The Government agreed a new strategic partnership with the EU in May last year, delivering for UK jobs, easing the burden on bill payers and strengthening our borders. Whereas we are making significant progress, it seems the Conservative party and Reform would rip it up. Given that Reform has just recruited that well-known remainer, the right hon. Member for Newark (Robert Jenrick), who knows what its latest position is.
The inflation figures out yesterday show that despite the Government’s good progress on energy prices, food inflation remains stubbornly high. Even the price of a Tesco meal deal is stuck at £4.25. The Government need to make food and life more affordable, so will the Minister update us on his negotiations over agrifood trade with the EU?
The sanitary and phytosanitary agreement removes export health certificates and routine border checks, slashing costs and red tape for agrifood trade. For example, businesses will save up to £200 per shipment, making trade cheaper and easier. The Conservative party wants to put those costs back.
My right hon. Friend will know that the UK and EU financial systems are closely linked by cross-border capital flows that support jobs on both sides of the channel. Regulatory co-operation is beneficial for financial stability, but our ability to diverge from some of those regulations can also support our competitiveness. Will the Minister set out a bit more about how he is working with the Treasury to ensure that the UK’s engagement with the EU on financial issues balances our strategic sovereignty and autonomy with our economic prosperity?
That is precisely why the Government take a pragmatic approach. We choose to align in areas where it makes sense to do so. Where it makes sense to diverge, we will also continue to do so. We are always driven by our national interest.
Given the strength of power shown by the EU to the US, not only is the relationship with Europe more strategically important than ever, but it matters because of the £90 billion black hole in our economy and to people such as Hazel from Tring, whose medical devices family business has been cut by costs and bureaucracy since Brexit. When will the Government finally start taking seriously negotiations on a new EU-UK customs deal?
On the hon. Lady’s first point, we agreed the new strategic security and defence partnership with the European Union in May last year, which is absolutely crucial. On the point about the food and drink agreement, we agreed just before Christmas that that will be completed by the time of the next summit.
A close and strong relationship with our European partners is vital to our interests. Mid Sussex is home to high-tech life sciences companies such as CSL Behring and Roche Diagnostics. The regulatory and trade barriers put up after Brexit have made business harder for them. With a mercurial Administration in the White House, as evidenced this week, surely it is time for the Minister to get behind Liberal Democrat calls for a bespoke customs union with the EU.
Our democratic mandate from the general election is clear: we will not rejoin the single market or the customs union, or go back to freedom of movement. However, what we do, and what I do every single week, is negotiate that closer UK-EU relationship, which is in our national interest. The hon. Lady and her colleagues should support that.
This week the Prime Minister hit the phones again to protect our interests; meanwhile, the Leader of the Opposition risked undermining those efforts, acting almost like a Trump Trojan horse in this Chamber. Diplomacy is paying off: tariff threats are receding and Greenland solutions may be emerging. Does the Minister agree that we must always put country before party and work with the US and our European allies, and that our efforts should command cross-party support?
My hon. Friend is absolutely right. The Leader of the Opposition should have risen to the occasion yesterday in a profound moment for the nation. She chose not to do so.
I thank the Minister for travelling to Belfast later today for the East-West Council. As he knows, the council was created to strengthen ties within the United Kingdom, and one of the impediments to those economic ties is the Windsor framework. Knowing that punitive measures are still to be implemented, including customs required on parcels moving from one part of our country to another for ordinary consumers, does the Minister recognise that in building a better relationship with the European Union more pragmatism is required when it comes to Northern Ireland?
I look forward to visiting Belfast later today. The right hon. Gentleman is absolutely right that the East-West Council is an important part of our “Safeguarding the Union” arrangements. I certainly take a pragmatic and proportionate approach to the Windsor framework, which is one of the reasons I am so keen to get the food and drink agreement with the EU implemented as soon as possible, which, as the right hon. Gentleman knows, will mean we can reduce the levels of checks in the Irish sea.
Since the Paymaster General was last in the Commons, the Health Secretary has said that Britain should rejoin the customs union, the Deputy Prime Minister has suggested rejoining the customs union, 13 Labour MPs have gone against the Whip and voted with the Liberal Democrats in favour of a customs union, 80% of Labour voters at the last election have said they want to rejoin the customs union, and the Business and Trade Secretary has said that it would be “crazy” not to join the customs union. It would seem that the only people in Labour opposed to the customs union are the Prime Minister and the Paymaster General. The right hon. Gentleman will be pleased to hear that in this one regard, I do not think he is crazy at all—I think he is doing the right thing. Will he tell the House why he thinks all the other members of the Labour party are so wrong?