. This Government may not be interested in the damage that they are causing to so many, but the public clearly are. Unsurprisingly, that includes Oxford West and Abingdon, and it is no great surprise that we were in the top 10 for numbers of signatures—I can fully understand why.

Whichever way we cut it, this Government’s botched deal with Europe has been an unmitigated disaster for this country. It has made the cost of living worse for every household in Britain. It is the reason why we are in the relegation zone in the global growth league tables for developed economies, behind Russia. It has made all of us poorer. We see it on our supermarket shelves, which have been empty at points. When I asked the Prime Minister about that he blamed the weather and the war, but he could not answer why they have not had the same problems in the European Union. There is an obvious answer for that. The fisherman and farmers who are tangled in red tape used to only have to complete one step in order to export their produce to the EU. Now, some face 21 stages. We see the effects in the NHS and social care, with doctors, nurses, care workers, and dentists. In Oxfordshire, 10% of our workforce came from the European Union and countless numbers of them have left. That has been repeated around the country.

Above all, it is small businesses that have been affected. I am also a member of the UK Trade and Business Commission—a poor member, as I do not go as often as I would like. Every time I go, or when I read the reports, it is small businesses that are hit the most. It is obvious to see why. The British Chambers of Commerce membership survey shows that more than half of respondents were facing difficulties in adapting to the new rules, because they are complex and changing and businesses do not have the resources to do it.

As important as the economy is—and it is desperately important now—the impacts are not just economic. Brexit has also stopped collaboration. That was what the European Union was always about; it was about pooling our resources, collaborating with others and sharing ideas. Nowhere was that more important than in science—I say that as a former science teacher.

It was never just about the money. Brexit has stopped crucial collaboration with European partners to do the research to beat cancer, for example. That is because the Government did not seek associate membership of the Horizon scheme at the point of the deal. Students are also missing out in that formative exchange year, with the Government’s bargain basement replacement being underfunded by more than £20 million when compared with the final year that we were in Erasmus. To the punters who were looking forward to watching German punk band Trigger Cut, I can only apologise. That band was turned away at Calais, thanks to the Government’s red tape and not having the right paperwork.

The Government’s fingers are in their ears. Despite all the extraordinary damage, this issue has become the elephant in the room of British politics. They do not want to talk about it. That is why a public inquiry is important. No one here is trying to prosecute the arguments of the past. We are where we are—regrettably. If we do not cool-headedly look at what has happened, then how on earth are we going to repair it?

Rather than trying to repair it, this Government seem intent on making it worse. We thought that the Windsor framework was a moment of pragmatism from the Government, which until that point had used Brexit as a stick to revive their dwindling poll ratings, trying to sow division when they should be looking for pragmatic solutions. It gave me some hope that we were moving on and that the Government were leading from the front—well, that seems not to have happened.

Since then, the road to Horizon Europe has been open, but Ministers are now stalling. I sincerely hope that the Minister present addresses the point: why are our Government stalling, when there is no reason at all why we cannot rejoin Horizon Europe? Time is of the essence. I have spoken to researchers who are looking at where we are now and making decisions about the next academic year—it is happening now, and we need answers immediately.

There is also the Retained EU Law (Revocation and Reform) Bill, which is frankly a monstrous piece of legislation, not only one that threatens comprehensively trash this country’s standards on everything from sewage to workers’ rights, but one that trashes our reputation on the world stage. I was heartened when the Government delayed the Bill in the Lords, but reportedly it is now back on the agenda. I give notice that the Liberal Democrat peers stand ready and willing to undo as much as possible of the damage that it will cause.

However, why are we still in damage mitigation? It feels like groundhog day. The tragedy is, at a time when we desperately need the economy to grow, Ministers refuse to play our trump card, which is fixing our broken relationship with Europe. That starts with getting real about the downsides.

The Liberal Democrats have a plan. Yes, we do want to seek being at the heart of Europe again. That will surprise no one, but we recognise—as many in the Chamber do—that we are nowhere near that. We have so much work that we need to do before we get to that point. Our plan has four steps. The first is the low-hanging fruit, the immediate action that we need to take. Earlier, we heard from my hon. Friend the Member for Twickenham (Munira Wilson), who made the point about schoolchildren, which has been echoed across the Chamber: why on earth can we not have a bespoke deal for schoolchildren on buses? How many of them will be an issue for either economy? They are just not an issue. Let us get on with the obvious, common-sense things that we need to do, which will start to rebuild our relationship.

Secondly, we need to go further, seeking co-operation agreements and, for example, a full return to Erasmus-plus or an agreement on asylum, which would make a huge difference to one of the Prime Minister’s priorities: small boats. Thirdly, we need to negotiate greater access to the single market for our world-leading food and animal products—also known as a veterinary agreement. We need to secure deals on sector-specific work visas, which would benefit the NHS in particular, and we need to re-establish mutual recognition of professional qualifications. Finally, as mentioned earlier by the right hon. Member for Leeds Central (Hilary Benn), yes, we should be seeking membership of the single market. It might be the single market with its customs union—things will have changed slightly by then, and we would have our own deal—but we need full, unfettered access. That is the only thing that will help our small businesses and our economy in the future.

That is the future that I want to see in this country: working together, slashing red tape, boosting the economy, easing the cost of living crisis, pooling research to beat cancer, tackling international crime and trafficking, and giving young people the opportunity to study where they want. All that is on offer, so I urge the Minister and the Government to take it.

--- Later in debate ---

[Leo Docherty]

The Retained EU Law (Revocation and Reform) Bill will be yet another expression of our renewed democratic sovereignty. The hon. Lady’s constituents should be reassured by that, because colleagues in this House will decide which laws stand, which are absorbed and which are repealed. The hon. Lady should be reassured by this more direct expression of our democratic sovereignty.

A range of major reforms are therefore already under way, including to data protection, artificial intelligence and life sciences regimes. We are capitalising on our new-found freedoms outside the EU to attract investment, drive innovation and boost growth and recently announced the Edinburgh reforms to drive growth and competitiveness in the financial services sector. However, laws will not be abolished for the sake of it. We will not jeopardise our strong record on workers’ rights, for example, which is among the best in the world, nor will we roll back maternity rights or threaten the high environmental standards we maintain.

Turning to trade, it is worth remembering that the trade and co-operation agreement agreed in 2020 is the world’s largest zero-tariff, zero-quota deal. It is the first time the EU has ever agreed access like this in a free trade agreement. The TCA also guards the rights of both the EU and the UK to determine their own policies while not regressing in ways that affect trade between the two sides. The UK remains committed to being a global leader in those areas.

As the Office for National Statistics has previously noted, there are a number of factors beyond Brexit that have influenced global trading patterns, including the war in Ukraine, most recently, global economic forces and continued strain on supply chains. Despite this, we must remember that the UK remains an attractive place to invest and grow a business as a low-tax, high-skilled economy.

[Layla Moran]

The Minister has referred yet again to the pandemic and the war, but can he explain why we are languishing at the bottom of the league table of growing economies for developed countries, behind Russia? All those countries are facing the same things, yet we are at the bottom. Why could that be?

[Leo Docherty]

The hon. Lady should take encouragement from looking to foreign direct investment. FDI stock in the UK increased from $2.2 trillion in 2020 to $2.6 trillion in 2021. That is the highest foreign direct investment stock in Europe and the second highest in the world, behind only the United States, up from our ranking in 2020. That is just one measure of the expression of confidence in the future. Of course, there have been headwinds, but taken in the round the economic future of the UK is one of terrific dynamism and confidence. The hon. Lady should share that confidence, and be confident in the future prospects of the British economy.

Outside the EU, we are creating the best regulatory environment to drive economic growth and develop a competitive advantage in new and future technologies, where terrific growth lies. From artificial intelligence and gene editing to the future of transport and data protection, we are building a pro-growth, high-standards framework that gives business the capacity and the confidence to innovate, invest and create jobs.