Lord Tunnicliffe
Main Page: Lord Tunnicliffe (Labour - Life peer)
Lord Tunnicliffe (Lab)
My Lords, the Prime Minister’s speech in Florence marked an important turning point, not because it brought about a breakthrough—it did not. The EU’s chief negotiator was clear when he described talks as having reached deadlock. It was significant because the Government finally accepted the need for a transitional period, which Labour has consistently argued is essential for British business and jobs. Florence, while offering no guarantees, at least represented a step forward.
Falling off a cliff edge in 2019 is in nobody’s interests. If anyone has any doubt about the importance of transitional arrangements, they need look no further than two reports published this week that warn of the dire economic consequences we face if the Government cannot get their act together. The OECD has said that no deal would wipe £40 billion off the UK’s economy, while the Resolution Foundation revealed that if the UK reverts to most favoured nation tariffs, the cost of living will rise dramatically. How many more warnings do the Government need before they wake up to that fact? TheCityUK warned that,
“a transitional deal is of diminishing value”,
if no agreement is struck by the end of March next year. Banks and other financial services have been clear: without progress, they will have no choice but to move at least some of their operations out of the UK. Can the Minister give this industry the “urgent clarity” it needs?
As the Prime Minister has now recognised, it is nonsensical for businesses, consumers and public bodies to adjust to one set of changes in 2019, only to move to another regime when the new UK-EU relationship comes into force. That is why we on these Benches welcome the Government finally accepting the need for a transitional deal. For the avoidance of doubt, such a deal must not become a means of staying in the EU. Any transition should be as short as possible, but as long as necessary for our economy.
I urge the Government to finally publish their sectoral impact assessment, as Labour called for during the passage of the Article 50 Act. There is cross-party consensus on this. We know these assessments exist. The Secretary of State has been warned of legal action if they are not published. I therefore hope the Minister will assure us that these documents will be forthcoming.