European Union (Withdrawal) Act

Rushanara Ali Excerpts

Wednesday 9th January 2019 Commons Chamber

[Stephen Barclay]

The hon. Gentleman nods. I think many other Labour Members would agree. Members have to accept the risk of a no deal, therefore, and as a Government, we have to be responsible. We certainly do not want a no deal; I join him in not wanting that. Some Members are very relaxed about a no deal; I do not agree that we should be relaxed about it, because of issues such as data and qualifications, which I think they need to address.

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

rose—

[Stephen Barclay]

I will take one more intervention, and then I will wind up my speech.

[Rushanara Ali]

Yesterday, outside the House, the Secretary of State said that he was beginning to get used to being a punch bag in the House, so I shall try not to metaphorically punch him.

The Secretary of State has said that no deal would be irresponsible. In the light of the recent votes, I hope that he can rule it out, because it would be catastrophic. The Bank of England’s analysis shows that, in a worst-case scenario, the economy would be 8% worse off and unemployment would be 6.5% higher, and the current deal—the Government’s deal—would make our economy nearly 4% worse off. Neither of those are good prospects for our country. Can the Secretary of State at least keep an open mind about a public vote if all else fails?

[Stephen Barclay]

I respect the concern that the hon. Lady feels, but it is not in the power of an individual Minister to say that that will not happen, because the House has to decide what it is for; it is very good at saying what it is against. The reality is that having triggered article 50, we either leave with a deal or we do not. I do not think it is credible to say that we can negotiate another deal in 78 days, as Opposition Front Benchers have suggested. I think that the alternative would pose a risk to the peace process, which is a fine achievement that should be cherished, but it cannot be ruled out. That is why the deal on the table is the right deal, and one that we should support.

--- Later in debate ---

[Rushanara Ali (Bethnal Green and Bow) (Lab)]

Britain in the European Union has been at the heart of building peace, security and prosperity. We have played a critical role in promoting the ideals of democracy, human rights, equality and freedom. We have worked with our European partners to fight extremism and terrorism, to protect the environment, to improve labour standards for our citizens and to contribute to tackling global poverty, conflict and inequality.

Since the referendum, the Government have failed to build coalitions and consensus. They have failed to prioritise economic reality over fanciful ideology. They have failed to put aside party interest in favour of the national interest. That failure is reflected in the dreadful deal secured, after two years, by the Prime Minister. It leaves us as rule takers at the mercy of the EU, when we were once equal partners setting the agenda and making the rules. It leaves us fundamentally worse off, costing billions of pounds that could have been spent on tackling the appalling social problems caused by the programme of austerity implemented by the Government: crime, child poverty, inadequate social care, rising homelessness and the housing crisis. There have been cuts to education, early years funding and much else.

The deal leaves businesses facing years of uncertainty and without clarity on our future trading relationship with the European Union. It gives little clarity on what protections there will be for workers’ rights and the environment after the implementation period. It leaves us in a much weaker position to negotiate trade deals with non-EU countries, whenever it is that we might be free to do so. We have heard from many knowledgeable Members about how long that might be. It is not likely to be done in two years; it is more likely to be in five, six or seven years. The EU has been successful in negotiating over 50 trade agreements with third countries. Britain is stronger negotiating as part of an EU bloc with big emerging economic powers. It leaves us worse off, and the golden promises made by the leave campaign have so far failed to materialise. They were totally unrealistic. They were incredibly misleading and untruthful. They were unfair on the British people, because they were so untrue and misleading.

Since 2016, the uncertainty due to the result of the referendum has already cost the UK more than 2% of GDP. Households are £900 a year worse off and investment has gone down dramatically. The Prime Minister has said that the impact of leaving the EU does not show that we will be poorer, but that is exactly what the Government’s own analysis of leaving the EU shows. Under the Government’s deal, the economy will be 3.9% smaller. That is the equivalent of over £100 billion a year. The average person will be over £1,000 worse off and real wages will be 2.7% lower. Trade barriers would be 10% of the value of the services trade. The Government are also asking us to spend £39 billion to make people poorer.

How can I vote for a deal that makes us even more worse off, when thousands of people in my constituency rely on jobs in financial services, the tech industry and other companies that trade with the European Union? They desperately need access to the single market and the customs union. Even before we leave the EU, half of all children in my constituency live in poverty thanks to the appalling policies of this heartless Government. The Government’s austerity programme has led to schools facing millions of pounds of cuts, homelessness doubling, and crime, including violent crime and knife crime, soaring because 200 police officers have been laid off—nationally, the figure is 21,000. I cannot understand how the Government can claim that this is the best they can do, when Britain stands to lose so much. The provisions and the cost of Brexit will result in less money for investment in our public services because of the tens of billions of pounds we will have to spend under the Prime Minister’s deal or no deal, which is the choice she is threatening us with.

In the future trading relationship—the political declaration, which many colleagues have already mentioned—the Government no longer promise frictionless trade, only the possibility of co-operation. A future customs arrangement could consist of technology solutions that do not even yet exist and are likely to cost tens of billions of pounds. Financial services—which contribute 6.5% of total economic output, more than £27 billion of tax annually, and employ more than 2 million people around our country—get just three paragraphs.

I refer to financial services because my constituency sits between the City of London and Canary Wharf, which power our economy. Too often this Government fail to prioritise or think about the long-term impact of our leaving the single market and customs union on those sectors that provide so much tax revenue and so many jobs in our country. As many hon. Members have mentioned, the services sector accounts for 80% of the economy, yet the future trading relationship lacks clarity on the kind of access we will have to the single market. The relationship for UK firms in the sector will be based on equivalence, which is much worse and more limited than what we have now. That means the loss of passporting rights and 16 million people facing uncertainty about their insurance policies. There also remains no clarity about how about £28 trillion-worth of derivatives—the infrastructure that allows banks and their clients to manage risk, cash flow and capital positions—could be affected.

When the Prime Minister decided, hastily and irresponsibly, to start the clock by triggering article 50—which some of us voted against—she had no strategy. She did not have a plan and put our country in a terrible position and at the mercy of EU negotiators, who had the upper hand. In 2017, the UK’s former ambassador to the EU, Sir Ivan Rogers, told the Treasury Select Committee:

“If you wanted to avoid being screwed in the negotiations…say: ‘I will invoke Article 50, but only under circumstances where I know exactly how it’s going to operate’.”

That is not what happened. The Prime Minister did not heed that advice and the country is paying the price for her mistake.

The Prime Minister has failed to listen to concerns relayed to her by Members from across the House, including at a meeting she held yesterday, rather belatedly—nearly two years after triggering article 50—with Members of different parties. She missed the opportunity to bring the House together from the beginning, as others have pointed out. She has been beholden to managing divisions in her party, which has been ripping itself apart, making a mockery of our country in the rest of the world. Let us not forget that the rest of the world, which historically has seen us as an important ally, is looking at us in dismay. When Conservative Members talk about global Britain, they should remember how their behaviour in tearing themselves apart, and how their divisions tearing the country apart, look across the world. They are far from presenting an image of the inclusive, mature, global Britain required in the face of the huge challenge we have to address.

By giving us a false choice between her deal and no deal, the Prime Minister is holding a metaphorical gun to our heads. That is utterly irresponsible and she and her Ministers need to stop doing that. We will not accept that false choice. The no-deal scenario is utterly catastrophic. The Bank of England’s worst-case scenario points out that no deal could shrink our economy by 8%, and unemployment could increase dramatically, with inflation spiralling out of control. Many constituencies will suffer job losses in a no-deal situation, but mine will be among the worst off—according to the UK Trade Policy Observatory at the University of Sussex, thousands of residents in Bethnal Green and Bow will lose their jobs.

Yesterday’s amendment to the Finance Bill demonstrates that there is no majority for crashing out of the EU with no deal. I believe there is a majority for seeking to secure permanent customs union and single market access, and the Government should do so. As they are running down the clock, article 50 must be revoked. But of course the best deal on offer is membership of the EU. The Government promised the exact same benefits, but they now offer something that will damage our economy.

I cannot support this deal, because I believe it will make our country and my constituents worse off. The Government’s own analysis points to that. We should allow the public a final say, with a choice between the Government’s deal and remaining in the European Union. I and many of my constituents joined more than 700,000 people to march in the streets of London for a people’s vote. I believe that is the only way to settle this matter, and I hope the Government will consider that option when this deal is voted down, as I believe it will be; otherwise, they will destroy livelihoods, cause job losses, damage our economy and diminish our place in the world. Nobody wants to see that happen to our country.