European Union (Withdrawal) Bill

Lord Hunt of Kings Heath Excerpts

Committee: 2nd sitting (Hansard): House of Lords
Monday 26th February 2018 Lords Chamber

Moved by

[Lord Hunt of Kings Heath]

10: Clause 1, page 1, line 3, at end insert—
“( ) Regulations bringing into force subsection (1) may not be made until the Secretary of State has set out a strategy for seeking to remain a member of, or a strategy seeking to maintain equivalent participatory relations with, Erasmus+ and Horizon 2020 and Horizon 2020’s successor programmes.”

[Lord Hunt of Kings Heath (Lab)]

My Lords, we now come to an amendment which concerns two EU programmes which are clearly at risk as a consequence of the Brexit withdrawal. The first is Horizon 2020, which is a major funder of research, principally in our universities. One cannot talk about this funding programme without making reference to the impact on the UK economy.

I remind the Minister that the Government’s industrial strategy sets a goal for the UK to have the world’s most innovative economy. It states that we are recognised as a global leader in science and research but that neither the Government nor the private sector are investing enough in R&D. As the Government’s paper points out, we spend 1.7% of GDP, compared with 2.8% in the US and 2.9% in Germany. Commendably, the Government have set the goal to raise total research and development investment to 2.4% of GDP by 2027. They state their intention to work with universities and research institutes to increase global investors and R&D activities taking place in the UK. That is highly commendable but also challenging in the context of Brexit.

There are a number of factors in this. First, I hark back to our previous debate on regulation. The Minister says that because 90% of medicines in use in the UK are licensed by the MHRA, we should not worry if there is no deal, and the MHRA becomes a stand-alone regulator. That misses the point that any medicines licensed by the MHRA in this country can then be taken to be licensed throughout the EU. The reason is that we play by the same rules. Unless we reach a mutual recognition agreement with the EU, it is absolutely clear that pharma’s investment in research in the UK will fall dramatically. It is not just regulation, it is funding, it is multicentre research collaboration, it is research policy and it is movement of researchers.

At the moment, many of those research programmes are at risk, none more so than Horizon 2020. This is a programme which funds major research in our universities. Rather like the UK’s general research position, we have a hugely impressive number of universities engaged in high-quality research. We know that despite the relatively low share of global investment in R&D, UK research accounted for 50% of the world’s most highly cited research articles. Part of that success has been in attracting more than £1 billion from overseas every year, with £840 million coming from the EU in 2015-16. Horizon 2020 is the biggest EU research and innovation programme and the UK has done very well out of it. It is the second in order of recipients of that programme within the EU. Around 15% of funds allocated from Horizon 2020 have gone to the UK. Indeed, Cambridge, UCL, Imperial and Oxford universities are the top four recipients to date. Other universities, including Edinburgh, Manchester and Birmingham have also done well.

Clearly, the question is: what will happen with withdrawal from the EU? At the moment, the position is that UK researchers will remain fully eligible for EU funding for at least the next 17 months. The Government have given a guarantee to pay out any funding applied for and awarded before we leave. But, of course, the question is: what happens post 2020? The Government’s position on that is non-committal. We have had positive messages from the Prime Minister in her Lancaster House and Florence speeches, and in the Government’s science and innovation discussion paper, but since then, there has been no clarification at all of the UK’s status in relation to this funding after Brexit.

Of course, the worry is that simply the loss of funding will have a big impact on our research capabilities and also collaboration with European universities. My amendment would ensure that we either remain a member of, or seek to maintain some kind of participatory relations with, Horizon 2020 and its successor programmes. I should say that part of the problem is that if academics do not know, it is very difficult for them to plan research collaborations with European universities going beyond the due date. Any week lost in terms of uncertainty is sure to put some of those programmes at risk.

I propose a similar approach in relation to the Erasmus+ programme. I should have thought that, post Brexit, the need to encourage young people from the UK to maintain and develop links with the rest of Europe is self-evident if we are to avoid drifting apart from the continent. Yet our withdrawal from the Erasmus+ programme could make that more difficult. This EU-funded scheme has enabled 600,000 people from the UK to go abroad to study, train or volunteer over the last 30 years. It is open to education, training, youth and sports organisations across all sectors of lifelong learning, including school education, further education, adult education and the youth sector, as well as higher education, for which I suspect it is most well known. For young people, this has had a hugely positive impact, leading to better job prospects and lower unemployment. The British Council, which oversees it, reports that young people who participate in international opportunities return with increased language and intercultural skills.

The programme is not just about the EU—it has enabled UK universities to develop new or to reinforce existing partnerships with universities in Asia, Latin America and the US. The British Council believes that the UK should seek to remain in a successor Erasmus+ programme, and I very much agree with that. If we do not, the UK will have to set up numerous bilateral relationships which will be time consuming and costly, and frankly, I doubt the capacity of government to be able to do it any time soon. Here we have an entirely positive programme, enabling young people from this country and other countries of the EU to enjoy fulfilment and open their horizons. I should have thought that at least in this programme, it would have been possible to agree our future participation. I hope the Minister will be able to confirm that. I beg to move.

--- Later in debate ---

[Lord Callanan]

As I said, I am fairly certain that we will want to continue to welcome as many students and researchers as want to visit this country in future, but, as I am sure the noble Lord will understand, I cannot speculate on what a future immigration policy might be before it has been announced by the Home Office and published by the Government.

Nevertheless, let me say for the avoidance of doubt that I have heard the message from all parts of the House and I will certainly reflect on these matters before we come back to the issue on Report. I understand that there are very strong feelings from all parts of the House about these issues and we will certainly see what we can do about that.

[Lord Hunt of Kings Heath]

My Lords, first, let me say that I welcome the Minister saying that he will reflect on this debate, because I think it is the first chink of light from him on any of these important debates in Committee. It has been a remarkable debate. We have heard from many noble Lords about the importance of the Erasmus programme. I agree with my noble friend Lord Adonis: the noble Baroness, Lady Brown, speaking from huge experience as a former vice-chancellor of Aston University of the impact that Erasmus has had on the students who go to Aston and the way it has widened their horizons, is for me one of the most important illustrations of why future participation by the UK in Erasmus is so important.

On research, again, my worry is that the Government are hugely complacent about the UK’s position. Consider the consequences of uncertainty over Horizon 2020, which is having an impact on universities at this very moment in terms of collaboration on future research bids. Even where European Union universities will still collaborate with UK universities—and it is by no means certain that they will continue to do so in every case—they are reluctant for UK universities to be in the lead. Added to the uncertainties about the movement of both academics and students, we are entering a hugely uncertain position for a very important sector.

I listened with care to what the Minister said. To be fair, he has said that the Government value both Erasmus and Horizon 2020 and he repeated the Prime Minister’s comments, particularly in relation to Horizon 2020. He then said that while he values these programmes, the EU is working out the next stage of both Erasmus and Horizon 2020, that the UK is part of some discussion about that but they will form part of the negotiations and that there is nothing more he can say.

I think there is something more that the Minister can say. I think it is without question that it is in our national interest that we continue wholeheartedly to take part in those programmes. Thinking about the negotiations and the UK Government’s tactics, this niggardly, churlish approach does not seem to be getting us very far. This Government would attract a hell of a lot of good will if in relation to just these two programmes they said, “Whatever, we are going to stick with it, and we will make good any deficiency in UK university research programmes if the price of sticking with it means that we will get less than we did in the past”.

The whole Committee—almost all Members—really wants these programmes to continue. We will obviously come back at Report. The Minister has kindly said he will reflect on it. I very much hope that he will do so. I beg leave to withdraw the amendment.

Amendment 10 withdrawn.