Brexit: Case for a Second Referendum

Lord Livermore Excerpts

Thursday 7th July 2016 Lords Chamber

[Lord Livermore (Lab)]

My Lords, I believe passionately in Britain’s membership of the European Union and that leaving would have disastrous consequences for our country—for the union with Scotland, our economy, and our place in the world. Great Britain now faces the very real prospect of becoming little England: poorer and inward-looking, divided and diminished.

However, we cannot pretend that a verdict has not been delivered by the British people in the referendum, and Parliament—particularly this House—must acknowledge a mandate, based on the promises of the leave campaign, for an end to free movement of labour and an end to our financial contribution. But neither can we pretend that this mandate is in any way compatible with the economic well-being of the nation, and Parliament would be failing in its democratic duty if we failed to acknowledge that fact.

The uncertainty created simply by the result of the referendum is already feeding through to the real economy. The Economist Intelligence Unit estimates that investment will decline by 8% by 2017, our debt burden will reach 100% of GDP by 2018, and our GDP will be 6% lower by 2020. Both the politics and the economics are clear but irreconcilable, and we are heading for a moment of decision when a choice has to be made between them.

Rather than confront that choice, a delusion has taken hold in both main parties—and, most importantly, among the candidates vying to become Prime Minister—that our economy can be protected within the single market while at the same time ending free movement and budget contributions. The presidents of the European Parliament, the Commission, the Council, as well as the leaders of Germany, France, and all member states, have said unanimously that there can be no access for the UK to the single market on these terms. After all, why would they give the UK a better deal than they themselves enjoy?

Therefore we face a terrible choice, but one for which the British public have in no way been prepared. Do we honour the political mandate and create an economic crisis, or do we honour our duty to protect the economic well-being of our country and create a political crisis? If the promises made on immigration turn out to be undeliverable, the backlash will be catastrophic for our democracy. Yet how can a democratic Government knowingly and deliberately pursue a policy of leaving the single market when it would cause such economic self-harm to our nation?

Ideological zealots on both the extreme left and right in British politics will make the decision more difficult still for anyone who genuinely seeks to wrestle with this choice. However, decisions of this magnitude cannot be taken by Parliament alone. They require greater democratic legitimacy. The British people must be involved in helping to resolve this choice.