PARLIAMENTARY DEBATE
Businesses: UK and EU - 26 January 2017 (Commons/Commons Chamber)

Our Department, working with officials across government, continues to undertake a wide range of analysis, covering the entirety of the UK economy and our trading relationships with the EU. We are looking at more than 50 sectors, as well as cross-cutting regulatory issues. We want to ensure that British businesses have the maximum freedom to trade with and operate within European markets, and to let European businesses do the same in Britain. We believe a strong partnership and a good deal on market access are in the interests of both the UK and the EU.

While we will bring in more immigration controls, the ability for key sectors such as aerospace, health and financial services to bring in or relocate skills and talent from different countries is important to their success and our industrial and export strategy. What reassurances can my hon. Friend give such businesses?

I know that my hon. Friend is a champion for the aerospace businesses along the M5 corridor and helps them in his role as a global trade envoy for our Prime Minister. As she said, we want the UK

“to be a secure, prosperous and tolerant country—a magnet for international talent and home to the pioneers and innovators who will shape the world ahead.”

We will continue to attract the brightest and the best to work and study in Britain. Indeed, openness to international talent must remain one of this country’s most distinctive assets, but that has to be managed properly so that our immigration system serves the national interest.

The hon. Gentleman raises an important question and I have had a number of valuable meetings with the Minister for Universities, Science, Research and Innovation and the Higher Education Funding Council for England to address exactly that issue. We recognise the concerns of the sector and that we need to continue to focus on having an immigration system that attracts the brightest and the best.

I urge my hon. Friend to address the issue of incoming individuals and the controls as soon as possible because one of the big issues—which my hon. Friend the Member for Gloucester (Richard Graham) has already touched on—is the concern about access to global talent. We need to reassure the City and others that the high added value, low volume numbers that come in are welcome: it is the low skilled who are using British benefits who are not very welcome.

My right hon. Friend is right about the importance of attracting global talent for key industries, such as our financial services sector and the FinTech industry, with which I met earlier this week.

Manufacturing companies in the aerospace and automotive sectors are worried about potential delays at the border and customs duties when we leave the EU. The Secretary of State, and the Prime Minister in her speech, suggested that associate membership of the customs union might be possible. Will the Minister confirm that, unless that associate membership covers most sectors of our economy, it will fall foul of World Trade Organisation rules?

The Prime Minister has talked about aiming for a frictionless system in which we can agree not to have tariffs or barriers, which is something we should all be aiming for in a new partnership between the UK and the EU.

In the light of the Prime Minister’s clear statement and the observations of my right hon. Friend the Member for Chingford and Woodford Green (Mr Duncan Smith), does the Minister believe that it might be sensible to set out, at an early date, the rules that will obtain for attracting high-quality and highly skilled talent into the UK?

In the light of the Prime Minister’s speech and her ambition to create stability and certainty through this process, the sooner we can come forward with those proposals, the better.

Far from being a clear exposition of policy, the Prime Minister’s appeal for a hybrid customs arrangement with Europe sadly raised far more questions than it answered. Will the forthcoming White Paper expand on her remarks and provide businesses across the country with the clarity that they need about how the alternative arrangements might affect them?

The Prime Minister’s statement has given welcome clarity to businesses and was welcomed by many business groups, but of course we expect the White Paper to set out more detail. We must also, however, protect our negotiating interests throughout the process, as the House has repeatedly instructed us to do.