European Union (Withdrawal) Bill

Debate between Peter Kyle and Helen Goodman

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

[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.