UK-EU Common Understanding Negotiations

Nusrat Ghani Excerpts

Wednesday 17th December 2025 Commons Chamber

[The Paymaster General and Minister for the Cabinet Office (Nick Thomas-Symonds)]

With permission, Madam Deputy Speaker, I would like to make a statement on the Government’s strategic partnership with the EU.

The Government were elected with a manifesto commitment to reset relations with our European partners; to tear down unnecessary barriers to trade and cut costs and red tape for British producers and retailers; to increase national security through strong borders and greater co-operation with our closest allies; and to support jobs here in the UK and opportunities abroad.

In May this year, the Government agreed a new strategic partnership with the EU, which the Prime Minister announced at the historic UK-EU summit—the first of its kind. It is a landmark deal that is good for bills, good for our borders and good for jobs. We took that decision, exercising our sovereignty, to strike a deal in the national interest. We had to fix a bad deal passed on to us by the previous Government—the first trade deal in history that made it harder to trade. Just as we have done with the US and India, this Labour Government are striking deals to bring down bills for British people and open new opportunities for British businesses.

Since that summit, I have led negotiations with the European Commission to implement the commitments we made. I am therefore pleased to inform the House that, earlier today, the UK and the European Commission concluded negotiations for the UK’s association to Erasmus+ from 2027. This will open up world-class opportunities for students, teachers, youth workers, sports sector professionals and communities of all ages in our education, training, sport and youth sectors—both for the professionals who work in those sectors and, crucially, for our young people.

For students, this means more chances to study, train, work or volunteer abroad, gaining language skills and experience that will make them attractive to employers; for our teachers, youth workers and those who work in the sports sector, it means greater opportunities for professional development; and for our schools, colleges, universities and providers, it means access to networks and partnerships that will drive quality, encourage research links, and enhance the reputation of the UK’s world-leading education system. This morning, I met students at New City College in Hackney to see the range of benefits there are going to be, including playing basketball.

As part of Erasmus+, participants can travel to any European Union member state, as well as to several countries outside the European Union. It will go further than schemes that have come before, offering a broader scope of activity and a specific focus on unlocking opportunities for all. It is an investment in opportunity for young people from all backgrounds, for our workforce, and for our future. It will open doors for tens of thousands more young people across the UK, renewing our ties with Europe and beyond. This Labour Government have always been clear that we want young people to have access to the best opportunities in life, no matter what their background or where in this country they live. That is what we have consistently delivered, and it is what we are delivering through today’s announcement.

We are pleased that the EU has agreed financial terms that represent a fair balance between the UK’s contribution and the benefits the programme offers. The 30% discount in 2027, compared with the default terms in the trade and co-operation agreement, has paved the way for UK participation in the programme.

We also agreed that there will be a review of the UK’s participation in the programme 10 months after our association, so that we can look at the actual data concerning the demand for funding in the UK. Going forward, any continued participation in Erasmus+ under the next multi-annual financial framework will be informed by that data and our experience of association in 2027. We have always said that we will not sign deals unless they are in the national interest, and in this case I am happy to say that the agreement passed that test.

The Government will now work to maximise take-up across all sectors so that the benefits of Erasmus+ association can be fully realised. We will work closely with institutions and our young people to support this, particularly among disadvantaged groups. A UK national agency will be appointed to administer the programme in due course.

In addition, I am pleased to inform the House that the UK and the European Commission have concluded exploratory talks on the UK’s participation in the EU’s internal electricity market. The details of this will be set out in an exchange of letters between me and Commissioner Maroš Šefčovič, to be published next week. Closer co-operation on electricity will bring real benefits to businesses and consumers across Europe. It will drive down energy costs and protect consumers against volatile fossil fuel markets. It will also drive up investment in the North sea and strengthen energy security. The UK and the EU will now proceed swiftly with negotiations on a UK-EU electricity agreement.

But that is not all. I welcome the clarification from the European Commission today that, in practice, there should be no carbon border adjustment mechanism costs levied on UK electricity exports—a welcome development that reflects our extensive use of renewables. Negotiations to link our carbon markets are also under way, which will cut costs, make it cheaper for UK companies to move to greener energy and, once agreed, save £7 billion-worth of UK goods exports from EU CBAM charges.

Negotiations on the food and drink agreement are also under way, which will enable food and agriculture businesses to trade more cheaply and easily by slashing the red tape and costly paperwork introduced by the last Government, which result in businesses facing £200 for export health certificates on every single shipment, or small businesses choosing not to trade with the EU altogether. Our new agreement will put this right, boosting our exports, cutting costs for importers, and bringing down prices on supermarket shelves.

The UK and the EU are committed to implementing the commitments of the May 2025 summit in a timely manner. We are working swiftly to conclude negotiations on the food and drink deal and on linking our carbon markets by the time of the next UK-EU summit in 2026. Across all these areas, the UK is clear that there will be no return to the single market, the customs union or freedom of movement. We will agree deals that are in our national interest. The Government are exercising our sovereignty to deliver for the British people.

We are committed to building this new strategic partnership with the European Union. Indeed, last week I spoke with my counterpart in the Commission, Maroš Šefčovič, and we underlined our shared commitment to implementing the common understanding that the Prime Minister and the Commission President agreed at the UK- EU summit in May. Whether it is through boosting opportunities for young people and educators across the country, cutting energy bills or agreeing a food and drink deal that slashes red tape and cuts costs, I will always negotiate in the interests of this country and our people.

I will continue to lead negotiations with the Commission. I look forward to the next annual UK-EU summit, where the Government will continue to build that new strategic partnership. That is what a grown-up, pragmatic relationship looks like. We work together under shared aims for mutually beneficial solutions to our shared problems. That is the approach the Government are taking and that is the approach that is delivering results. I commend this statement to the House.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the shadow Minister.

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[Nick Thomas-Symonds]

My hon. Friend is quite right about the wonderful opportunities that this presents, and not just for self-confidence; the young people I spoke to only this morning at a further education college told me that going overseas had helped them to grow as people. However, the House should not just take my word for it: the Association of Colleges says that this is “brilliant news” for further education colleges. Universities UK says that it is

“fantastic news for the UK”.

The Russell Group of universities is “delighted” about this reassociation. But who is opposed to it? The Conservative party.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Liberal Democrat spokesperson.

[Dr Al Pinkerton (Surrey Heath) (LD)]

We welcome the Minister’s announcement. As a recovering academic—a distinction that I think I share with him—I have witnessed at first hand the impact of our exiting the Erasmus scheme on university student intake. Welcoming students from across the EU into our education institutions and giving our own students opportunities to study abroad have undeniably strengthened our education system, so after years of campaigning, the Liberal Democrats welcome the news that the UK is finally set to rejoin the Erasmus scheme in 2027. However—I am sure the Minister expected there to be a “however”—while this represents an important first step towards building a closer relationship with Europe, I urge him to go further and faster.

Beyond this fixed-term experience of Erasmus+, will the Government commit to a proper youth mobility scheme for the benefit of the next generation, and can he update the House on what progress has been made in such negotiations? How confident is he that our food, drink and sanitary and phytosanitary scheme will be agreed by 2026, and how long thereafter will it take to fully implement the scheme? Agrifood and horticultural businesses cannot afford any further delays.

Finally, on the subject of unnecessary barriers to trade—which is where the Minister began his statement—will his Department commit itself at the very least to conducting a transparent assessment of the potential economic growth benefits of a UK-EU customs deal of the kind that the House voted for last week?

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[Nick Thomas-Symonds]

My hon. Friend is quite right. Tens of thousands more people, many of them young people, will benefit from the accession to Erasmus+, although I seriously think, on the basis of what the shadow Minister said, that the Conservatives will go into the next election opposing those additional opportunities for people. As for my hon. Friend’s second point about reducing trade barriers, since Brexit 16,000 businesses have stopped trading with the EU altogether, and as for the food and drink agreement, she can be assured that work is ongoing to seek to complete those negotiations by the time of the next summit.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call the Chair of the Select Committee.

[Simon Hoare (North Dorset) (Con)]

In his white shirt and red tie, the Minister is doing a very good impression of Santa making an early visit. The announcements that he has made this afternoon are—I think—to be warmly welcomed, and he is to be personally congratulated on the good faith and patience that he has shown in his conversations with Maroš Šefčovič and others. That is clearly paying dividends.

Does the Minister agree that those of us on the Opposition Benches who last week voted against the idiotic proposal from the Liberal Democrats for a customs union have been proved right and then wrong, because the evolution of the relationship within the guardrails of the existing arrangement are the way to go, preserving those new free trade deals and seeing them extended while encouraging businesses to trade with Europe?

[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. We have less than 45 minutes for this statement, so questions must be short.

[Uma Kumaran (Stratford and Bow) (Lab)]

I thank the Minister for his announcement on Erasmus+, which is hugely welcome news for students and for my youngest constituents in Stratford and Bow. Before I came to this place I worked with the Mayor of London in calling for an Erasmus scheme, and the UK-EU Parliamentary Partnership Assembly, of which I am a member, has called for it constantly, alongside our European partners. We want students to have the same chances of opportunity that we had, so that they do not suffer the consequences of a Brexit that they had no say in. Can the Minister outline the next steps in the UK’s participation?

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[Madam Deputy Speaker (Ms Nusrat Ghani)]

Briefly outline, Minister.

[Nick Thomas-Symonds]

I am grateful to my hon. Friend for the work she does co-chairing the PPA. In 2026, it is critical that we have both the national agency and the simplest possible process for people to access a very wide range of benefits. I hope that was short enough, Madam Deputy Speaker.

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[Several hon. Members rose—]

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. I have only 20 minutes remaining, so Members must keep their questions short and answers just as short.

[Dame Harriett Baldwin (West Worcestershire) (Con)]

Could the Minister just spell out for the House’s benefit how much taxpayers’ money he has signed up to spending next year and in every year of this Parliament? On where Members of Parliament can read about value for money, which line item of the Budget has this money come out of?

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[Nick Thomas-Symonds]

I can update the hon. Gentleman and will write to him on the three specific countries he has mentioned, but I also say that the announcement I have made today on Erasmus+ clearly opens up even more opportunities for schools, which I am sure will be widely welcomed.

[Madam Deputy Speaker (Ms Nusrat Ghani)]

I call “Christmas jumper” Phil Brickell.

[Phil Brickell (Bolton West) (Lab)]

As a former Erasmus student, I congratulate the Paymaster General on the steely resolve, the pragmatism and the significant progress he has been able to achieve. Only a few weeks ago, two fellow Erasmus students from the UK who I studied with in Germany were in this place. I was with them for the first time in 13 years, and they have messaged me today to congratulate the Government. Does my right hon. Friend agree that it is most important to deliver on the concrete commitments agreed with our EU partners at the May summit, as opposed to heeding Lib Dem Members’ siren calls about a supposedly bespoke customs union?

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[Dr Scott Arthur (Edinburgh South West) (Lab)]

I refer colleagues to my entry in the Register of Members’ Financial Interests. I thank the Minister for his statement, although I am trying hard to visualise him playing basketball at Hackney college this morning. Perhaps photographs are available to confirm that it actually happened—apologies for that, Madam Deputy Speaker.

Some 73% of university-age young people voted against Brexit—they voted to remain in the EU—so Erasmus always felt like a spiteful act, and I am really pleased that we are able to correct that injustice today. I worked in the university sector for almost 30 years before being elected to this place—hard to believe, I know—so I understand the benefits of Erasmus, but I do agree with the Minister that it was not a completely democratic process, and that it was middle-class students who tended to take part. How will he ensure that that changes? Will there be monitoring, perhaps, or will he consider targets?

[Madam Deputy Speaker]

Order. A tip for other questioners: the question does not require a preamble.

[Nick Thomas-Symonds]

I may have been putting it a bit high when I said that I was playing basketball, but I did contribute in my own way.

On my hon. Friend’s second point, obviously the Erasmus+ programme has changed so that a wider range of activities is available, from youth work and adult education to sports, but there is also additional support in Erasmus for those from disadvantaged backgrounds. My hon. Friend is right about monitoring it, but my priority for the next few months will be driving that participation in the first place.