PARLIAMENTARY DEBATE
UK-EU Summit - 20 May 2025 (Commons/Commons Chamber)
Debate Detail
First, however, I would like to say something about the horrific situation in Gaza, where the level of suffering, with innocent children being bombed again, is utterly intolerable. Over the weekend we co-ordinated a response with our allies, as set out in my statement with President Macron and Prime Minister Carney last night. I want to put on record today that we are horrified by the escalation from Israel. We repeat our demand for a ceasefire, as the only way to free the hostages; we repeat our opposition to settlements in the west bank; and we repeat our demand to massively scale up humanitarian assistance to Gaza. The recent announcement that Israel will allow a “basic quantity of food” into Gaza is totally and utterly inadequate, so we must co-ordinate our response, because this war has gone on for far too long. We cannot allow the people of Gaza to starve, and the Foreign Secretary will come to the House shortly to set out our response in detail.
Let me turn now to the three deals that this Government have struck. The principles we took into the negotiations are clear and simple. Does it drive down bills? Does it drive up jobs? Does it strengthen our borders? In each case, the answer is a resoundingly yes. These deals release us from the tired arguments of the past and, as an independent sovereign nation, allow us to seize the opportunities of the future—a clear message, sent across the globe, that Britain is back on the world stage.
We have a trade deal with the world’s fastest growing economy, India, cutting tariffs for British industries, which is a huge boost for our whisky and gin distilleries—their only concern now is whether they can produce enough to sell—and for our car manufacturers, with tariffs slashed from over 100% to just 10%, and no concessions on visas. We have a trade deal with the world’s richest economy, the United States, slashing tariffs, saving thousands upon thousands of jobs in car manufacturing in places like Jaguar Land Rover, protecting our steel and aluminium exports, and safeguarding the interests of our hugely important pharmaceutical sector.
But I can already see that, when it comes to this hat-trick of deals, it is our new partnership with the EU that the Opposition most want to talk about—and given their abject failure to strike a deal with India or the US, I cannot say I blame them—so let me spell out the benefits of this deal, which gives our country an unprecedented level of access to the EU market: the best access of any nation outside the EU or European Free Trade Association.
I will start with our security. When Russian tanks rolled into Ukraine over three years ago, a gauntlet was thrown down, and it is our responsibility to step up. That is what this world demands, and it is what this partnership delivers, strengthening our national security through a new security and defence partnership that paves the way for British defence firms to access the EU’s €150 billion defence fund. That will support British jobs, British wages and British livelihoods.
The partnership also increases co-operation on emissions trading, saving UK businesses from having to pay up to £800 million in EU carbon taxes—once again, backing British businesses. The deal will drive down bills with increased co-operation on energy, because the agreement negotiated by the Conservative party left us with a more expensive way of working with our neighbours—a needless rupture, despite our grids being connected by undersea cables. This partnership brings those systems together again, benefiting British bill payers and boosting clean British power in the North sea.
This partnership also strengthens our borders, because again, the previous deal left a huge gap and weakened our ability to work together to tackle illegal migration—the ultimate cross-border challenge. It closes that gap, including joint work on returns, preventing channel crossings and working upstream in key source and transit countries, co-operating along the whole migration route to strengthen our hand in the fight against the vile smuggling gangs. It boosts our co-operation on law enforcement, combating terrorism and serious organised crime with closer operational work with agencies like Europol and better sharing of intelligence and data, including, for the first time, facial imaging.
This partnership helps British holidaymakers, who will be able to use e-gates when they travel to Europe, ending those huge queues at passport control. It delivers for our young people, because we are now on a path towards a controlled youth experience scheme, with firm caps on numbers and visa controls—a relationship we have with so many countries around the world, some of which were even set up by the Conservative party. We should be proud to give our young people that opportunity. And, not for the first time, this Government have delivered for Britain’s steel industry, protecting our steel exports from new EU tariffs and backing our steel sector to the hilt.
Last but certainly not least, we have a new sanitary and phytosanitary deal, as promised in our manifesto, which will cut the price of a weekly shop, meaning that there will be more money in the pockets of working people, less red tape for our exporters, no more lorry drivers sitting for 16 hours at the border with rotting food in the back, and no more needless checks—the inevitable consequence of the Conservatives’ policies, which made it so much harder to trade even within our own market, between Great Britain and Northern Ireland.
The deal means that British goods that have long been off the menu in Europe can regain their true place, including shellfish, which are hugely important for Cornwall, Devon and Scotland. Not only does our deal on fish provide stability, with no increase in the amount that EU vessels can catch in British waters, but the new SPS agreement slashes costs and red tape for our exports to the European market. We sell 70% of our seafood to that market, so there is a huge opportunity that Britain’s fisheries, in which we have made a £360 million investment, will now look to exploit.
The reaction to this deal from business has been absolutely clear. Mr Speaker, I know you are a stickler for keeping to time, so I do not have time to run through the list of supportive quotes from businesses. [Hon. Members: “Go on!”]
For years, we were told that this could not be done. What the Conservatives meant was that they could not do it. We were told that a deal with the US or India was impossible; what they meant was that it was impossible for them. We were told that a choice must be made between the US and EU; what they meant was that they could not do a deal with both. This Government can and will, because we stay in the room, we fight for the national interest, and we put the British people first. These deals represent a signal that we are back on the world stage—a global champion of free trade, playing our historic role on European security—but above all, they are deals that put money in the pockets of working people, because that is what independent, sovereign nations do. I commend this statement to the House.
This is not a deal made for Britain; this deal is made for Labour’s public relations, to show Labour on the world stage, but it is a stitch-up for our country in return for short-term headlines. Let us take the Prime Minister’s abject failures one by one. First, on fishing, he has given away the prize most desired by EU member states, and he has done so for almost nothing. It is very easy to sign deals if you are prepared to give everything away for pennies. This deal locks out our fishermen until 2038. We are now in a worse position than the Faroe Islands—a set of islands with the population of Scarborough, but which gets to have annual negotiations. The Prime Minister quoted some organisations that welcome his deal—he does not listen to them normally—but he left one out deliberately: the National Federation of Fishermen’s Organisations has described the deal as a surrender and a giveaway. This is a Prime Minister who would pay to give away his family silver. Why is the Prime Minister selling our fishermen down the river? Is it because they do not vote Labour?
Secondly, on food and agriculture, the Prime Minister is going to pay the EU to abide by laws that we have no say on. While British farmers struggle with the family farms tax that his Chancellor has imposed on them, their regulations will now be made in Paris and enforced in Brussels. It is a total capitulation. We are not in the EU, and we are not at the table, so can the Prime Minister tell us how he will ensure accountability for the hundreds of regulations that he has signed this country up to?
Thirdly, on energy, the Prime Minister has shackled us to the EU’s emissions trading scheme. That means that the Government can no longer cut energy costs without the EU’s permission. It will also unravel parts of the India free trade agreement that he has just negotiated. This is not a technicality; it is a betrayal. The House should be in no doubt that this means higher bills, more pain and less flexibility.
Fourthly, on the Prime Minister’s manifesto promises, he said that we would not rejoin the single market. He promised no new payments, and that he would protect British interests. That promise has lasted about as long as his commitment to protect pensioners’ winter fuel allowance. He said whatever was needed to win power, and now he will say whatever is needed to keep it, even if it means selling out our sovereignty, our businesses and the public.
The truth is that most of what was announced yesterday was not a deal. There was no binding agreement on anything. Most of the items outlined are simply agreements to enter into further discussions, which we are already having. The Prime Minister is boasting that we will now avoid airport queues because we will get access to EU e-gates. It sounds great, except it is not true; some airports already allow that, and this deal does not guarantee it anywhere, as each country still has to agree. That sums up this deal perfectly: it is a lot of spin to disguise the terrible substance.
Having previously ruled out a youth mobility scheme, the Prime Minister is now desperately trying to hide his latest U-turn by rebranding the scheme as an experience. That is risible. We have no details on any cap or time limit, which begs the question: why are the Government talking about increasing migration before they have got a grip on the small boats or the legal migration system? I know that the Prime Minister does not like answering questions, but people out there want to know. Can we have some honesty about what has been discussed? How many young European workers does the Prime Minister think would be acceptable, and will they be able to bring dependants?
Even the defence commitments in this deal are hopelessly one-sided. We are making payments, but the EU is offering dialogue and consultation. This is a pitiful return for the country that leads NATO in Europe, and has troops on the ground in Estonia, defending our allies. Can the Prime Minister tell us why there was not a single word in his statement about the money that we will now be sending to Brussels? Can he set out how much those payments will cost taxpayers? In government, details matter, and so does honesty. [Laughter.] Labour Members are laughing, but this is a bad deal for the country. Look at them. This is how they laughed at the Budget. They have no idea what it is that they have signed up to. The Prime Minister said that he would stay out of the single market; he is going into the single market for agrifood, electricity and energy. He said that he would stay out of the customs union, but he is accepting EU tariff rules. How does he plan to stop the EU changing them to our disadvantage? He has no idea, and neither do any of them.
The British people know when they are being misled. They know that headlines fail. The Prime Minister did not listen to the CBI on the jobs tax, and he did not listen to the Federation of Small Businesses on the family farms tax. This deal has already unravelled. The damage is becoming clear, and the political consequences will be huge, and here he is, trumpeting his success. When he stands up in a moment, he will deflect, dismiss and distract, but we all know the truth. This is a fiction of a speech, a fraud of a deal, and a failure of a Prime Minister.
On defence and security, we have greater operational co-ordination, and the right hon. Lady is against it at a time like this. It opens the gate to the EU defence procurement fund of €150 billion; that was a condition of the deal. She complains about emissions. [Hon. Members: “How much?”] I will tell you how much. Businesses were going to pay £800 million a year in tariffs that they will not now pay. That is why they are coming out in support of the deal. That is how much. The detail matters.
On energy, we are already connected, but we are not using that energy connection. We have electrical access to the market. On steel, we are getting rid of the tariffs. That will support British steel, but the right hon. Lady is against that, yet again. She says that e-gates access is already in existence; this deal clears the way for e-gates access. That is the huge difference it makes. [Interruption.] If any Conservative Members doubt that, they should travel across a border today and see the long queues.
On law enforcement, we have better operational working with Europol, and the right hon. Lady is against it. We have information sharing on facial mapping and dealing with criminal records, and she is against it. She is absolutely unserious. She is also against the India deal, which of course does huge things for trade in sectors such as whisky, where their only concern is whether they can produce enough. They have been absolutely clear about supporting the India deal—a deal that the Conservatives tried to do—and she now says that she is against it.
We have the US deal, which saved thousands upon thousands of jobs in car manufacturing and at Jaguar Land Rover. I do not know whether the right hon. Lady had the chance to make that trip to JLR, but she really ought to before she responds like that again. The US deal reduces tariffs on steel, so that our steel can be sold to America, and supports our whisky and gin, and she is against it. She is against every single deal. She is the only ex-Trade Secretary who is against every single deal. These deals have been welcomed broadly because they are good deals. You do not get a great long list of endorsements from all the business associations and companies for no—[Interruption.] The Conservatives are so unserious; they are lost in a descent into the abyss. They used to be a proud party of trading agreements, and they have slid off into the abyss. That is where they are.
On fishing, none of the rights negotiated by the Conservatives have been removed. There is no change in access for coastal communities, which is the same as before. There is no reduction in the British quota or increase in the EU quota; they are the same as before. We have reciprocal arrangements, which are the same as before. What is new is having the SPS agreement for the first time, and it is permanent. They were unable to do that. It reopens the EU market for shellfish and makes it much easier to sell British fish to our largest trading partner. That is hugely significant, because 72% of British fish is traded into EU markets, and it is now easier to do that. We are backing that with £360 million through our fishing and coastal grants. The Leader of the Opposition talks about the youth experience scheme. That scheme is capped, it is time-limited, and it is balanced.
In relation to standards, the truth is this: we are currently aligned in our standards, but we do not get the benefit of that. We want to continue to have high standards; that is what the British public want, and it is what this deal delivers. We will have a role in shaping any future rules, and application of them is specifically subject to our constitutional arrangements. We will have a process in this Parliament to apply the rules, but to be clear, we are already applying those rules at the moment—we are just not getting the advantage. This deal strips that away. It is good for our country and good for our economy, and it is a shame that the Leader of the Opposition cannot stand up and support it.
We have a deal, but we do not have a date. The Office for Budget Responsibility cannot score the gains, businesses cannot plan for the benefits, and we cannot suspend customs checks in Northern Ireland until we know when the new SPS checks will come into force. What timetable has the Prime Minister given his negotiators for when that SPS deal will come into effect? Business needs certainty, and for that, we need clarity.
I assure my right hon. Friend that we have moved at pace to get the deals, and our instruction to our teams now is to move at pace to implement them. That is what we will do. We negotiated these deals in a short number of months, and we will keep moving at the same pace.
Turning to the EU reset deal, the Prime Minister knows that we do not think this deal goes far enough to fix our broken relationship with Europe, but there are many parts of it that we welcome. We have long been arguing for an agrifood deal to help British farmers export to Europe; for a youth mobility scheme to give our young people incredible new opportunities and British businesses, especially in hospitality, a boost; and for closer alliances on defence in the face of Putin’s imperialism and Trump’s unpredictability. I welcome the progress on those issues, even if there is only very limited progress on things such as youth mobility.
We have all seen the terrible damage caused by the Conservatives’ Brexit deal, and hearing the Conservative leader complain today is like listening to a backseat driver who previously crashed the car. Our country has moved on from the divisive Brexit wars of a decade ago, and some Members of this House need to do the same. However, does the Prime Minister accept that this deal must be only the first step, and that we must be far more ambitious in strengthening our economic and security ties with our nearest neighbours? We believe that a bespoke customs union is a key part of that—not turning back to the past, but forming a new partnership that serves our national interest. I know that the Prime Minister once made that a red line, but he will accept that the world has changed since then, so will he open negotiations on a customs union to get a better deal for Britain—a trade deal to dwarf all other trade deals?
On the question of a customs union, the problem with the right hon. Gentleman’s proposal—as I know he knows—is that we have just struck deals with India and the US. If we now undo that good work, we undo all the benefits of those two deals. For JLR and other car manufacturers, this is the here and now of their jobs at the moment. That is why we had our red lines and kept to those red lines, and I am not prepared to rip up the benefits that we have negotiated in those deals.
Turning to the grown-up EU deal, which comes hard on the heels of the two other recent trade agreements, the Government are rightly confident that those deals will be popular and will provide great benefits to our country. As such, I ask the Prime Minister this: why not take this opportunity to fix a glaring hole in our democracy and simply put those agreements to a vote, allowing them to be scrutinised by this place? I can assure him that they will be passed.
As for control of borders, net migration quadrupled after Brexit to nearly a million. That was not controlling our borders; it was a complete lack of control by the Conservative party. On the question of payments, it is important to appreciate that we have achieved unprecedented access to EU markets without the budgetary payments of member states. That is an incredible achievement. The only payment under the SPS agreement is administrative—to support the relevant costs of implementing and administering the scheme. For schemes and payments where it is in our national interest, we will negotiate proportionate contributions, as already happens under the deal negotiated by the Conservatives—for example, in relation to research and development and Horizon. The hon. Gentleman knows all that very well.
The deal does provide for co-operation on carbon storage, so will the Prime Minister build on that good work by committing his Government to providing the financial support that is necessary to take forward the Acorn project in the north-east of Scotland?
I do understand the issue of veterinary medicines, and we are working to resolve the problem that the right hon. Gentleman has rightly described. I think we are in a better position to resolve it by co-operating and co-ordinating with the EU, which is what we are doing. On the Windsor framework, it is important that we implement the agreements that we have in place, because the blunt truth is that no one will make further agreements with a country that walks away from agreements that it has already put in place.
On the question of the ECJ, if an issue of European law needs to be referred by the independent arbitrators to the court, it will give a ruling on the interpretation. It will then pass back to the arbitrators to make the final decision. That is how trade deals work, but I understand the Conservatives’ new policy. Their new policy is against any trade deals. That has never been the Conservative party’s policy before, but it is good that we have clarity now.
On the question of timing, we will do it as quickly as possible. We are moving at pace. I appreciate that for farmers in his constituency and across the country, it is hugely important to undo the damage that the previous Government did.
“a better deal…can be had.”—[Official Report, 7 May 2025; Vol. 766, c. 679.]
Does he agree that EU access to our waters until 2038 is only a better deal for Brussels and nothing short of a betrayal of British coastal communities?
“we should retain the benefits of the single market”.—[Official Report, 1 May 2017; Vol. 630, c. 879.]
Given his recent tendency to dismiss the views of others, what would he say to his younger self?
“this deal will help reduce costs, cut red tape, and make it easier for Scottish businesses to compete and grow across European markets.”
Those are not my words, but the words of the chief executive of the Scottish chambers of commerce. Does the Prime Minister agree with me that when Labour negotiates, businesses and customers in my constituency of Paisley and Renfrewshire South benefit?
“ease…pressure on food prices”,
Asda has said it
“has the potential to significantly reduce costs and bureaucracy”,
and the British Retail Consortium has said it will help to “keep costs down”. Does the Prime Minister agree with their assessment that this deal will help families in Bracknell Forest and across the country facing a high cost of living?
“The SPS Agreement should be subject to a dispute resolution mechanism with an independent arbitration panel that ensures the Court of Justice of the European Union is the ultimate authority for all questions of European Union law”,
which, of course, this is. The Prime Minister said that the Court goes back to the arbitration panel; it does that to convey its binding decision, so he is guilty of sophistry at best, and potentially something worse.
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