Since I last updated the House, the Government have suffered a significant defeat in the meaningful vote, and I think it is right that we recognise that. The Prime Minister has responded to that by listening and engaging—[Laughter.] Well, the Leader of the Opposition has not engaged, but the Prime Minister has. She has engaged with the leadership of the party of the right hon. Member for Orkney and Shetland (Mr Carmichael) and other parties, and today she is engaging with trade union leaders. Yesterday she engaged with the First Ministers of Scotland and Wales. The Government have also responded to some immediate concerns of the House, such as by waiving the settlement fee and responding to the concerns of the hon. Member for Bassetlaw (John Mann) by looking at how we can have more targeted engagement with the House in the next phase of negotiations. We are continuing the process, and we look forward to further discussions.
I thank the Secretary of State for that answer. The “Whitehall Monitor 2019” report, which was published on Monday, revealed that the overall number of civil servants is up by 19,900 since the referendum, that the cost of civil servants leaving stands at £74 million a year, and that a third of the entire civil service is now apparently working on Brexit. Despite all that, the Government have passed only five of the 13 Bills necessary for Brexit, and less than a fifth of 133 major projects are likely or probably to be delivered and completed on time and on budget. Is the Secretary of State satisfied with the progress that his Department is making?
The right hon. Gentleman will recall from his days as deputy Chief Whip that a range of legislation needs to be passed for various scenarios. Significant progress has been made with the statutory instruments, with over 300 being passed, so he is cherry-picking with his comments about legislation. For example, the Healthcare (International Arrangements) Bill passed through this House this week. That key piece of legislation will enable us to make bilateral payments in the event of no deal. Considerable work has been happening over the past two years, and I pay tribute to civil servants across Whitehall for that. Significant progress has been made, but not all the issues relating to no deal are within the Government’s control, because some are reliant upon responses from business, third parties, EU member states and the European Commission.
T2. My right hon. Friend has heard the huge concerns from both agriculture and manufacturing about leaving without a deal, but 80% of our economy is services. What impact would leaving without a deal have on not only services within the UK, but our services exports, regarding which we have substantial surpluses with the EU and around the world?
Understandably, we have big debates in the House about goods, but 80% of our economy is services, so my hon. Friend is quite right to draw attention to that. The political declaration contains the opportunity to have a good and constructive relationship that reflects the dominance of the UK position on financial services, for example. That is why the package of the withdrawal agreement and the political declaration together is so important.
There are 64 days until 29 March, and the deal has gone down. On Monday, the Prime Minister made a statement about what she is going to do now; to put it politely, she was vague about her intentions. She said that she would “take the conclusions” of any discussions with MPs “back to the EU”, as if she is in a parallel universe in which we are somehow at the start of the process. I have a simple question: when the Prime Minister goes to the EU, will she be seeking legally binding changes to the withdrawal agreement, simple reassurances or, still less, clarifications?
The right hon. and learned Gentleman is always polite, so I will reciprocate and say that there are 64 days to go but we still do not know what Labour’s position is. It appears—
If we are talking about parallel universes and the 64 remaining days, it is worth clarifying that I genuinely do not know what the Labour position is. An amendment has been tabled that would change the operation of the House’s Standing Orders without any proper debate about the constitutional implications, which go way beyond Brexit, and extend the article 50 process until December, which would mean that elections to the European Parliament would have to happen in May. Three years after the people asked to leave, is it now Labour party policy to ask the people to vote for Members of the European Parliament? Everyone else is engaging with the process—even Len McCluskey is joining us for discussions in No. 10 today—yet the Leader of the Opposition is sitting alone in a parallel universe, unwilling to engage with anyone. We are listening to the concerns of Members on both sides of the House, including our confidence and supply partners, and we are working constructively to address the concerns of the business community. The question for the shadow Secretary of State—I hope he will clarify this for the House—is about Labour’s policy. Will he confirm that Labour is no longer committed to its manifesto?
I always listen to the Secretary of State with the keenest possible interest and attention, but I must say to him in all courtesy that he is filibustering his own right hon. and hon. Friends, who might not get in on this session. It must be clear that he is culpable, because the Chair is not.
The Secretary of State gives the definition of a non-answer. [Hon. Members: “What’s your policy, then?”] Our policy is a comprehensive customs union and single market deal—[Interruption.] It is in our manifesto, and I think that there would be a majority for it in this place, if it were put to a vote.
I look forward to tomorrow’s headlines, but I doubt they will say that Len McCluskey and the Prime Minister have agreed on the way forward. I asked the Secretary of State a question, and I would like an answer. Does the Prime Minister intend to put her deal to the House again and, if so, when?
Self-evidently, whatever deal we bring forward will need to secure the confidence of the House, and that will entail a vote. The right hon. and learned Gentleman talks about his policy and actually, unlike the Leader of the Opposition, he has been quite clear. His policy appears to be to remain in the European Union by triggering a second referendum, and he has indicated his personal view that, following that vote, we should remain. His policy is not consistent with the Labour manifesto, so I ask him again: is his policy the Labour policy, or is his policy different from that of the Leader of the Opposition?
T4. In the event of the UK leaving the EU without a deal, will my right hon. Friend consider using the provisions of article XXIV of the general agreement on tariffs and trade to maintain existing arrangements until a free trade agreement can be concluded, and thus avoid any imposition of tariffs or quotas?
As I would expect, my right hon. Friend asks a detailed, precise and interesting question. I have looked into this issue, and paragraph 5 of article XXIV allows only interim arrangements that are necessary for the formulation of a new free trade area where the parties have “a plan and schedule” for doing so. It does not allow the continuation of previous arrangements under an agreement that no longer applies.
T3. A small business owner from my constituency emailed me before Christmas. His business had won its first EU contract, requiring him to hire four extra people to deliver it. However, he has just been told by the EU that the business will lose the contract in the event of a no-deal Brexit. What would the Secretary of State say to my constituent? Will he please set out what the Government would say to my constituent, rather than what the Opposition would say?
I say to the hon. Lady—this applies to many Opposition Members—that I do not doubt her commitment to the business concerned or to trying to protect jobs. Indeed, that is one of the driving forces that led many Opposition Members to come into politics, but part of that is about listening to what business groups are saying. What they say is that, in the withdrawal agreement, things like citizens’ rights and our security relationships matter. Above all, businesses say that the flow and supply of goods matter, and that not having two sets of regulatory changes matters. That is why the business community says that it wants the certainty of the deal. When the Leader of the Opposition will not even enter into discussions, we are happy to engage with the hon. Lady and others, but this needs a two-way process.
T8. Extreme weather events have cost the global economy more than half a trillion pounds over the past few years, and the scientific consensus is that, unless we halve our greenhouse gas emissions, such events will only become more frequent. Currently, EU institutions monitor and enforce how we in the UK implement our policies. Can the Minister outline his plans for future regulatory oversight?
The Parliamentary Under-Secretary of State for Exiting the European Union (Mr Robin Walker)
The UK wants to continue to be at the forefront of environmental leadership and tackling climate change. My right hon. Friend the Secretary of State for Environment, Food and Rural Affairs has set out plans for a green Brexit. With the environment Bill, we will make sure that we have the institutions set up to police that and to monitor our progress on protecting our environment.