PARLIAMENTARY DEBATE
UK-EU Common Understanding Negotiations - 17 December 2025 (Commons/Commons Chamber)
Debate Detail
The Government were elected with a manifesto commitment to reset relations with our European partners; to tear down unnecessary barriers to trade and cut costs and red tape for British producers and retailers; to increase national security through strong borders and greater co-operation with our closest allies; and to support jobs here in the UK and opportunities abroad.
In May this year, the Government agreed a new strategic partnership with the EU, which the Prime Minister announced at the historic UK-EU summit—the first of its kind. It is a landmark deal that is good for bills, good for our borders and good for jobs. We took that decision, exercising our sovereignty, to strike a deal in the national interest. We had to fix a bad deal passed on to us by the previous Government—the first trade deal in history that made it harder to trade. Just as we have done with the US and India, this Labour Government are striking deals to bring down bills for British people and open new opportunities for British businesses.
Since that summit, I have led negotiations with the European Commission to implement the commitments we made. I am therefore pleased to inform the House that, earlier today, the UK and the European Commission concluded negotiations for the UK’s association to Erasmus+ from 2027. This will open up world-class opportunities for students, teachers, youth workers, sports sector professionals and communities of all ages in our education, training, sport and youth sectors—both for the professionals who work in those sectors and, crucially, for our young people.
For students, this means more chances to study, train, work or volunteer abroad, gaining language skills and experience that will make them attractive to employers; for our teachers, youth workers and those who work in the sports sector, it means greater opportunities for professional development; and for our schools, colleges, universities and providers, it means access to networks and partnerships that will drive quality, encourage research links, and enhance the reputation of the UK’s world-leading education system. This morning, I met students at New City College in Hackney to see the range of benefits there are going to be, including playing basketball.
As part of Erasmus+, participants can travel to any European Union member state, as well as to several countries outside the European Union. It will go further than schemes that have come before, offering a broader scope of activity and a specific focus on unlocking opportunities for all. It is an investment in opportunity for young people from all backgrounds, for our workforce, and for our future. It will open doors for tens of thousands more young people across the UK, renewing our ties with Europe and beyond. This Labour Government have always been clear that we want young people to have access to the best opportunities in life, no matter what their background or where in this country they live. That is what we have consistently delivered, and it is what we are delivering through today’s announcement.
We are pleased that the EU has agreed financial terms that represent a fair balance between the UK’s contribution and the benefits the programme offers. The 30% discount in 2027, compared with the default terms in the trade and co-operation agreement, has paved the way for UK participation in the programme.
We also agreed that there will be a review of the UK’s participation in the programme 10 months after our association, so that we can look at the actual data concerning the demand for funding in the UK. Going forward, any continued participation in Erasmus+ under the next multi-annual financial framework will be informed by that data and our experience of association in 2027. We have always said that we will not sign deals unless they are in the national interest, and in this case I am happy to say that the agreement passed that test.
The Government will now work to maximise take-up across all sectors so that the benefits of Erasmus+ association can be fully realised. We will work closely with institutions and our young people to support this, particularly among disadvantaged groups. A UK national agency will be appointed to administer the programme in due course.
In addition, I am pleased to inform the House that the UK and the European Commission have concluded exploratory talks on the UK’s participation in the EU’s internal electricity market. The details of this will be set out in an exchange of letters between me and Commissioner Maroš Šefčovič, to be published next week. Closer co-operation on electricity will bring real benefits to businesses and consumers across Europe. It will drive down energy costs and protect consumers against volatile fossil fuel markets. It will also drive up investment in the North sea and strengthen energy security. The UK and the EU will now proceed swiftly with negotiations on a UK-EU electricity agreement.
But that is not all. I welcome the clarification from the European Commission today that, in practice, there should be no carbon border adjustment mechanism costs levied on UK electricity exports—a welcome development that reflects our extensive use of renewables. Negotiations to link our carbon markets are also under way, which will cut costs, make it cheaper for UK companies to move to greener energy and, once agreed, save £7 billion-worth of UK goods exports from EU CBAM charges.
Negotiations on the food and drink agreement are also under way, which will enable food and agriculture businesses to trade more cheaply and easily by slashing the red tape and costly paperwork introduced by the last Government, which result in businesses facing £200 for export health certificates on every single shipment, or small businesses choosing not to trade with the EU altogether. Our new agreement will put this right, boosting our exports, cutting costs for importers, and bringing down prices on supermarket shelves.
The UK and the EU are committed to implementing the commitments of the May 2025 summit in a timely manner. We are working swiftly to conclude negotiations on the food and drink deal and on linking our carbon markets by the time of the next UK-EU summit in 2026. Across all these areas, the UK is clear that there will be no return to the single market, the customs union or freedom of movement. We will agree deals that are in our national interest. The Government are exercising our sovereignty to deliver for the British people.
We are committed to building this new strategic partnership with the European Union. Indeed, last week I spoke with my counterpart in the Commission, Maroš Šefčovič, and we underlined our shared commitment to implementing the common understanding that the Prime Minister and the Commission President agreed at the UK- EU summit in May. Whether it is through boosting opportunities for young people and educators across the country, cutting energy bills or agreeing a food and drink deal that slashes red tape and cuts costs, I will always negotiate in the interests of this country and our people.
I will continue to lead negotiations with the Commission. I look forward to the next annual UK-EU summit, where the Government will continue to build that new strategic partnership. That is what a grown-up, pragmatic relationship looks like. We work together under shared aims for mutually beneficial solutions to our shared problems. That is the approach the Government are taking and that is the approach that is delivering results. I commend this statement to the House.
That is why the Conservative Government created the Turing scheme instead—a global programme for young people in the UK that did not require us, one-sidedly, to hand a blank cheque to Brussels. The Turing scheme delivered 43,000 placements around the world last year, 23,000 of which were to learners from disadvantaged backgrounds, at a cost of just over £100 million. Can the Minister confirm that his statement in no way undermines the future of the Turing scheme? Is that scheme guaranteed, or are those opportunities being sacrificed for a smaller number of opportunities available under Erasmus+?
The Minister has confirmed that the UK will pay £570 million to rejoin Erasmus+. We understand that will be paid from existing budgets, but can he tell us where the money is coming from? Is that £570 million being added to the £6 billion special educational needs and disabilities black hole that the Office for Budget Responsibility identified in the education budget? Does the Minister expect more students to take part in the new scheme than the 10,000 previous participants in Erasmus+, or are we paying £570 million for essentially 10,000 placements a year?
The Minister spoke about a fair contribution being a 30% discount. Of course, it is only a matter of weeks since the Government were briefing that a fair contribution would be a 50% discount. They clearly failed in those negotiations. Can the Minister assure us that while he says that he has a discount for the first year, a discount will be available in subsequent years? If those assurances have not yet been received and the EU does not offer a similar deal in future years, is he prepared to walk away?
The Opposition have set out clear tests to ensure that the Government do not roll back on Brexit, including no backsliding on free movement. Can the Minister outline what protections will be put in place to ensure that rejoining Erasmus does not simply mean a return to free movement by the back door for young people? That is particularly important given his complete failure, when asked multiple times, to set out what size of cap he thinks would be appropriate for youth mobility.
Rejoining Erasmus is the Government’s latest attempt to undo Brexit by stealth. That was clear from the outset of these negotiations, when the Government agreed to surrender UK fishing rights to the EU for 12 years, under the pretence that that would
“pave the way for the UK defence industry to participate in the EU’s proposed new…defence fund”.
Yet six months later that deal has collapsed after the EU’s extortionate demands for billions of pounds to join the fund, with no guarantee of any return on investment in the form of procurement. Can the Minister explain to our hard-working fishing industry why they will not be getting their fish back, even though that deal has fallen through?
The British people made a clear decision to take back control in 2016. Despite the Government’s protestations, their approach shows an increasing disregard for that democratic decision.
On the hon. Gentleman’s point about the Turing scheme, it is important that I say from the Dispatch Box that any person on the Turing scheme in this academic year will continue to be funded. I have to tell him, however, that his numbers are absolutely all over the place. First, the Erasmus+ scheme has changed significantly since the version that his Government walked away from. Furthermore, do we seriously think that that lot could have secured a 30% discount? Absolutely not.
The one figure that the hon. Gentleman did get right was 43,200, which is the number of people involved in the last year of the Turing scheme. Erasmus is a far bigger scheme. We will expect tens of thousands of young people—100,000-plus—and others to have opportunities from Erasmus. But let me tell the hon. Gentleman this as well: Erasmus is a great deal broader than the Turing scheme in terms of opportunities. The Turing scheme is about colleges, schools and universities. Erasmus+ presents wider opportunities, including youth work, sports and the ability of staff to have professional exchanges. Let me just say, before Conservative Members start talking about the fact that Turing is all around the world, that the grant-making bodies for Erasmus+ in the UK can still allocate 20% of the funding if they want to, if people want to go to other parts of the world as well. What this is doing is vastly increasing the opportunities not just for young people, but for adult learners. If the Conservative position is now to oppose a massive expansion in opportunities for young people, I will welcome that debate at the next election.
“fantastic news for the UK”.
The Russell Group of universities is “delighted” about this reassociation. But who is opposed to it? The Conservative party.
Beyond this fixed-term experience of Erasmus+, will the Government commit to a proper youth mobility scheme for the benefit of the next generation, and can he update the House on what progress has been made in such negotiations? How confident is he that our food, drink and sanitary and phytosanitary scheme will be agreed by 2026, and how long thereafter will it take to fully implement the scheme? Agrifood and horticultural businesses cannot afford any further delays.
Finally, on the subject of unnecessary barriers to trade—which is where the Minister began his statement—will his Department commit itself at the very least to conducting a transparent assessment of the potential economic growth benefits of a UK-EU customs deal of the kind that the House voted for last week?
Let me, for a moment, speak more broadly about Erasmus+—and, indeed, this applies to the youth experience scheme as well. I want both schemes to be open to people from all backgrounds across the United Kingdom. People often refer to Erasmus+ as a university exchange programme, and of course that is a vital part of it, but it is not just a university exchange programme; it is accessible across the country. I have been looking at, for example, the Welsh Government’s Taith programme, which has done an extremely good job with regard to accessibility. Where there is there are lessons to be learned from that, we will absolutely learn them.
Where I disagree with the hon. Gentleman is, of course, on the issue of the customs union, because the Government has only in recent days signed an additional free trade agreement with South Korea, and we also have the economic deal with the United States and the free trade deal with India. All those would have to be torn up if we went down the path that he has suggested.
Having announced this welcome development, can the Minister confirm that he will now be turning his attention to some of the other detriments that continue to be experienced, particularly by small and medium-sized businesses in my constituency, as a consequence of the inability to trade in Europe because of barriers resulting from Brexit? Can he confirm that work is ongoing in that regard, and that all options that are in the national interest will remain on the table?
Does the Minister agree that those of us on the Opposition Benches who last week voted against the idiotic proposal from the Liberal Democrats for a customs union have been proved right and them wrong, because the evolution of the relationship within the guardrails of the existing arrangement are the way to go, preserving those new free trade deals and seeing them extended while encouraging businesses to trade with Europe?
The Minister will know that many more people in our constituencies are now looking at the work he is doing to repair the UK-EU relationship, and seeking some Christmas cheer. For all the businesses still facing piles of paperwork and mountains of red tape, can he play Santa a little bit more and tell us what 2026 might bring in resetting the relationship and getting Britain back on track with its neighbours?
This statement is entitled “UK-EU Common Understanding Negotiations”. Is it his understanding, as the Minister for EU relations, that the people with whom he is having dealings are still bent on the creation of a federal United States of Europe? [Interruption.] Do I detect some chuntering on the Government Benches to suggest that some people in this House might want to be a part of that?
On working with our European friends and neighbours—whether it is the work that the Prime Minister is doing in leading the coalition of the willing, or the painstaking work that we have been doing in recent days on Russian assets—the close relationship and strategic partnership between the UK and the EU is crucial for our nation’s security.
Secondly, on the right hon. Member’s point about the review, it will absolutely be data-led. We have had this debate before about participation versus contribution, and I have always said there has to be a fair balance—that is why I have negotiated the discount in the way I have—but the review will allow us to move forward on the basis of solid data about the numbers of participants. I am always in favour of data-led decision making.
University of Nottingham staff in my constituency face considerable pressure due to ongoing restructuring. What would the Minister say to those staff, who are under intense pressure, about what this offers at an organisational level for our universities?
Some 73% of university-age young people voted against Brexit—they voted to remain in the EU—so Erasmus always felt like a spiteful act, and I am really pleased that we are able to correct that injustice today. I worked in the university sector for almost 30 years before being elected to this place—hard to believe, I know—so I understand the benefits of Erasmus, but I do agree with the Minister that it was not a completely democratic process, and that it was middle-class students who tended to take part. How will he ensure that that changes? Will there be monitoring, perhaps, or will he consider targets?
On my hon. Friend’s second point, obviously the Erasmus+ programme has changed so that a wider range of activities is available, from youth work and adult education to sports, but there is also additional support in Erasmus for those from disadvantaged backgrounds. My hon. Friend is right about monitoring it, but my priority for the next few months will be driving that participation in the first place.
“It is a win for those of us who think that international learning should be open to all, not just the children of the rich who can afford international fees.”
But, she said:
“It is too late for me. I was 11 when Brexit happened and I am now 21, and in my last year of university.”
Will the Government undo the wrongs done to such kids by the last Conservative Government, and go further and faster by committing to a youth mobility scheme?
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