UK-EU Relations
7. What steps he is taking to improve relations with the EU.
9. What steps he is taking to improve the UK’s relationship with the EU.
16. What recent discussions he has had with his EU counterparts on the future EU-UK relationship.
Just this week and last, I have been across the channel to speak to EU counterparts and counterparts in member states. We are making good progress with the EU in our strategic partnership in a changing world. It is a strategic partnership that is good for bills, good for borders and good for jobs.
Mr Speaker, I wish you and the Minister a happy St George’s day. I congratulate my right hon. Friend on rejoining the EU Erasmus+ scheme. It is very exciting for students across the UK, including at the University of Reading. On energy prices, we are all paying the price of Trump’s war in Iran. It is vital for us to work with our European allies to lower energy prices, including reducing the trade costs brought up by the Tories’ bad Brexit deal. Will the Minister give us an update on his negotiations for the UK to participate in EU internal electricity markets?
Erasmus+ will indeed provide tens of thousands of opportunities, particularly for young people. On energy, we are committed to strengthening our energy partnership with the EU to lower bills for households and businesses. On the negotiations my hon. Friend is talking about, I think everybody would see that strengthening this international co-operation is vital to bolster energy resilience against the kind of global shocks we have seen in recent weeks.
Mr Speaker, Happy St George’s day to you and to the House. From pandemics and health emergencies to the impact of climate change and Russian aggression on our border, residents in Exeter know that the EU and the UK have shared challenges and opportunities. What discussions has the Minister had on forming a UK-EU resilience partnership, as suggested by UK in a Changing Europe, so we can effectively manage those shared challenges together?
My hon. Friend is absolutely right that the UK and EU share many challenges. That is why the Government have agreed a new strategic partnership with the EU to bolster our shared resilience through deeper co-operation between the UK and the EU across defence, industry, politics and the wider economy—the foundations upon which our collective European security and prosperity will rest.
The European Union currently allows for food production methods that are either banned or being phased out in the UK, which is undercutting British farmers. Will the Minister outline what discussions have taken place with the European Union to ensure parity of welfare standards so that British farmers are not priced out of the market?
The common understanding that we agreed with the EU last year allowed for particular carve-outs, which the Government are negotiating. I will say to the hon. Gentleman, though, that the sanitary and phytosanitary agreement—the food and drink agreement—will mean that we will be able to export to the EU products that we are currently unable to export, and will take away costs and fees that businesses have to pay. I used to think that the Conservatives were the pro-business party—they might want to actually approve of that.
Is the House right to understand that the Government believe that the economy has grown significantly less—measurably less—as a result of leaving the EU, and that this is one of the purposes behind the reset? [Hon. Members: “Yes!”] I hear Government Members saying yes. Could the Government then set that out, with all the evidence and arguments proving the case? Looking at the evidence, the British economy grew at about the same rate as France and Germany when we were in the EU and, since we left, we have been growing at about the same rate as France and Germany; in fact, this year, the British economy is growing faster than Germany’s. Where is the evidence that Brexit was economically damaging? Will the Minister publish a proper statement on that?
The hon. Gentleman and I work very well on other issues; I suspect that over the next 12 months, this is an issue on which we are going to disagree. If he is genuinely asking me at the Dispatch Box to provide evidence to the country about the lamentable performance of the economy in the latter years of the previous Conservative Government, then what a pleasure it will be!
I thank the Government for the grown-up approach they have taken to improving our relations with our friends and neighbours in the EU. In contrast—as we can see today—the Conservative party is still playing politics with our closest allies, and my generation has paid the price. With that in mind, will the Minister set out what steps are being taken to ensure that young people in Kettering and across the country take up the opportunity to study in the EU, now that we have rejoined the Erasmus scheme?
The new UK-EU strategic partnership will bear down on household bills, provide opportunities for young people and create jobs. The Opposition, for reasons best known to them, have decided to oppose all that.
I wish the House and you, Mr Speaker, a happy St George’s day. I welcome the fact that the Government are taking steps to improve and deepen our trading relationship with Europe, which is absolutely crucial to businesses right across my constituency, which have told me again and again of the challenges they face as a direct result of this flawed Brexit process. Could the Minister set out what plans he has to ensure that proper parliamentary scrutiny is given to anything relating to improving relations with the EU, given that we no longer have a Select Committee that deals directly with those issues?
There will be a Bill—a piece of primary legislation—going through Parliament this year, which will of course have appropriate scrutiny, as will our relationship with the EU going forward. I very much look forward to those debates. I will just give one example of how we are helping businesses. Businesses in the UK have had to pay up to £200 for export health certificates—more than 1 million of them—since 2023. I say that they should not have to pay those fees any more; the Conservatives and Reform say that they should.
I call the shadow Minister.
The UK has become a global leader in agri-tech and particularly selective breeding, largely because of our flexible regulatory framework, including the Genetic Technology (Precision Breeding) Act 2023. That would not have happened if we were still members of the European Union. The BioIndustry Association says that dynamic alignment would threaten UK leadership in biotech innovation. Will the Minister commit to securing a carve-out for precision breeding so that our success in this vital sector is not threatened by new or future EU legislation?
The common understanding agreed between the UK and the EU last May provides for carve-outs, subject to negotiation. But if the hon. Gentleman seriously thinks that all the export costs and fees that businesses are currently paying, which the SPS agreement will take away, should continue, he should say so.
I think the House and the public outside will have heard that the Minister is refusing to give that commitment to the representatives of this vital sector. However, he will know that the high cost of fertilisers is one of the biggest pressures on British farming and food prices. Raising carbon prices to the level of the EU’s carbon border adjustment mechanism is projected to add around £100 a tonne to that cost. At a time of high food costs and squeezed food security, does he really think that now is a sensible time to hammer British farming yet again?
That is an absolutely absurd question. The hon. Gentleman is asking that question when his party’s position is to keep in place all the fees that we currently have to pay on exports to the EU. He also talks about the emissions trading system linkage. Without mutual exemptions from the carbon border adjustment mechanism, businesses will have to pay around £700 million in carbon taxes. The consequence of his party’s position is that they would have to pay them.