European Union: UK Membership
Debate between Tim Roca and Clive Jones(1 week, 3 days ago)
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Clive Jones (Wokingham) (LD)
It is a pleasure to serve under your chairship, Sir John. I thank the hon. Member for Colne Valley (Paul Davies) for introducing the debate, and Robert and others for originating the petition.
Brexit is an issue that continues to shape the future of our economy. Way back in 2016, promises were made that our departure would lead to a stronger, more prosperous economy—promises from the likes of Boris Johnson, Jacob Rees-Mogg and the hon. Member for Clacton (Nigel Farage). However, today we stand here confronting the harsh reality that those promises have not been fulfilled. Instead, costs have gone up and supply chains are disrupted.
Research from the London School of Economics concludes that leaving the EU reduced the value of our goods exports by an estimated £27 billion in 2022—a sum so large that it would plug the black hole created by the Conservatives’ mismanagement of the economy and leave enough to build two and a half new Royal Berkshire hospitals on the edge of my constituency. The same study estimated that 14% of firms that previously exported to the EU have now stopped.
I know of one company that used to export over £0.5 million-worth of product to the EU, but the business with the EU stopped straight after Brexit. Recently, the owner told me that after several years they had got the business back. That was seemingly good news, but when I asked them what the profit margin was, they said, “Absolutely shot away”—nothing like it was before. That is one of the damaging effects of Brexit, and those are the losses felt by real people in our communities. Small businesses have been left to suffer most from the Conservatives’ legacy of creating trade barriers that are so expensive to overcome.
Tim Roca
The hon. Member talks about ridiculous trade barriers, which we have heard a lot about today. I and other members of the Select Committee on Environment, Food and Rural Affairs were in Dover to see the preparations that the previous Government had made on trade barriers, particularly in relation to agricultural products coming into the UK, and were shocked to discover a £20 million facility in Bastion Point that was built but will never be used. Does that not exemplify Tory incompetence?
Clive Jones
It certainly does. They certainly know how to easily waste £20 million. They showed us that they were very good at doing that.
Shockingly, it is estimated that from 2021 up to the end of 2023, nearly 2 billion additional pieces of paper had to be filled out by British exporters as a result of our leaving the EU. They range from export declarations to transit declarations, origin certificates and other documents with obscure acronyms. It is a Gordian knot of red tape. It is a figure so large that if all 2 billion pieces of paper were put end to end, they could wrap around the circumference of the Earth 14.7 times, or reach the moon and come halfway back again. When the Government said that Brexit would be a stellar success, that was not what I thought they had in mind.
Marks and Spencer recently hit out against the Brexit bureaucracy that plagues our economy. I want to share some of its examples because they perfectly illustrate the day-to-day impact of the current Brexit deal in constraining our economy’s ability to grow. Before Brexit, lorries full of produce going from Scotland to the Republic of Ireland would need just one piece of paper listing what was in the trailer before setting off. Now, its trucks are armed with more than 200 pieces of paper, which take hours to complete and require niche details such as the Latin name for the chicken used in its tikka masalas. About 7,000 different Marks and Spencer products destined for Irish customers require export health certificates, and each certificate requires a vet to sign it off, costing Marks and Spencer more than £1 million a year. Exporting to the EU has become a nightmare, even for bigger companies, because of unnecessary administration and physical checks.