Brexit: Economic Effect

Lord Cunningham of Felling Excerpts

Thursday 18th October 2018 Lords Chamber

[Lord Bates]

My noble friend raises an interesting point. When we look at the actual economic data rather than the forecast, we see: unemployment falling to record low levels; inflation and the deficit on the way down; employment on the way up; wage increases at their highest level for a decade; and exports increasing. All this points to the fact that, as with all forecasts, these are not targets to be met but something to be beaten.

[Lord Cunningham of Felling (Lab)]

My Lords, is it not the case, and does not the record show, that the north-east of England was one of the largest beneficiaries of Japanese inward investment exactly because the Japanese wanted to be in the UK because the UK was a member of the European Union? We know from statements by the Japanese ambassador and Japanese industrialists that decisions about investment in the UK have now been put on hold. Does the Minister anticipate that, whatever the decision and outcome of the negotiations, Japanese inward investment in the UK will continue as before as though nothing had changed?

[Lord Bates]

Certainly the evidence, though not specifically on Japanese inward investment, is that inward investment has been rising since 2015. I know how crucially important inward investment and exports are to the north-east of England. Those of us from that region were immensely proud to be one of the only net-exporting regions of the country. It is a very important element, but exports are continuing to rise and foreign direct investment is continuing to be made into the United Kingdom, up some 16% since 2015. We believe it is in both our EU friends’ interests and, of course, our own that there is a proper deal so that this can continue and unemployment in the north-east can continue to fall.