Commons Sense

House of Commons · Ministers' Questions

EU Single Market Access: Manufacturing and the Economy

Tuesday 11 February 2020 · 9 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 1 Partly answered 6 Not answered 0

Key points

  • Government has made assessment regarding potential effects on manufacturing sector and economy if UK does not access EU single market.
  • Businesses warn they are unprepared for Brexit, with Government working closely with businesses to address concerns.
  • Government aims to forge a new relationship with EU based on free trade, working carefully with EU on equivalence for financial services.

Topics (select to filter)

Questions & Answers

Q1 Matt Western Lab Warwick and Leamington
Economy Brexit Business & Trade
Context

The CBI has warned that businesses are not ready for Brexit, costing billions in planning. Small businesses are concerned about the lack of infrastructure and advice.

Question

What assessment have the Government made regarding the potential effects on (a) manufacturing sector and (b) economy if UK does not access EU single market? Businesses warn they are unprepared for Brexit, costing billions in planning; small businesses fear inadequate infrastructure and advice.

Answer from Sajid Javid

We want a relationship with EU based on free trade. The economy has grown every year since 2010, employment is at record high, and wage growth outpaced inflation for 17 consecutive months. We are working closely with businesses as we forge new free trade agreement.

Partly answered

Not addressed: Did not address the specific assessment of economic effects or readiness of businesses

How: Ends Uncertainty By Leaving Eu

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Q2 Matt Western Lab Warwick and Leamington
Brexit
Context

The CBI warns that business is not ready for Brexit, costing billions in planning. The Federation of Small Businesses and individual small businesses are concerned about infrastructure and advice.

Question

Businesses warn they are unprepared for Brexit; what is the Government doing to address this?

Answer from Sajid Javid

We work closely with individual businesses and representative groups. Ending uncertainty of Brexit by actually leaving EU has been welcomed.

Partly answered

Not addressed: Did not address concerns about infrastructure and advice

How: Ended Uncertainty

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Q3 Jonathan Reynolds Labour (Co-op) Stalybridge and Hyde
Brexit Business & Trade
Context

Government's ambitions have faded from wide-ranging free trade deal to basic agreement barely covering goods. Chancellor announced enhanced equivalence for financial services, which the EU has already ruled out.

Question

Three years ago, asked about plan for market access of financial services to EU; now only seeking enhanced equivalence which EU ruled out. When will credible plan be presented?

Answer from Sajid Javid

EU has not ruled out equivalence; agreed in political declaration to work on decision by end of July this year. We are working carefully and closely with the EU.

Partly answered

Not addressed: Did not specify timeline or plan for credible market access agreement

How: Get Facts Right

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Q4 Alison Thewliss SNP
Economy Brexit
Context

GDP flat in quarter four, service sector stagnating, manufacturing hard hit. Smart border not ready until 2025; frictionless trade kicked to the touchline.

Question

When will Chancellor accept reality that Tory Brexit plans are damaging economy, especially for just-in-time manufacturing?

Answer from Sajid Javid

Since 2010, growth would have been hit by uncertainty created before general election; since election, confidence back because country said no to Marxism and got on with Brexit.

Not addressed: Did not address economic impact of border chaos or manufacturing jobs

How: Change Topic

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Q5 Alison Thewliss SNP
Economy Brexit Business & Trade
Context

GDP flat in quarter four, service sector stagnating, manufacturing hard hit. Smart border not ready until 2025; frictionless trade kicked to the touchline.

Question

Chancellor revealed smart border will be delayed until 2025; what impact does this have on UK economy and jobs in manufacturing?

Answer from Sajid Javid

Since 2010, auto manufacturing grew by 58%, aerospace by 22%; recent survey by CBI saw biggest increase in confidence.

Not addressed: Did not address economic consequences of border chaos or job impacts

How: Change Topic

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Q6 Greg Hands Con
Economy Business & Trade
Context

Financial services generate 7% GDP, provide 1.1 million jobs, £29 billion tax revenue; needs to be looked after in trade agreement.

Question

Does Chancellor agree that ensuring the financial services sector is protected in any trade agreement with EU will help finance infrastructure projects?

Answer from Sajid Javid

My right hon Friend is correct; financial services employ millions across UK, generate revenue for public services. It's key to forge new relationship with our European friends.

Partly answered

Not addressed: Did not specify how financial services will be protected in trade agreement

How: Right Industry

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Q7 Jacob Young
Economy Business & Trade
Context

Creation of new freeports seen as key to boosting manufacturing; best place for a freeport is Redcar.

Question

Does Chancellor agree that creating 10 new freeports, especially in Redcar, will help boost manufacturing and the economy?

Answer from Sajid Javid

Absolutely agree with importance of freeports; they are key part of boosting opportunity outside EU.

Partly answered

Not addressed: Did not provide specifics on creation or benefits of freeports

How: Freeports

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Q8 Vicky Ford Con
Brexit Business & Trade
Context

Approximately 3,000 people work in insurance sector; similar rules to Bermuda for equivalence.

Question

With 3,000 working in the insurance sector in Chelmsford, is it reasonable that EU should offer same equivalence as given to Bermuda?

Answer from Sajid Javid

On day one, we will have exactly the same rules; can diverge in future but on day one EU should look carefully at equivalence decision.

Answered
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Q9 Tim Farron Lib Dem Westmorland and Lonsdale
Immigration Housing
Context

The South Lakes area has a shortage of council homes with 3,000 families on the waiting list. The Government's Migration Advisory Committee predicts an 8% reduction in the construction workforce due to visa and migrant pay plans.

Question

In the South Lakes we have 3,000 local families waiting for a council home, yet the Government's own Migration Advisory Committee says that the Government's plan for visas and migrant pay will see an 8% reduction in the construction workforce. So will the Chancellor explain who is going to build the homes that families in the South Lakes so desperately need?

Answer from Sajid Javid

The hon. Gentleman will know that, under this Government, since 2010, we have seen a dramatic increase in the number of homes being built. I think that last year there was the highest number of homes built in all but one of the past 30 years. When it comes to building more of those homes, of course we do need enough workers in the industry. That is exactly what our points-based system is about—making sure that it focuses on those areas where we need most support.

Partly answered

Not addressed: The specific ask about who will build the homes with an 8% reduction in construction workforce was not directly addressed.

How: Changed Subject To Overall Increase In Home Building

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