EU Membership Referendum: Impact on the UK

Roz Savage Excerpts

Tuesday 24th February 2026 Westminster Hall

[Yuan Yang (Earley and Woodley) (Lab)]

We know so much now, 10 years on from the referendum, about the economic impacts of the Conservative Brexit deal. I will not spend too much time discussing them, other than to say that they come up every time I knock on a door in Reading that belongs to an owner of a small or medium-sized enterprise. Across the UK, their exports have fallen by almost a third since Brexit. We are now bearing the costs of that.

[Dr Roz Savage (South Cotswolds) (LD)]

Will the hon. Lady give way?

[Yuan Yang]

No thank you.

There is much we can now do to mitigate the costs of Brexit for our constituents, including securing a sanitary and phytosanitary veterinary agreement with the EU. I ask the Minister to give an update on the progress of that. Colleagues on the living standards coalition of MPs found that securing such an agreement could reduce EU food import prices by between 3% to 6% in the next few years. That will go a substantial way to reducing our constituents’ cost of living.

In order to move forward, we have to look at where we are now and see how the world sees us. In my previous job reporting on trade from Brussels as a British journalist for a British newspaper, I would often attract wry comments from other members of the European Commission and community about my nationality and the choices that my country made. During the years of the Brexit negotiations, we had five Foreign Secretaries and six Business Secretaries, so no wonder they had some comments about my Government.

Contrast that with the reception that our Prime Minister had at the Munich Security Conference. I was in the audience and heard the spontaneous applause when the Prime Minister declared that

“we are not the Britain of the Brexit years anymore”,

that we must

“build a stronger Europe and a more European NATO”,

and that

“there is no British security without Europe, and no European security without Britain.”

Security does not just mean defence—it means food, energy, and climate and the environment, and I am proud that in my constituency we have one of the last remaining European institutions headquartered in the UK: the European Centre for Medium-Range Weather Forecasts, which will build on its new site. Soon, it will raise the British flag alongside the flags of all its partners.

--- Later in debate ---

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

I am very grateful to the hon. Member for Arbroath and Broughty Ferry (Stephen Gethins) for securing the debate. In 2016, the British people were offered a vision of life outside the European Union built on easy promises: £350 million a week for the NHS, effortless global trade deals, and all the benefits of membership with none of the obligations. There was no detailed blueprint, no agreed destination and no serious plan. As the still comparatively new Member of Parliament for Surrey Heath, I am acutely aware that my predecessor played a large part in leading us down that track.

Ten years on, we are living with the consequences of those events. The National Bureau of Economic Research estimates that Brexit has suppressed UK GDP by between 6% and 8%, a loss equivalent to around £250 million a day. The trade deals struck with Australia and New Zealand amount to a fraction of 1% of GDP. They do not come close to compensating for the loss of frictionless trade with our largest and closest market, Europe.

[Dr Savage]

With the President of the United States threatening a 15% blanket tariff on all trade with the US, does my hon. Friend agree that a closer relationship with the EU should be at the top of our priority list?

[Dr Pinkerton]

The capriciousness of the United States makes the case for closer economic co-operation with Europe all the greater. This is not abstract. Businesses up and down the UK are grappling with rules of origin paperwork, border delays and lost contracts. Investment is held back. Productivity is squeezed. Growth has slowed.

This is not only about economics. Three quarters of young people voted to remain. A generation has lost the freedom to live, work and study across Europe. We withdrew from Erasmus+. We stepped back from the easy exchange of ideas and opportunity that strengthened our country. At a time of war in our continent, and growing geopolitical instability, stepping back from Europe has not made us stronger. It has left us more exposed.

The Liberal Democrats have always been clear: Britain’s future lies at the heart of Europe. We are unapologetically pro co-operation, pro political and economic unions of all shapes and sizes, and pro-European. We believe that sovereignty in the modern world is strengthened by partnership. Pooling power with allies does not diminish Britain: it amplifies us. That is why we have proposed a new UK-EU customs union—a practical, deliverable step to rebuild economic partnership and provide certainty for British businesses, including those in Northern Ireland.

Last year, the House backed that approach in a vote that, for the first time in years, appeared to nudge the Government into speaking seriously about rebuilding our relationship with Europe. A customs union would remove tariffs and rules of origin barriers, cut border friction, strengthen supply chains and support growth. It is neither the final destination nor the sum total of our ambition for the UK—I draw the attention of the hon. Member for Arbroath and Broughty Ferry to our four-point plan—but it is the next step in restoring a close economic partnership with the European Union and rebuilding trust with our largest trading partner. That is absolutely essential in the low-trust environment created by the events of the last 10 years.

Britain was, and will always be, a European country. Our prosperity, security and influence depend on recognising that fact. This is not a debate about the past. It is not a betrayal of 2016, as some would have us believe. It is a test of whether we are prepared to act now in the national interest. It is time to be ambitious for the United Kingdom again. It is time to rebuild a serious partnership with Europe. It is time to deliver growth, widen opportunity and secure Britain’s place at the heart of European economic, cultural and strategic life.