Backing Business to Create Economic Growth
Debate between Robin Swann and Ben Coleman(3 weeks, 3 days ago)
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Ben Coleman
It will come as no surprise to anybody that what the previous Prime Minister said and the truth perhaps did not have the closest of relationships.
It is absolutely no surprise, looking at what has happened, that the London School of Economics found that new border checks and paperwork pushed up UK prices by more than 7% between 2019 and 2023, adding around £250 to our grocery bills. It is also no wonder that 20,000 small businesses, all with fewer than 10 employees, have simply stopped exporting to Europe—not by choice but because the costs got too high.
The war with Iran is making things even worse. It is pushing up energy and food costs around the globe. Our country’s economic security demands that we do all we can to reduce business costs and limit price increases, working with our European allies. That is where the European partnership Bill comes in. For months now, the Government have been negotiating a new sanitary and phytosanitary—food and drink—agreement with the EU. This would sweep away the certificates, checks and fees that have added so many costs to food and agricultural trade with Europe. The aim is to wrap that up by the next EU summit, but to bring it into force we need the European partnership Bill.
Under the SPS deal, multi-page export health certificates, phytosanitary certificates, port health authority costs and sampling costs would all go. The Bill will support that. It will also provide the framework to implement an emissions trading agreement, which will link the UK’s emissions trading scheme with that of the EU. That will give us a larger, more stable carbon market, support investments in new technologies and help us to decarbonise more efficiently. Together, the food and drink deal and the emissions trading agreement could add nearly £9 billion to the UK economy by 2040.
Ben Coleman
I am afraid I will not; I have given way twice, and I do not think I will get any more time.
The European partnership Bill will also give Ministers the essential power to keep UK regulations in step with EU rules more broadly, without needing an Act of Parliament every time. The jargon phrase that we have heard is “dynamic alignment”—keeping our rules compatible with those of our largest trading partner, rather than constantly playing catch-up.
Crucially, this is not a one-way street. Unlike the situation we have now, this will give the UK a seat at the table in Brussels where food standards are being developed. Parliament will also retain its say before any EU rules are applied here. We will be replacing the patchwork of ad hoc fixes that we have now with a clear and stable framework that businesses can plan around. Importantly, if we pass the Bill, which I expect we will, that will be a sovereign decision, freely made—not because we have to but because the prize is too great to walk away from.
The European partnership Bill will deliver real relief and real advantages for food and drink businesses now. It will pave the way to bringing down costs in other areas such as chemicals, pharmaceuticals and automotive. It is a patriotic and hopeful Bill. It will boost British business and strengthen our country’s economic and energy security. I look forward to it building our country’s growth and future in Europe.