UK’s Exit from the European Union

Martyn Day Excerpts

Monday 24th April 2023 Westminster Hall

[Steve McCabe (in the Chair)]

Before we start, Mr Speaker has asked me to say that Members who are able to bob to indicate that they wish to speak during the debate should do so. Obviously, if you cannot, we will take that into account. I should also say that about 13 Back Benchers are down on the list to speak in the debate. I know we have about three hours, but that probably means we will have to impose a time limit. At the moment, as guidance, Members might want to look to take about seven minutes, or something like that, given there are likely to be some interventions.

[Martyn Day (Linlithgow and East Falkirk) (SNP)]

I beg to move,

That this House has considered e-petition 628226, relating to the impact of the UK’s exit from the European Union.

It is, as always, a pleasure to serve under your chairmanship, Mr McCabe.

The petition, as at 11 am today, had attracted more than 178,000 signatories. The number was changing by the minute, so it will be even higher now. I highlight that it remains open until 18 May and I urge anyone who agrees with its premise to add to the significant support it has already received.

I am delighted to be leading the debate, not least because I wholeheartedly agree with the grounds of the petition and its request:

“The benefits that were promised if the UK exited the European Union have not been delivered, so we call upon the Government to hold a Public Inquiry to assess the impact that Brexit has had on this country and its citizens.

It is time that the people of this country were told the truth about Brexit, good or bad. We deserve to know how Brexit is impacting on trade, the economy, opportunities for young people and how it has affected the rights of individuals. This can only be done by an independent Public Inquiry, free from ideology and the opinions of vested interests.”

Last week, I had the pleasure of meeting Peter Packham, the man who started the petition. An elected member of the European Movement’s national council and a manager of one of its local branches, Leeds for Europe, Peter is a passionate pro-European campaigner, and I am delighted that he is able to join us in the Public Gallery today. I thank Peter and Leeds for Europe for their petition urging the UK Government to hold a public inquiry into the impact of Brexit, as well as everyone who signed it, because those actions brought us here for what I am sure will be an informative debate.

Concerns have been expressed that no impact assessment has been carried out to assess the damage that Brexit has created, despite the chairman of the Office for Budget Responsibility saying:

“In the long term, it is the case that Brexit has a bigger impact than the pandemic.”

[Catherine West (Hornsey and Wood Green) (Lab)]

The hon. Member is making a very good start to this important debate. Does he agree that one of the worst-affected sectors is the creative sector? Many musicians across the UK have been in touch with us as their representatives to say how they have been negatively affected by the lack of agreement between countries. I hope that he and others will refer to that in their speeches.

[Martyn Day]

That is a good point well made. The problem we have with the debate is that so many areas have been adversely affected that even with the best part of 20 minutes, I will struggle to touch on them all. I look forward to other Members extrapolating from the points we start with.

A public inquiry has been set up to look into the UK’s pandemic response, so it is reasonable—I would suggest sensible—to also hold one on the impact of Brexit. The public have a right to know. Putting aside the fact that support for Brexit is at its lowest since the referendum, the impact of leaving the EU on the UK needs to become common knowledge. We need to know where we are before we can plot our way forward to where we want to be.

[Munira Wilson (Twickenham) (LD)]

Some of those who felt the impact of Brexit most keenly were not old enough to vote. Children and young people have lost access to schemes such as Erasmus. Schoolchildren were stuck for many hours on coaches at Dover over the Easter holidays, and we had Conservative Ministers telling us that that had absolutely nothing to do with Brexit. Furthermore, the Tourism Alliance tells us that the number of schoolchildren coming from the European Union on school trips has halved because of bureaucracy around group visas and the inability to travel without a passport, whereas it used to be possible to travel on an ID card. Does the hon. Member agree that children and young people have fared the worst and that many people were not aware of that when the decision went through?

[Martyn Day]

I thank the hon. Member for that point. I agree that young people have lost the most, but I hope that we can regain some of that for them in the future.

To put it simply, can we make Brexit work? I very much doubt it, but can we move on without knowing what the foundation is? The UK Government opened its response to petitioners by saying:

“The UK’s departure from the EU is the result of a democratic choice”.

For that reason, at the outset of the debate, it would be remiss of me not to point out that 62% of those who voted in Scotland did not want to leave the EU, with every Scottish council returning a remain majority. Just under 56% of those who voted in Northern Ireland did not want to leave the EU either.

[Tonia Antoniazzi (Gower) (Lab)]

Does the hon. Gentleman agree that transparency is the key to all good governance and that, without knowing the impact of leaving the European Union, we will never be able to resolve the issues we have at present?

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[Martyn Day]

That is a very good point and one that I will also make.

It will come as no surprise to anyone that, as a citizen of one of those nations, those figures do not seem very democratic to me. It is not my place to comment on the Northern Ireland situation—

[Jim Shannon (Strangford) (DUP)]

I’ll do that. Don’t worry.

[Martyn Day]

I am sure the hon. Gentleman will.

It is not my place to comment on the Northern Ireland situation, particularly pertaining to the added complexities of what was the Northern Ireland protocol. However, I can say that the whole Brexit saga lays bare why Westminster is unfit to govern in Scotland’s interests. Indeed, not only has the Brexit debacle blown apart the case for Westminster control, but the ensuing debate has shown beyond doubt that the two major Westminster parties are committed to the damage that leaving the EU is having on trade and the economy across the UK, as well as on opportunities for our young people and the rights of individuals.

[Caroline Lucas (Brighton, Pavilion) (Green)]

I apologise for jumping in on the hon. Gentleman quite so quickly, but he is making lots of really important points. Does he agree that one of the most valuable features of a democracy is that it has the potential for error correction? In other words, does he agree that, if people change their minds—as is increasingly the case with Brexit—the only logical thing to do is to change the decision that caused people to change their minds?

[Martyn Day]

The hon. Lady makes a very good point. In a democracy, people always have the right to change their minds and we should bear that in mind at all times.

Before moving on to some of the evidence of the negative impact of Brexit, I want to mention that the UK Government’s response also said that

“the UK-EU institutions are functioning as intended.”

If that is the case, considering that the democratic will of the people of Northern Ireland was not met, it prompts the question of why it took so long for the UK-EU institutions to reach agreement on the Windsor framework. That breakthrough was surely not “intended” to take nearly seven years.

It is disappointing that a similar deal to Northern Ireland’s has not been afforded to Scotland, but that is not for this debate. I am sure that we can have fun with that issue in months to come. However, given the length of time it took to negotiate such a critical agreement, can the Minister tell us what progress has been made on negotiating re-entry to European projects that all four nations were removed from, such as Horizon Europe, Copernicus, Euratom, the European arrest warrant, Europol and the Schengen information system? It would be helpful if the Minister could also take the opportunity to explain why both the European Scrutiny Committee and the Lords European Affairs Committee are currently holding inquiries on the new UK-EU relationship. Perhaps he could suggest when those findings will be published to evidence the UK Government’s claim that UK-EU institutions are indeed functioning as intended.

Moving on to how Brexit is affecting trade and the economy, the Trade Secretary recently announced that the UK had reached agreement to join the comprehensive and progressive agreement for trans-Pacific partnership—sometimes referred to under the acronym CPTPP or otherwise known as the Pacific rim trade deal—which will allow zero tariffs for 99% of goods exported to the bloc. Although the agreement has not yet been signed, the Trade Secretary claimed, in her excitement, that it would “open up our economy”. Good news, we might think—but, in the course of the announcement, she also said that we should “not keep talking” about Brexit. Well, this debate might disappoint her, as it shows that Brexit remains a live political issue. I align with the opinion of the petitioners that it will continue to be so at least until the facts are known, and probably for some time to come afterwards.

[Marsha De Cordova (Battersea) (Lab)]

On the subject of Brexit being on everyone’s minds, for my constituents in Battersea it remains an issue and, for them, it has been an unmitigated disaster. Our economy is not growing, our rights and protections are being infringed and, more importantly, Britain’s standing in the world is also challenged. I have called on the Government to produce a cumulative impact assessment on the impact of Brexit. Does the hon. Member agree that any public inquiry must look at the cumulative impact of Brexit on our constituents?

[Martyn Day]

I am happy to agree with that. The more I learn, the more I realise that there is no such thing as a good Brexit. I think we are all seeing that clearly.

The Trade Secretary’s reason for saying what she did could be that, according to the UK Government’s own scoping assessment, the shiny new CPTPP trade bloc deal will bring an increase of only 0.08% in GDP over a lengthy 15 years. The House of Commons Library reports that the economic benefits of CPTPP membership “appear to be small.”

[Liz Saville Roberts (Dwyfor Meirionnydd) (PC)]

The hon. Gentleman mentions the 0.08% boost to GDP promised by access to the CPTPP. Surely, in all honesty, for the sake of our economy the time has come to stop burying our heads in the sand. We cannot just multiply excuses; we have got to face the reality that Brexit is part of the problem. With that, from Plaid Cymru’s point of view, we should be looking to move towards rejoining the single market, but the first part is to recognise that there are multiple causes and that Brexit is a critical one of them.

[Martyn Day]

I thank the right hon. Member for that intervention. It is fair to say that the economic impact of Brexit falls well short of the benefits that the UK enjoyed with EU membership; the OBR expects our withdrawal from that to reduce the overall trade intensity of the UK economy by 15% in the long term. The OBR’s latest Brexit analysis assumes that the trade and co-operation agreement, which sets the terms of the post-Brexit trading relationship between the UK and the EU, will reduce the potential productivity of the UK economy by 4%, largely due to the increase in non-tariff barriers.

In rebutting those figures during the CPTPP announcement, the Trade Secretary pointed out that the OBR’s forecasting was speculative. However, the OBR’s economic and fiscal outlook last month highlighted that it had been reviewing and refining its assumptions about the economic impact of Brexit as new evidence arrived and that, two years into the trade and co-operation agreement, the trends on UK trade volumes remained consistent with its assumptions. Additionally, the OBR forecasts stem from out-turn data published by the Office for National Statistics. The latest data from the third quarter of 2022 suggested that UK trade volumes remain 3% below their 2019 level, while there has been an average increase of 5.5% across other G7 countries. Similarly, trade intensity is 2.6% lower than its pre-pandemic level in the UK, yet it is 3.6% higher in the rest of the G7.

A recent study estimates that UK goods trade was 7% lower in June 2022 than it would have been were we still in the EU. All in all, in terms of trading, the Pacific rim trade deal, along with the already-signed agreements with Australia and New Zealand, which have yet to come into force, has limited positive economic impact to compensate for what we have lost due to the UK Government pushing through a hard Brexit deal outside the EU single market and customs union.

In December 2021, the National Audit Office predicted that the macroeconomic benefits of free trade agreement negotiations being carried out by the UK Government at the time would only increase the UK’s GDP by between 0.33%, at best, and 0.17%, at worst, after 50 years. From those projections, the USA was the biggest potential FTA partner. However, although negotiations started nearly three years ago, there is no trade agreement with the USA, and neither is one expected any time soon. The relatively modest economic benefits projected from the secured and proposed agreements by the Department for International Trade have therefore further decreased.

Compare that with where we were: part of the second largest and most-integrated world trading blocs, which also happens to lead the way in global standards and regulations. Maybe the Prime Minister’s idea about mandatory maths for everyone up to the age of 18 holds some credence after all, as the sums certainly do not add up. The Pacific rim trade deal also has wider negative impacts, such as its inclusion of investor-state dispute settlement clauses, which I am totally against, and environmental costs. For example, the UK Government’s own analysis stated that joining CPTPP is estimated to increase the UK’s domestic greenhouse gas emissions. How that complies with the UK Government’s net zero ambitions escapes me; perhaps the Minister can enlighten us on that point, too.

Like the Pacific rim trade deal, Brexit is causing damage on multiple levels, but I will try to confine my remarks to the specific issues that the petition mentions, and move on to how Brexit is impacting on opportunities for young people and on the rights of individuals. Before doing so, let me point out the obvious: the damaging impact of Brexit on trade and the economy undoubtedly has ripple effects on opportunities and rights. That said, I will start with the removal of the right to free movement—not just for work purposes—which puts barriers in place for both UK and EU citizens and causes workforce shortages in key sectors, including the crucial health and care sector, due to the simple matter of travel, which is now much less straightforward and flexible.

We have only to look back a couple of weeks to see the delays at Dover over the Easter break, which were caused by new passport stamping requirements, and we can look forward to worse delays to come when the EU’s post-Brexit entry-exit system, or EES, comes into effect next year. This new border control for non-EU travellers, which Brexit has made us, has been described as “anticipated chaos”—another Brexit benefit for us all to look forward to. Delays at customs are also a major headache for manufacturers, with 31% predicting that owing to new trading rules, customs delays will be the biggest risk to their company’s competitiveness in 2023, and 36% of small and medium-sized businesses are still struggling with the new customs procedures and paperwork.

There are also privacy rights, with the EU’s general data protections regulations thus far serving us well in protecting our personal data. To replace them, the Science Secretary has recently put forward the new Data Protection and Digital Information (No. 2) Bill to supersede its predecessor, which was repeatedly delayed. However, I have serious concerns that the Bill will, first, erode the high standards of data protection rights that UK citizens held as part of the EU GDPR and, secondly, further negatively impact on any review of the UK-EU trade deal if it fails to protect EU citizens. I want to see a commitment to robust data privacy protections and world-beating data protection regulations being maintained. However, on the Bill’s Second Reading last week, my hon. Friend the Member for Glasgow North West (Carol Monaghan) put on the record that, with regards to how this piece of post-Brexit legislation will affect individuals’ rights, the Open Rights Group has said:

“The government has an opportunity to strengthen the UK’s data protection regime post Brexit. However, it is instead setting the country on a dangerous path that undermines trust, furthers economic instability, and erodes fundamental rights.”

Back in 2016, the Vote Leave campaign described EU regulations as excessive red tape. Like it or not, regulation is essential not just for the EU single market to function, but to protect workers. The UK Government’s Retained EU Law (Revocation and Reform) Bill, which was brought forward despite it not being known exactly how many regulations it would affect, will enable the UK Government to abandon vital legislation that has protected people’s rights for almost 50 years. In Committee in the House of Commons, my hon. Friend the Member for Argyll and Bute (Brendan O’Hara) tabled many amendments that targeted multiple issues in that Bill, including about workers’ rights, food standards, consumer safety and the uncertainty facing businesses. It is a disgrace that those concerns were ignored by the UK Government and that all SNP amendments were voted down by Conservative MPs.

On the impact of Brexit on opportunities for young people, it is no exaggeration to say that it has removed their access to a European, if not global, labour market. Instead of prioritising young people, enhancing their opportunities and widening access to positive destinations to ensure that they get the best possible start in life, Brexit has stolen those prospects for success.

[Catherine West]

Does the hon. Gentleman agree that the particular impact on school trips has been enormous and that that does not just have a knock-on effect on our local economy here in London and across the UK, but tends to narrow the horizons in terms of friendship forming and all those other important and intangible benefits of doing school trips abroad?

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[Martyn Day]

I agree wholeheartedly with that. As a person who has benefited from town twinning and sister city deals over the course of my life, I can say that it weakens our soft power and our influence in other countries as well.

On top of all that, removing freedom of movement means that our young people can no longer study in EU countries without a visa, never mind gain experience of travelling or working in Europe. Additionally, there has been the UK Government’s decision to leave the Erasmus programme and all its related benefits, which have not been replaced by its UK replacement, the Turing scheme. Likewise, there has been a sharp drop in the number of new EU students enrolling in universities across the UK. Indeed, it was reported in January that the numbers had “more than halved”, with Brexit seen as the “primary deterrent”. Universities UK said that the increase in students from outside the EU had failed to

“offset the exodus of EU students at undergraduate level, weakening financial stability in some third-level education and reducing diversity across some subject areas.”

The head of global mobility policy at Universities UK said that the figures show

“very clearly the impact of the sort of loss of freedom of movement”.

This is impacting on research talent for the UK. My hon. Friend the Member for Midlothian (Owen Thompson) raised concerns just last week in a debate entitled “Research and Development Funding and Horizon Europe”, pointing out that since 2014

“Scottish and UK universities have lost almost £1 billion in structural EU funds for research”.—[Official Report, Westminster Hall, 18 April 2023; Vol. 731, c. 105WH.]

The manufacturers’ organisation, Make UK, has advised that Horizon Europe is a key area of funding for innovation in the UK manufacturing sector and will be important for growth in areas such as advanced manufacturing and digital processes. Yet, due to discussions still ongoing, UK-based researchers have been unable to access Horizon Europe funds.

I will conclude my opening remarks by saying that nearly seven years on from the Brexit referendum, the UK public are still waiting for the elusive “Brexit benefits” that were promised. It seems to me, having raised just some of the areas where leaving the EU has impacted on the UK, that the benefits of Brexit are pure fantasy. The economic fallout from Brexit is stark and it has been made starker by the current cost of living crisis that is being inflicted on households up and down the country. From my perspective, Brexit has been an unmitigated disaster—politically, economically and socially, for Scotland and the rest of the UK. The UK Government, of course, have a means to refute this. When major events occur, public inquiries can be held into matters of public concern to establish facts, to learn lessons so that mistakes are not repeated, to restore public confidence and to determine accountability. I do not think anyone here can deny that Brexit was a major event, and this petition shows that it is still a matter of public concern and that we will not stop talking about it—despite the Trade Secretary’s request. I am sure that I have barely scratched the surface of this matter. I look forward to hearing the other contributions to the debate, particularly the Minister’s response to the points that are made. I am sure we are all interested to hear about how the Government do not believe the UK’s departure from the EU is a subject for a public inquiry, which it clearly is.

[Steve McCabe (in the Chair)]

Given the number of people who want to speak, we will opt for a time limit, starting with eight minutes. I call Adam Holloway.

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[Martyn Day]

On behalf of the Petitions Committee, I extend my gratitude to all Members who gave up their time to take part in today’s lively and informed, albeit rather one-sided, debate, which has emphasised the strength of feeling. An Omnisis poll that was mentioned earlier suggests that 59% of the public agree that there should be an inquiry. Why should there not be an inquiry into what has been the largest constitutional change that the country has seen in my lifetime, with the biggest economic impact? Clearly, it cries out for one.

I said that Brexit has been an unmitigated disaster, and I have heard nothing today to change my mind; however, it is worth pointing out that the petitioners’ call is for a public inquiry, not immediately to rejoin the European Union. Personally, I want to be back in Europe as quickly as possible. I would like to see the UK back in Europe, but I know that Scotland has an alternate route to get there, through independence. I would be happy to grab that route as quickly as possible.

The data that we have heard paints a very bleak picture. There is simply no such thing as a good Brexit. The public increasingly can see that. It makes me wonder whether Ministers are hiding behind the democratic mandate because they know that, and because a public inquiry would highlight the tissue of falsehoods and misinformation that the whole Brexit project was built on. It still requires a public inquiry. Since we have been debating, the number of signatures has risen rapidly. Now more than 184,000 people have signed the petition, and it is still growing.

Question put and agreed to.

Resolved,

That this House has considered e-petition 628226, relating to the impact of the UK’s exit from the European Union.