Commons Sense

House of Commons · Ministers' Questions

Economy: Impact of UK Withdrawal from EU

Tuesday 7 February 2023 · 5 questions

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

Read the full transcript on Parliament.uk

At a glance

Answered 0 Partly answered 3 Not answered 0

Key points

  • Government assessment indicates the UK's departure from the EU has led to economic opportunities, including 71 trade deals with non-EU countries worth 240 billion to the UK economy in 2021.
  • Bloomberg estimates Brexit costs the UK 100 billion annually in lost output, with the OBR predicting a 4% smaller economy due to Brexit and the Centre for Economic Performance warning of added 6 billion food costs post-Brexit.
  • The Minister stated that if Labour is against Brexit, they should have the courage to advocate for rejoining the EU.

Topics (select to filter)

Questions & Answers

Q1 Barry Sheerman Lab
Brexit
Context

The MP asks about recent assessments made on the UK's economy post-Brexit departure from the EU.

Question

What recent assessment has been made by the government regarding the economic impact of the UK's departure from the EU?

Answer from Jeremy Hunt

Busy day for me. With permission, I would like to answer this with question 16. Leaving the EU has enabled the UK to realise an array of economic opportunities—not just the Solvency II reforms, but 71 trade deals with non-EU countries worth £240 billion to the UK economy in 2021.

Partly answered

Not addressed: The answer did not provide a recent assessment or statistics on economic impact of Brexit.

How: Changed Subject, Avoided Specifics

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Q2 Steven Bonnar
Economy Brexit
Context

The MP references Bloomberg analysis and Office for Budget Responsibility forecasts to argue that Brexit has significant negative economic impacts.

Question

Analysis by Bloomberg estimates Brexit is costing the UK £100 billion a year in lost output, while OBR predicts a 4% smaller economy due to Brexit. The Centre for Economic Performance warns of added £6 billion food costs post-Brexit. How much more damage will need to be done before this Government acknowledges the reality that Brexit is an economic drag?

Answer from Jeremy Hunt

Thank you for correcting me, Mr Speaker.

Not addressed: Did not address any economic cost or damage caused by Brexit.

How: Changed Subject, Avoided Specifics

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Q3 Barry Sheerman Lab
Brexit
Context

The MP apologises for past unkindness and asks if all parties can acknowledge that the UK is poorer due to Brexit.

Question

I apologise for past harsh comments but Labour believes in admitting we are poorer because of Brexit. Can both sides admit this and work on it?

Answer from Jeremy Hunt

All I would say is that, if Labour really are against Brexit, they should have the courage of their convictions and say they want to re-join the EU. That is the problem: because they do not believe they can make a success of it, they will never be able to run the British economy under it.

Not addressed: Did not admit negative economic impacts from Brexit.

How: Changed Subject, Redirected Question

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Q4 Anthony Browne
Economy Science & Technology
Context

The MP welcomes the government's commitment to innovation but expresses concern over R&D tax credit reform.

Question

I welcome the fact that this Government are committed to making the UK an innovation nation with a new Department. My constituency has 400 life science companies, and there are concerns about R&D tax credit reforms. Can my right hon. Friend reassure them that the Government still support research and development while tackling fraud?

Answer from Jeremy Hunt

My hon. Friend is a formidable advocate for that sector, and I want to give him that reassurance. We protected our R&D budget at its highest ever level in the autumn statement. We are looking at how we can support R&D small companies without fraud happening.

Partly answered

Not addressed: Did not provide concrete assurances or specific measures to tackle concerns about reforms.

How: Avoided Specifics

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Q5 David Morris Con
Taxation Business & Trade
Context

The MP thanks the Chancellor for awarding £50 million to Morecambe for the Eden Project and asks about VAT tapering proposals.

Question

I thank the Chancellor for awarding Morecambe £50 million for the Eden project. Can my right hon. Friend meet me to discuss my formula for VAT tapering to help small businesses?

Answer from Jeremy Hunt

First, I congratulate my hon. Friend on his campaigning for Eden Project North, which is a model for MPs standing up for their constituencies; he deserves huge congratulations. I will happily look at his proposals on VAT tapering. We already have the highest VAT threshold in the G7.

Partly answered

Not addressed: Did not commit to specific meeting or detailed discussion of proposals.

How: Changed Subject, Avoided Specifics

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