Brexit: Economic Impact

Lord Bilimoria Excerpts

Wednesday 20th February 2019 Lords Chamber

[Lord Bates]

The solution the noble Lord proposes would necessitate our signing up to a common external tariff barrier, which would mean we could not negotiate our own trade deals; we would not have control of our borders in terms of free movement; and we would still have our laws dictated by the European Court of Justice. That is what was rejected and what we are trying to negotiate an alternative to.

[Lord Bilimoria (CB)]

My Lords, following the question from the noble Lord, Lord Hannay, the Minister said that under the Prime Minister’s deal the economy would be 7% better off than in a no-deal scenario. Does the Minister accept that the Prime Minister’s deal would be much worse than remaining in the European Union? The economy would be far better off. Does he admit that? A Norway-plus, least-worst option would also be much better for the economy than the Prime Minister’s deal.

[Lord Bates]

I do not accept that, because the point is that we do not know what that final deal is. There are also significant factors that need to be put in here, such as new trade deals that could be secured with trading partners. We already had exports at record levels last year. The UK is still regarded—just last month—as the number one location for foreign investment, according to Forbes. Just in January, Deloitte said London was the world’s best city to invest in. The reality is that this country has a huge amount to offer. Once that energy is released and we get beyond Brexit, I believe we will make those figures look pretty sad and depressed.