Covid-19: Future UK-EU Relationship

Wendy Chamberlain Excerpts

Wednesday 15th July 2020 Commons Chamber

[Wendy Chamberlain (North East Fife) (LD)]

Thank you, Madam Deputy Speaker. There have been relatively few opportunities for me, as a new MP, to debate the current negotiations with the EU during this Session, so I welcome this debate. It is timely because, after several years of bluster since 2016, this week we have finally started to see some more details of what Brexit will mean in practice.

On Monday, the Chancellor of the Duchy of Lancaster set out the £705 million cost of new border infrastructure and a new comms plan, which has been reported to cost £93 million on top of last year’s £100 million defunct Get Ready for Brexit campaign. On Tuesday, the Government confirmed that some 250 million customs declarations will be required every year, at a cost of £13 billion per annum.

Some of us in this Chamber are old enough to remember that the current Prime Minister and the Chancellor of the Duchy of Lancaster promised that if we voted leave, the NHS would receive £350 million a week. We were told that leaving the EU would be easy and frictionless, but now this Vote Leave Government are spending, on my calculations, around £250 million a week to prepare us for the realities of Brexit, and that is just the tip of the iceberg. These were preparatory measures; we have no idea what the exact cost of our exit will be. There will be tariffs; the question is on what scale, and we now know that that means a deterioration in our terms of trade. It means higher costs for business, and ultimately it will mean a rise in the cost of living, which will hit the poorest in this country hardest.

I acknowledge that that means that, in many cases, those who voted for Brexit will be hit hardest, but this is not the Brexit that they were promised—all at a time when the country faces unprecedented economic disaster and the greatest public health crisis this century. This is not Project Fear; the Government’s announcements, slowly though they may have come, have continually confirmed that this is Project Reality. Members on the Government Benches might criticise me for talking Britain down, but as I highlighted in my question to the Chancellor of the Duchy of Lancaster earlier this week, the current actual financial opportunities identified by the Government equate to absolutely zero.

Back in 2016, we were told that Britain would be welcomed, as we left the EU, with open arms by the international community. Despite lots of rhetoric around trade discussions, that welcome is far from certain. That rhetoric of leaving one Union to be welcomed by a host of nations is also used by Scottish National party Members, and that is not the only parallel between the campaign to leave the union in Europe and that to leave the Union of these four nations.

I have to question the consistency of advocating, on the one hand, that Brexit is doing a great deal of damage —with which I agree; so much, in fact, that delay is required—while failing to acknowledge that leaving the UK would be even more fiscally damaging. The UK has many similarities to the EU. The UK has a single market—one which, I acknowledge, is currently being undermined by our EU departure; a customs union; and a single currency. We share a currency and other far closer and deeper economic and social ties.

Britain carries out 40% of its trade with the European Union, and I agree with the SNP that leaving that institution is having, and will continue to have, profound economic shocks, but Scotland does over 60% of its trade with Wales, England and Northern Ireland, and impacting that would be cataclysmic.

The current crisis has been a clear indicator of the fact that working together can achieve better outcomes. It is likely that we will hear that, had Scotland voted for independence in 2014, with the obvious difficulties of separating from a 300-year-old Union, coupled with a likely currency crisis, it would potentially be in a very precarious place at this time, as it dealt with covid.

Earlier, I mentioned consistency. If the pandemic had struck in a world in which Scotland had voted for independence and was in a period of transition out of the UK, do we really think the Scottish Government would have been pressing for an extension to the date of Scotland’s departure due to covid? I do not think so; it is very likely that the SNP would be ploughing on. They would probably have had the same thinking as the current UK Government: given the scale of the crisis, no one will notice a bit more chaos, and if they do, we can point to the crisis. And why? Because they, like those on the Government Benches, do not acknowledge the costs of their beliefs.

The hon. Member for West Aberdeenshire and Kincardine (Andrew Bowie) stated that the SNP looks both ways on Unions. So do those on the Government Benches. If the argument is that coronavirus has such an impact on the UK that an extension to Brexit is required, why is the SNP continuing to push for a referendum on Scottish independence?

The First Minister claims that anyone who says anything contrary to the Scottish Government at present is being a political opportunist, but, too often, her party is happy to foster the politics of grievance. Last week, the Finance Cabinet Secretary, Kate Forbes, dismissed the financial support that went directly from the UK Treasury to Scottish people and businesses as if it did not exist. We have also talked about the Barnett formula today, and one of the benefits of the support that has been delivered directly by the UK Treasury is that it has not been subject to Barnett consequentials and has been absolutely based on the needs of UK businesses and employees.

I fear that responsible politics are in short supply these days, not least at the top of the UK Government. I mentioned a commitment made by the Prime Minister back in 2016, and he made another one almost a year ago on the steps of Downing Street, when he promised he would govern as a one nation leader. If that is the Prime Minister’s intention, he makes it very difficult to recognise it in his actions and those of his Government. In relation to the pandemic, what started as a four-nations approach with movement in lockstep—I have heard this on the Scottish Affairs Committee—quickly degenerated into acrimonious briefings and a breakdown in communications.

We have heard frequently in this Chamber from those on the Government Benches about the precious Union, but for me, the terminology “Union” and “Unionist” rings hollow. If the way the Government have handled relations with Scotland and the other devolved nations during the pandemic is Unionist, I am certainly something different. I am a Liberal. I am a federalist. I am an internationalist; I believe not in erecting borders but in dismantling them, and I do not think the politics of nationalism—on either side of this House—the politics of grievance and, ultimately, the politics of division are any way in which to conduct truly progressive politics. I am proud to stand here representing a constituency that voted both to remain in the UK and to remain in the EU.

As the Government look towards the end of this year, I urge them to remember that two constituent parts of the UK voted decisively to remain in the EU. The failure to properly take that into account in negotiations weakens the bonds of the UK. The pandemic has shown that devolution can deliver financial support, while nations and regions make different choices on their social and public health responses. On Brexit, it is incumbent on the Government be a Government for all four parts of the country, not just England.

We have clearly missed the opportunity of an extension, so now the Government must do all they can to seek a deal that will give us the closest possible relationship to the EU and minimise the impact of our departure during the covid crisis.