EU Membership: Economic Benefits

Debate between Steve Reed and Lyn Brown

Wednesday 15th June 2016 Commons Chamber

[Mr Steve Reed (Croydon North) (Lab)]

This afternoon I want to focus on why it is important for Croydon North that Britain remains a member of the European Union. Croydon North is part of an outer London borough, but it has many of the features of an inner-city area: an extremely diverse population, high levels of youth unemployment—particularly, sadly, in the black community—and too much poor quality housing, particularly in the private rented sector, but it also has a very enterprising and ambitious population.

Croydon is at a crossroads. The Labour council elected two years ago has announced a massive £5 billion regeneration project for the town centre that will affect the whole borough. It will reshape the retail centre around a new Westfield-Hammerson’s shopping mall, including thousands of new homes, thousands of new jobs, new education and leisure facilities, and a growing new tech hub. Being a 15-minute train journey from Gatwick in one direction and central London in the other, Croydon is ideally placed to take advantage of being part of the world’s biggest trading bloc.

The future looks bright for Croydon, but a big question-mark hangs over it all, and that is the threat of Brexit in next week’s referendum. The investors Croydon hopes to attract will think again if Croydon is outside the European Union. They do not want trade barriers blocking their access to Europe and they will think twice about investing in an economy that is going backwards into recession.

If we tried to stay in the single market without EU membership, we would be subject to EU rules and freedom of movement, like Norway and Switzerland are, but without the veto we currently have: the same circumstances, but no voice.

[Lyn Brown (West Ham) (Lab)]

That is the one argument that people on my street just are not aware of. They think we can have a trade agreement with the EU and still lower the immigration from EU countries. It simply is not true, because we would have to sign up to the same freedom of movement. We need to get that message out.

[Mr Reed]

That is absolutely true. I am sure my hon. Friend is doing as much as she can in her constituency, and I am going to be doing as much as I can in mine.

We would become weaker, not more powerful, if we left the EU. We would lose control over our destiny, not gain it. The Governor of the Bank of England has warned that a vote to leave the EU could trigger a recession, and nine out of 10 economists agree with him that Brexit would damage the economy. A vote to leave next Thursday would be the first time a country had voluntarily chosen to throw its economy into recession, and that would mean more job losses, lower tax revenues, a growing deficit, more cuts in public services like health and education, rising interest rates to prop up the pound and, because of that, higher mortgages. And it is not the wealthy élite that will suffer; it is ordinary people in places like Croydon North.

Immigration has helped London’s economy to grow, and it has benefited Croydon immensely. Where there are pressures because of immigration, like housing or the NHS, those are not the fault of immigrants, who put in more than they take out; they are the fault of a Tory Government who are underfunding our health service and selling off social housing. We cannot allow immigrants to be scapegoated for the failures of this Conservative Government.

Too many people in Croydon work long hours for low pay in insecure jobs. Their lives would become harder still without the employment protection that comes from our membership of the EU. Pro-Brexit Tories have already made it clear that they cannot wait to leave the EU so that they can cut workers’ rights in half. That is exactly what one of them has said they want to do. They want to remove rights for part-time workers and parents, increase working hours, and reduce paid leave. It was the European social chapter that triggered the Tory revolt on Europe, not because they want to protect British workers, but because they want to exploit British workers.