European Union (Withdrawal) Bill

Peter Kyle Excerpts

Committee: 5th sitting: House of Commons
Wednesday 6th December 2017 Commons Chamber

[Tom Brake]

I certainly agree with the intent behind what my hon. Friend says, although I would hesitate to call the vote confirmation of the original vote; this vote would be different in nature, given the facts now available to us—given that the initial settlement will be £45 billion or £50 billion; that huge problems have been created at the border between Ireland and Northern Ireland; and that 16 or 17 months on, the issue of EU citizens here is still not resolved.

[Peter Kyle (Hove) (Lab)]

The right hon. Gentleman has sparked a highly relevant debate. The referendum asked whether we should leave or not. What we are debating in the Bill is how we leave. We have learned that the process is a series of decisions; there is not one way to leave the EU. We need to keep every option open, not shut doors as this Government are doing, so that if the public mood shifts, as it might well do, all options are open.

[Tom Brake]

I agree. I am sure that the hon. Gentleman will regret, as many Opposition Members and I do, that very early on, the Government shut down some of the options available to us regarding the single market and the customs union. There was no attempt by the Government to negotiate with the European Union on whether there was scope for the EU to give ground, including on freedom of movement. I know from contacts that I have had that there would have been some appetite among some EU countries to give ground on freedom of movement, but that is not something that the Government sought.

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[Helen Goodman]

That is a good, eminently sensible idea. I will return to the public’s attitude when I wind up my remarks.

This is a significant sum. When we bailed out the banks 10 years ago, we spent £133 billion. Now we are talking about a figure of £50 billion, which will have a significant impact on the public finances. I am sympathetic to the remarks of the hon. Member for Aberdeen North (Kirsty Blackman) on the inadequacies of the current estimates procedure. Given that this is an exceptionally large sum of money on an exceptionally important item, and given that this is exceptionally politically sensitive, we expect a much better way for Parliament to approve the sums of money. That is what new clauses 17 and 80 are driving at.

I am worried about the impact on the public finances. Not only is this a big number, but it seems to be a big number that the Chancellor did not take into account when putting together the Red Book, in which he included the current net payments to the EU of £9 billion a year up to 2019 and, thereafter, £12 billion a year of continued expenditure on items coming back to this country that are currently the responsibility of shared EU programmes, such as agricultural support, universities and R and D. He put in £3 billion for transitional costs, such as new computer systems at HMRC and the Rural Payments Agency, but he did not put anything in for the divorce bill. His forecast of the deficit coming down and of debt starting to fall towards the end of this Parliament is bound to be wrong unless the Government present the British people with a whopping great tax bill.

[Peter Kyle]

Does my hon. Friend agree that, considering our current trajectory under this Government, the other big black hole in the Red Book is how much we will have to pay for access to the single market after we leave?

[Helen Goodman]

My hon. Friend is right, but I am confining myself to the impact of new clauses 17 and 80.

We need to understand how Ministers will cope with this big bill when the deal is done. Will Ministers give everybody a massive tax bill—and it will be a massive tax bill, because we are talking about at least £800 per person, or £3,000 per household—or will they increase Government borrowing?

I return to the simple point about the promises that were made by, among others, the Under-Secretary of State for Exiting the European Union, the hon. Member for Wycombe (Mr Baker), during the referendum campaign—the £350 million a week for the NHS that we saw on the side of a bus. This is £16 billion a year. After the Brexit vote, I had a number of public meetings with my constituents and asked them what their expectation was when they voted to leave the EU. I will never forget this nice old lady saying, “Helen, it will be marvellous, because now there will enough money for the Government to reopen the A&E in Bishop hospital.” That is obviously not what the Government have in mind. It is incumbent on them to be open and clear with the British public, and that is what new clauses 17 and 80 are driving at.

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[Graham Stringer]

I am grateful for your comments, Mr Hanson. You are right I have not been present in this particular debate for the whole time, but I have been in many of the debates and this is the first time I have stood up to speak on the issue. I shall not detain the Committee for very long.

Following on from the comments made by my hon. Friend the Member for Stockton South (Dr Williams), of course people in every democracy have the right to change their minds. The correct way to do that is through the same means by which the referendum came about in the first place: a political party should say in its general election manifesto that it wants a referendum, win that election and hold another referendum. The Lib Dems tried that at the most recent election; admittedly, they gained seats, but they lost votes. That is the way to do it, not by calling on the most immediate opinion poll.

Opinion polls change. My hon. Friend the Member for Stockton South and other Members may be interested in a poll taken by Lord Ashcroft the day after the referendum. He surveyed all those people who had voted for Brexit and found that 94% of them had not voted for it on economic grounds, so a lot of the arguments about economics do not apply to the people who voted to leave.

[Peter Kyle]

To clarify a point, the 2015 Labour manifesto opposed a referendum; Labour was led then by my right hon. Friend the Member for Doncaster North (Edward Miliband). Two weeks after the general election, we were whipped to vote for the piece of legislation that enabled that, and the Labour party did so. Did my hon. Friend think that we were wrong because it was not in our manifesto? We opposed a referendum in the manifesto

[Graham Stringer]

I have to say that I found it a bit curious, having voted for a referendum for many years, to find all my Labour colleagues finally in the same Lobby as me. The argument given by the leadership at the time was that the election had been lost, the public had voted by a majority for a referendum and it was going to recognise that.

On the financial issues, I am always in favour of transparency, which is what the essence of this argument is about. It is difficult for any Member not to be in favour of transparency, but with regard to the actual wording of the amendments, they are rather biased in terms of costs and do not, as I would have preferred, put the savings in the context of what we do not have to spend. As has been said, in all certainty, net, there will be a saving. People opine that there will be huge costs to leaving the EU. I do not know what the Government are likely to pay or not pay. I suspect that they will end up paying too much, but if we look at the history of the common market and the EU, over that period, we have probably paid half a trillion pounds net—a huge amount of money. What has been the benefit of that? We have gone from having a balanced trade with the EU to running a deficit of about £70 billion a year.