Commons Sense

House of Commons · Ministers' Questions

Brexit: Economic Impact

Tuesday 5 September 2023 · 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

  • Brexit was a choice made by the British people, and it remains a big opportunity for the economy.
  • The UK has grown faster than France or Germany since leaving the single market.
  • Scotland now has extra support for pubs, lower beer duty relative to supermarkets, and benefits from Brexit freedoms in Edinburgh reforms.

Topics (select to filter)

Questions & Answers

Q1 Deidre Brock SNP
Economy Scotland Brexit
Context

The MP is concerned about the economic consequences of Brexit, particularly regarding trade barriers and staffing issues.

Question

What recent assessment has been made of the potential impact of withdrawal from the EU on the economy. The loss of freedom of movement has hugely damaged businesses' ability to recruit staff in Scotland; UK pubs alone lost £22 million due to staff shortages over a bank holiday.

Answer from Jeremy Hunt

Brexit was a choice made by the British people, and it remains a big opportunity for the economy. The UK has grown faster than France or Germany since leaving the single market. This country has more people out of work and fewer in work compared to England due to SNP's economic policies.

Partly answered

Not addressed: Specific assessment of Brexit's impact on the economy

How: Relitigating That Debate, Opportunity For The Economy

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Q2 Philippa Whitford SNP
Economy Brexit
Context

The Bank of England warned that Brexit would damage the UK economy, weakening the pound and causing inflation. Import checks on animal and food products have been delayed multiple times.

Question

Does the Chancellor accept that delays in introducing changes to import checks are contributing to the cost of living crisis? The Government has delayed import checks on animal and food products for the fifth time because the costs would add to inflation.

Answer from Jeremy Hunt

No, but of course we are sensitive about the timing of introducing those changes. An extra £14.6 billion is being directed to public services every year because of Brexit.

Partly answered

Not addressed: Specifics on cost of living crisis contributions from import check delays

How: Sad To See Her Step Down

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Q3 Alison Thewliss SNP
Economy Scotland Brexit
Context

Brexit has impacted small businesses such as Guild Antiques & Restoration, which saw orders from the EU fall off a cliff edge.

Question

What can the Chancellor do to fill the economic gaps caused by hard Brexit? Scotland did not choose Brexit and we are all worse off as a result. Many businesses have had to reduce their offer or close altogether due to staff shortages.

Answer from Jeremy Hunt

There is irony in SNP opposing Brexit while advocating separation. Scotland now has extra support for pubs, lower beer duty relative to supermarkets, and benefits from Brexit freedoms in Edinburgh reforms.

Not addressed: Actions to address economic impacts of Brexit

How: Irony In Snp'S Stance, Edinburgh Reforms

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Q4 Deidre Brock SNP
Employment Brexit Business & Trade
Context

Loss of freedom of movement has damaged businesses' ability to recruit staff, leading to reduced opening hours and closures.

Question

Does the Chancellor accept that small businesses cannot keep picking up the tab for his Government's disastrous Brexit? What is he doing to solve these staffing problems?

Answer from Jeremy Hunt

May I gently say that this country has actually grown faster than France or Germany since we left the single market. SNP's economic policies have led to more people out of work in Scotland compared to England.

Not addressed: Staff recruitment solutions

How: Growth Relative To France And Germany

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Q5 Theresa Villiers Con
Economy Brexit
Context

Leaving the EU offers opportunities for modernising regulations.

Question

Will my right hon. Friend drive regulatory reform across Departments to increase prosperity and raise living standards?

Answer from Jeremy Hunt

We look at her booklet on regulatory reform ahead of fiscal events, including big reforms to medicines regulation in the Budget.

Partly answered

Not addressed: Driving regulatory reform across Departments

How: Booklet On Regulatory Reform

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Q6 Vicky Ford Con
Brexit Science & Technology Business & Trade
Context

The UK has a history of leading in financial services and markets.

Question

Will my right hon. Friend look at the report from UK Finance on tokenisation of markets to be world leaders in that innovative area?

Answer from Jeremy Hunt

Thanks to the Economic Secretary, we have repealed 100 EU rules and regulations in financial services. We will look closely at opportunities related to tokenisation.

Answered
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Q7 Tulip Siddiq Lab Hampstead and Highgate
Brexit Business & Trade
Context

Government admitted that introducing food import checks would lead to increased inflation. Labour believes a bespoke veterinary agreement could reduce red tape.

Question

Are the Government planning to negotiate a veterinary agreement, and if not, why not?

Answer from Jeremy Hunt

The last thing business wants is upheaval from a huge renegotiation of trading arrangements with the EU, which is already the largest tariff-free free trade deal by volume in the world.

Partly answered

Not addressed: Specific plans for veterinary agreements

How: Upheaval From Renegotiation

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Q8 Drew Hendry SNP
Economy Benefits & Welfare
Context

The question arises from the high food price inflation affecting household budgets, with experts like Adam Posen attributing up to 80% of additional inflation woes to Brexit. The UK's situation contrasts with countries such as France that have taken action.

Question

I am concerned about the Chancellor claiming success despite higher and more stubborn inflation in the UK compared to the EU. With food price inflation hurting families, why has this Government done nothing? Why haven't they learned from France which works with suppliers to cap prices for those in need?

Answer from Jeremy Hunt (The Chancellor of the Exchequer)

Inflation is influenced by imported foods and gas, like Germany and Italy, and low unemployment, similar to the US. The UK has recovered better from the pandemic than France, Italy or Germany despite these pressures.

Partly answered

Not addressed: Did not address why the government hasn't taken specific action on food price inflation as in France.

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Q9 Drew Hendry SNP
Scotland Energy Benefits & Welfare
Context

High energy bills are a key driver of inflation, affecting family budgets. The Spanish government has introduced VAT cuts and social tariffs to help their citizens. Scotland faces higher energy costs compared to other UK regions.

Question

The Chancellor did not address how high energy costs hurt families. Similar to Spain's bold steps in cutting VAT and introducing a social tariff, what plans does the Government have for winter support? Specifically, will there be a £400 energy price grant introduced this winter?

Answer from Jeremy Hunt (The Chancellor of the Exchequer)

For constituents in Scotland, our support includes around £3,000 per family, paying half their bills on average, and substantial benefits system assistance. Nearly £100 billion has been provided to show we are stronger together.

Partly answered

Not addressed: Did not confirm if there will be a £400 energy price grant as requested.

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