PARLIAMENTARY DEBATE
Trade with the EU - 29 January 2026 (Commons/Commons Chamber)

Some 46% of the UK’s trade is with the EU, but we want to do far better, achieving trade with the EU that is as frictionless as possible. We are in the process of fine tuning the deal that we reached last year on food and drink, and negotiating on joining the single electricity market. We want to improve business mobility and secure the mutual recognition of professional qualifications. We have just appointed three new trade envoys—one for France, one for Germany and one for Italy—as part of our exports drive.

On touring artists, we are absolutely determined to secure that—not least because I have personally promised Elton John that we will, as has the Prime Minister. [Interruption.] I see the right hon. Member for The Wrekin (Mark Pritchard) chuntering. I think he is bidding to be a trade envoy for some country. If he would like to come and talk to me later, we can have a discussion about it.

The truth of the matter is that we had a terrible deal with the European Union. We need to improve it, and we are working at pace to try and deliver that. I want British businesses to be able to export without friction into the European market, because we know that is good for them.

The Business Secretary raised some eyebrows at the weekend by suggesting that MPs’ pay should be linked to economic growth. Who does the Trade Minister think should get the biggest pay rise? Is it the Conservatives and Reform, who have probably knocked up to 8% off our GDP; Labour MPs, who are contributing to as much as 0.5% with all their accumulated trade deals, including with the EU; or Lib Dem MPs, who are suggesting a customs union that could put 2.2%—

Order. I think we can let that one go. I cannot even begin to see a link. I call the Liberal Democrat spokesperson.

Liberal Democrats are calling for a new UK-EU customs union—

Again.

Still! That would cut red tape for businesses across the country, boost growth by more than 2.2% and raise at least £25 billion a year in tax revenue. The Prime Minister’s chief economic adviser has recommended a customs union with the EU as one of the most effective ways of generating growth, the Health Secretary has talked up the benefits of a customs union and the Deputy Prime Minister has also suggested that countries within a customs union tend to see stronger economic growth. However, the Secretary of State for Business and Trade told the Financial Times last week that negotiating a customs union would be “foolish”. Will the Minister please explain how the Secretary of State plans to deliver growth without a customs union?

The hon. Lady knows that I think Brexit was a terrible, self-inflicted mistake. We need to make sure that we achieve what was promised by the Brexiteers, some of whom are sitting on the Conservative Benches, when they said we would achieve frictionless trade with the European Union as a result of our deal. I think that we can, first, do that on food and when we secure our SPS deal. We are working on the electricity market as well. Then we need to proceed with trying to ensure business mobility so that people can travel across the European Union and, as I said, we need to make sure that British artists and performers can perform across the whole of the European Union.

I have to say that it feels—I hate to use the term “groundhog day” in relation to the Lib Dems, but I can remember when they were in government. O Lord.

I can’t.

No, well quite. This is the problem: the Lib Dems never remember when they were in government and they landed us with half the problems that we are trying to sort out today.