UK-EU Economic Co-operation

13. If she will make an assessment of the potential merits of increasing levels of economic co-operation with the EU.

At a time of great global uncertainty, it is more important than ever that we deepen ties with our closest allies and biggest trading partners, whose values we share, and whose interests are bound to ours. It is 10 years today since the Brexit referendum, but the economic impact from the deal negotiated by the previous Government is stark. Indeed, recent studies indicate that its impact could be as great as an 8% reduction in GDP. I have worked closely with my counterparts across the EU as part of this Government’s commitment to resetting the UK-EU relationship, most recently at meetings of the G7 in Paris, and meetings with the European Bank for Reconstruction and Development in Riga. They have been clear that they would welcome closer ties, which will be in all our interests. At the upcoming UK-EU summit, we hope to be able to conclude deals on food and agrifood, on linking to the EU emissions trading schemes, and on an ambitious youth mobility scheme.

Today does indeed mark 10 years since Britain voted to leave the European Union. One of the consequences of Brexit has been to bury my constituents in red tape. My farmers cannot export without doing reams of paperwork, and small businesses are seemingly locked out of European markets. The EU remains the world’s largest trading bloc, and it sits on our doorstep, so will the Chancellor set out a path to an ambitious UK-EU reset—something that my party has called for—including a new customs union that would slash costs for British businesses, open markets for our farmers, and bring down prices for the British consumer? Or will we have to wait for her successor to show that ambition?

I have been working hard in this Labour Government to reset the relationship so damaged by the choices of the Conservatives. That is why we have committed to this second UK-EU summit, after the agreement between President Ursula von der Leyen and our Prime Minister last year to finalise the deal on food to help our farmers, on youth mobility to help our young people, and on emissions trading to help keep the cost of energy down.

Given what my right hon. Friend has rightly said about the disastrous deal negotiated by the Conservatives once we left the EU, when the next UK-EU summit does eventually happen, will it not be time— after we have successfully concluded discussions on the priorities of the UK-EU reset—to discuss the opportunity, costs and benefits for more key parts of our economy of rejoining the single market?

I understand why my hon. Friend makes those arguments; we are clearly poorer outside the European Union than we otherwise would have been. We made a manifesto commitment that we would not rejoin the single market or customs union, or return to the free movement of labour. Those red lines stand, but within them there is an awful lot that we can do to improve relations. We are doing just that.