Queen’s Speech

Lord Taverne Excerpts

Wednesday 18th May 2022 Lords Chamber

[Lord Taverne (LD)]

My Lords, I will discuss trade and our relations with the European Union, matters which are integral to our domestic, economic and political health, as well as the wider international picture.

Some Labour voices urge us to stop talking about Brexit. Why on earth would we do that? Brexit is not done; it was a profound mistake, the dire consequences of which are becoming more evident every day. According to the polls, the public now increasingly recognises this. The Office for Budget Responsibility’s assessment is that UK-EU imports and exports have suffered a 15% cut since Brexit—as one would expect after leaving our biggest and most profitable market. Other authoritative forecasts are even more pessimistic. The effect of this will be to further increase inflation—already forecast to rise to a disastrous 10%—weaken the pound, force an increase in interest rates, lower investment and likely worsen our depressingly low productivity. Any valuable opportunities of international co-operation have been, or will be, lost, such as the Erasmus programme. Brexit has not only severely weakened our economy and influence in the world, but, to a lesser extent, that of the EU as a whole. At a time of Russian aggression, the growing influence of China and uncertainties about the future leadership of the United States, a strong EU is needed to play a vital part in supporting freedom and justice in the world.

Macron has made an imaginative proposal to build a stronger Europe based on a political community, and we should show that we share this aim. What, then, should our policy be? Applying to re-join the European Union tomorrow is clearly unrealistic, but we should start to rebuild the closest possible relationships with it. As part of this, I believe that we should propose a bold move: to re-join the European single market. This would have profound and important political implications. The biggest immediate advantage of re-joining the European single market is that it would solve the apparently insoluble problem of the Northern Ireland protocol. It is not surprising that there is such a strong reaction to a border in the Irish Sea in Northern Ireland, as well as among British businesses. Johnson vowed that no British Prime Minister would ever impose a border; then he did so and boasted that the protocol was a great deal. Re-joining the European single market would avoid borders between any part of the UK and the Republic of Ireland because we would all be members of the European single market. Furthermore, it would save the Good Friday agreement.

However, this will need a sea change in government: no more contempt for the rule of law, domestic as well as international, and no more threats to repeal international treaties we have solemnly signed—although it seems that the Government are about to legislate to make such threats a reality, which can only exacerbate our relationship with the EU. By contrast, re-joining the European single market would symbolise a new relationship with the European Union and demonstrate that we are serious about Macron’s aim of a stronger Europe. We desperately need a new Government. As the Observer pointed out on Sunday, the best hope for this, in light of the recent elections, is a Labour Government with strong support from the Liberal Democrats and Greens—and possibly even from dissident Tory remainers. This would not be another coalition but a pro-European alliance. Re-joining the European single market should be a central part of the strategy of this alliance.