UK Economy: Post-Referendum Assessment

Liam Fox Excerpts

Monday 23rd May 2016 Commons Chamber

[Mr Gauke]

The hon. Gentleman’s point about uncertainty is right, and there is clearly uncertainty in the economy at the moment as a consequence of the referendum on Brexit. It is absolutely right that we have that referendum, but such uncertainty can resolve itself quickly on 23 June if there is a remain vote. If there is a leave vote, we clearly face at least two years of uncertainty, and quite possibly longer.

On the state of the economy—this is perhaps where the hon. Gentleman and I may differ—we have taken steps to address the long-term challenges faced by the economy, but there is no doubt that the past few years have been difficult for the British economy. We are now one of the fastest-growing major economies in the world, and our progress over the past six years would be put at risk were we to vote to leave the European Union.

[Dr Liam Fox (North Somerset) (Con)]

I am sorry that my hon. Friend has had to come to the House to defend this disreputable, shabby and misleading report. The last Treasury report set out three scenarios, including membership of the European economic area. Why was that left out of this report, and was the permanent secretary in agreement with that major departure from normal procedure?

[Mr Gauke]

As I understand it, the leave campaign have made it clear that they would not want to go down the Norway route and be members of the EEA, because that would require continued contributions to the EU budget, continued compliance with EU regulations, and continuing to be signed up to free movement of labour. Given that the leave campaign is now focused almost exclusively on immigration, it would be strange to suggest that one option to take would be one that has been dismissed by the campaign to leave the European Union.