UK-EU Summit

Lindsay Hoyle Excerpts

Tuesday 20th May 2025 Commons Chamber

[The Prime Minister (Keir Starmer)]

With permission, I will update the House on the three recent trade deals that we have struck in the national interest.

First, however, I would like to say something about the horrific situation in Gaza, where the level of suffering, with innocent children being bombed again, is utterly intolerable. Over the weekend we co-ordinated a response with our allies, as set out in my statement with President Macron and Prime Minister Carney last night. I want to put on record today that we are horrified by the escalation from Israel. We repeat our demand for a ceasefire, as the only way to free the hostages; we repeat our opposition to settlements in the west bank; and we repeat our demand to massively scale up humanitarian assistance to Gaza. The recent announcement that Israel will allow a “basic quantity of food” into Gaza is totally and utterly inadequate, so we must co-ordinate our response, because this war has gone on for far too long. We cannot allow the people of Gaza to starve, and the Foreign Secretary will come to the House shortly to set out our response in detail.

Let me turn now to the three deals that this Government have struck. The principles we took into the negotiations are clear and simple. Does it drive down bills? Does it drive up jobs? Does it strengthen our borders? In each case, the answer is a resoundingly yes. These deals release us from the tired arguments of the past and, as an independent sovereign nation, allow us to seize the opportunities of the future—a clear message, sent across the globe, that Britain is back on the world stage.

We have a trade deal with the world’s fastest growing economy, India, cutting tariffs for British industries, which is a huge boost for our whisky and gin distilleries—their only concern now is whether they can produce enough to sell—and for our car manufacturers, with tariffs slashed from over 100% to just 10%, and no concessions on visas. We have a trade deal with the world’s richest economy, the United States, slashing tariffs, saving thousands upon thousands of jobs in car manufacturing in places like Jaguar Land Rover, protecting our steel and aluminium exports, and safeguarding the interests of our hugely important pharmaceutical sector.

But I can already see that, when it comes to this hat-trick of deals, it is our new partnership with the EU that the Opposition most want to talk about—and given their abject failure to strike a deal with India or the US, I cannot say I blame them—so let me spell out the benefits of this deal, which gives our country an unprecedented level of access to the EU market: the best access of any nation outside the EU or European Free Trade Association.

I will start with our security. When Russian tanks rolled into Ukraine over three years ago, a gauntlet was thrown down, and it is our responsibility to step up. That is what this world demands, and it is what this partnership delivers, strengthening our national security through a new security and defence partnership that paves the way for British defence firms to access the EU’s €150 billion defence fund. That will support British jobs, British wages and British livelihoods.

The partnership also increases co-operation on emissions trading, saving UK businesses from having to pay up to £800 million in EU carbon taxes—once again, backing British businesses. The deal will drive down bills with increased co-operation on energy, because the agreement negotiated by the Conservative party left us with a more expensive way of working with our neighbours—a needless rupture, despite our grids being connected by undersea cables. This partnership brings those systems together again, benefiting British bill payers and boosting clean British power in the North sea.

This partnership also strengthens our borders, because again, the previous deal left a huge gap and weakened our ability to work together to tackle illegal migration—the ultimate cross-border challenge. It closes that gap, including joint work on returns, preventing channel crossings and working upstream in key source and transit countries, co-operating along the whole migration route to strengthen our hand in the fight against the vile smuggling gangs. It boosts our co-operation on law enforcement, combating terrorism and serious organised crime with closer operational work with agencies like Europol and better sharing of intelligence and data, including, for the first time, facial imaging.

This partnership helps British holidaymakers, who will be able to use e-gates when they travel to Europe, ending those huge queues at passport control. It delivers for our young people, because we are now on a path towards a controlled youth experience scheme, with firm caps on numbers and visa controls—a relationship we have with so many countries around the world, some of which were even set up by the Conservative party. We should be proud to give our young people that opportunity. And, not for the first time, this Government have delivered for Britain’s steel industry, protecting our steel exports from new EU tariffs and backing our steel sector to the hilt.

Last but certainly not least, we have a new sanitary and phytosanitary deal, as promised in our manifesto, which will cut the price of a weekly shop, meaning that there will be more money in the pockets of working people, less red tape for our exporters, no more lorry drivers sitting for 16 hours at the border with rotting food in the back, and no more needless checks—the inevitable consequence of the Conservatives’ policies, which made it so much harder to trade even within our own market, between Great Britain and Northern Ireland.

The deal means that British goods that have long been off the menu in Europe can regain their true place, including shellfish, which are hugely important for Cornwall, Devon and Scotland. Not only does our deal on fish provide stability, with no increase in the amount that EU vessels can catch in British waters, but the new SPS agreement slashes costs and red tape for our exports to the European market. We sell 70% of our seafood to that market, so there is a huge opportunity that Britain’s fisheries, in which we have made a £360 million investment, will now look to exploit.

The reaction to this deal from business has been absolutely clear. Mr Speaker, I know you are a stickler for keeping to time, so I do not have time to run through the list of supportive quotes from businesses. [Hon. Members: “Go on!”]

[Mr Speaker]

Order. The Prime Minister is correct.

[The Prime Minister]

This is not the full list, but the new partnership has been backed by the Federation of Small Businesses, the CBI, the British Retail Consortium, Asda, Morrisons, Salmon Scotland, the Food & Drink Federation, the British Chamber of Commerce, Ryanair, Vodafone and producers of meat, milk and poultry—the list goes on and on. I wonder whether that long list of businesses coming out in support of the deal will temper the reaction of the Leader of the Opposition—but then again, for weeks now, she has been dismissive of the benefits of any trade deal, in defiance, frankly, of her party’s history. It is not just the Conservatives that I am talking about; the hon. Member for Clacton (Nigel Farage), who is not here, and the right hon. Member for Kingston and Surbiton (Ed Davey) have both shown, in their own way, that their parties simply do not get it; if your whole approach to our allies is about striking a pose, you do not get to strike a deal. What that means in a world like ours, where deals are ever more the currency of security and justice, is that you do not get to make a difference, and you do not get to deliver for Britain. That is what this partnership means.

For years, we were told that this could not be done. What the Conservatives meant was that they could not do it. We were told that a deal with the US or India was impossible; what they meant was that it was impossible for them. We were told that a choice must be made between the US and EU; what they meant was that they could not do a deal with both. This Government can and will, because we stay in the room, we fight for the national interest, and we put the British people first. These deals represent a signal that we are back on the world stage—a global champion of free trade, playing our historic role on European security—but above all, they are deals that put money in the pockets of working people, because that is what independent, sovereign nations do. I commend this statement to the House.

[Mr Speaker]

I call the Leader of the Opposition.

--- Later in debate ---

[The Prime Minister]

Oh dear. That was just such an unserious response. The right hon. Lady says that details matter in government; they matter in opposition as well. The SPS agreement cuts red tape and bureaucracy for all food and agricultural products going to the EU. It is a massive boost for our supermarkets, our farmers and others. Why is it that all the supermarkets have come out behind this deal? Because they know how important the SPS agreement is. It is completely in our favour. There is a huge amount of detail there. It is the best agreement.

On defence and security, we have greater operational co-ordination, and the right hon. Lady is against it at a time like this. It opens the gate to the EU defence procurement fund of €150 billion; that was a condition of the deal. She complains about emissions. [Hon. Members: “How much?”] I will tell you how much. Businesses were going to pay £800 million a year in tariffs that they will not now pay. That is why they are coming out in support of the deal. That is how much. The detail matters.

On energy, we are already connected, but we are not using that energy connection. We have electrical access to the market. On steel, we are getting rid of the tariffs. That will support British steel, but the right hon. Lady is against that, yet again. She says that e-gates access is already in existence; this deal clears the way for e-gates access. That is the huge difference it makes. [Interruption.] If any Conservative Members doubt that, they should travel across a border today and see the long queues.

On law enforcement, we have better operational working with Europol, and the right hon. Lady is against it. We have information sharing on facial mapping and dealing with criminal records, and she is against it. She is absolutely unserious. She is also against the India deal, which of course does huge things for trade in sectors such as whisky, where their only concern is whether they can produce enough. They have been absolutely clear about supporting the India deal—a deal that the Conservatives tried to do—and she now says that she is against it.

We have the US deal, which saved thousands upon thousands of jobs in car manufacturing and at Jaguar Land Rover. I do not know whether the right hon. Lady had the chance to make that trip to JLR, but she really ought to before she responds like that again. The US deal reduces tariffs on steel, so that our steel can be sold to America, and supports our whisky and gin, and she is against it. She is against every single deal. She is the only ex-Trade Secretary who is against every single deal. These deals have been welcomed broadly because they are good deals. You do not get a great long list of endorsements from all the business associations and companies for no—[Interruption.] The Conservatives are so unserious; they are lost in a descent into the abyss. They used to be a proud party of trading agreements, and they have slid off into the abyss. That is where they are.

On fishing, none of the rights negotiated by the Conservatives have been removed. There is no change in access for coastal communities, which is the same as before. There is no reduction in the British quota or increase in the EU quota; they are the same as before. We have reciprocal arrangements, which are the same as before. What is new is having the SPS agreement for the first time, and it is permanent. They were unable to do that. It reopens the EU market for shellfish and makes it much easier to sell British fish to our largest trading partner. That is hugely significant, because 72% of British fish is traded into EU markets, and it is now easier to do that. We are backing that with £360 million through our fishing and coastal grants. The Leader of the Opposition talks about the youth experience scheme. That scheme is capped, it is time-limited, and it is balanced.

In relation to standards, the truth is this: we are currently aligned in our standards, but we do not get the benefit of that. We want to continue to have high standards; that is what the British public want, and it is what this deal delivers. We will have a role in shaping any future rules, and application of them is specifically subject to our constitutional arrangements. We will have a process in this Parliament to apply the rules, but to be clear, we are already applying those rules at the moment—we are just not getting the advantage. This deal strips that away. It is good for our country and good for our economy, and it is a shame that the Leader of the Opposition cannot stand up and support it.

[Mr Speaker]

I call the Chair of the Business and Trade Committee.

[Liam Byrne (Birmingham Hodge Hill and Solihull North) (Lab)]

This deal is good for business and good for Britain. I congratulate the Prime Minister on embracing a good half of the Select Committee’s recommendations, which—if I might say so—were agreed on a cross-party basis. While some in this House are proposing trade barriers, the Prime Minister is building trade bridges, and that is in the national interest.

We have a deal, but we do not have a date. The Office for Budget Responsibility cannot score the gains, businesses cannot plan for the benefits, and we cannot suspend customs checks in Northern Ireland until we know when the new SPS checks will come into force. What timetable has the Prime Minister given his negotiators for when that SPS deal will come into effect? Business needs certainty, and for that, we need clarity.

[The Prime Minister]

First, let me pick up on my right hon. Friend’s point about the cross-party support of the Select Committee. There are Conservative Members who I think are ashamed by the response of the Leader of the Opposition, and know very well that these are good deals that should be supported. A number of her Back-Bench MPs are already coming out and saying that these deals are good and in the national interest. [Hon. Members: “Who?”] You know who they are.

I assure my right hon. Friend that we have moved at pace to get the deals, and our instruction to our teams now is to move at pace to implement them. That is what we will do. We negotiated these deals in a short number of months, and we will keep moving at the same pace.

[Mr Speaker]

I call the leader of the Liberal Democrats.

[Ed Davey (Kingston and Surbiton) (LD)]

I associate myself with the Prime Minister’s remarks about the appalling situation in Gaza. When he is working with our French and Canadian colleagues to put pressure on Netanyahu, will he consider, with the French, formally recognising the state of Palestine?

Turning to the EU reset deal, the Prime Minister knows that we do not think this deal goes far enough to fix our broken relationship with Europe, but there are many parts of it that we welcome. We have long been arguing for an agrifood deal to help British farmers export to Europe; for a youth mobility scheme to give our young people incredible new opportunities and British businesses, especially in hospitality, a boost; and for closer alliances on defence in the face of Putin’s imperialism and Trump’s unpredictability. I welcome the progress on those issues, even if there is only very limited progress on things such as youth mobility.

We have all seen the terrible damage caused by the Conservatives’ Brexit deal, and hearing the Conservative leader complain today is like listening to a backseat driver who previously crashed the car. Our country has moved on from the divisive Brexit wars of a decade ago, and some Members of this House need to do the same. However, does the Prime Minister accept that this deal must be only the first step, and that we must be far more ambitious in strengthening our economic and security ties with our nearest neighbours? We believe that a bespoke customs union is a key part of that—not turning back to the past, but forming a new partnership that serves our national interest. I know that the Prime Minister once made that a red line, but he will accept that the world has changed since then, so will he open negotiations on a customs union to get a better deal for Britain—a trade deal to dwarf all other trade deals?

--- Later in debate ---

[Mr Speaker]

I call the Chair of the Foreign Affairs Select Committee.

[Emily Thornberry (Islington South and Finsbury) (Lab)]

I begin by thanking the Prime Minister for what he has said about Gaza. The message he is sending to Netanyahu’s far-right Government could not be clearer, and it should have the unanimous support of this House. It is essentially, “This must stop.”

Turning to the grown-up EU deal, which comes hard on the heels of the two other recent trade agreements, the Government are rightly confident that those deals will be popular and will provide great benefits to our country. As such, I ask the Prime Minister this: why not take this opportunity to fix a glaring hole in our democracy and simply put those agreements to a vote, allowing them to be scrutinised by this place? I can assure him that they will be passed.

--- Later in debate ---

[The Prime Minister]

The hon. Gentleman knows full well that we had red lines about not rejoining the EU—no single market, no customs union and no freedom of movement. We were told that it was impossible to negotiate a better deal with the EU with those red lines, but we have just done it. We have also shown that we are outside the EU, because as the hon. Gentleman will appreciate, having deals with India and the US is inconsistent with membership of the EU. There could be no better evidence that we are not going back into the EU; nor are these negotiations on that basis. I know that the hon. Gentleman understands that well, so I am surprised at the way in which he has put his question.

As for control of borders, net migration quadrupled after Brexit to nearly a million. That was not controlling our borders; it was a complete lack of control by the Conservative party. On the question of payments, it is important to appreciate that we have achieved unprecedented access to EU markets without the budgetary payments of member states. That is an incredible achievement. The only payment under the SPS agreement is administrative—to support the relevant costs of implementing and administering the scheme. For schemes and payments where it is in our national interest, we will negotiate proportionate contributions, as already happens under the deal negotiated by the Conservatives—for example, in relation to research and development and Horizon. The hon. Gentleman knows all that very well.

[Mr Speaker]

I call the Chair of the Treasury Committee.