A Treasury minister has sparked controversy by claiming that Britain rejoining the European Union is 'an inevitability', as the Labour government continues its push for closer ties with Brussels.
Lord Livermore's Personal View
Spencer Livermore, a former aide to ex-prime minister Gordon Brown and now a Labour peer, insisted it was 'absolutely in our national economic interest' to return to the bloc. He offered this as his 'personal view' during a heated exchange in the House of Lords.
Lord Livermore was responding to challenges from Craig Mackinlay, the former Conservative MP who now sits in the Lords as Lord Mackinlay of Richborough. Mackinlay highlighted how the Government is enjoying the freedoms afforded by quitting the EU.
Brexit Dividends Debate
Lord Mackinlay told the chamber: 'It must be noted the Government are enjoying and using many of the Brexit dividends that were given to them.' He pointed to 'zero tariffs on anything they please' and the 'potential nationalisation of steel' as examples.
Labour recently launched a consultation on suspending tariffs affecting a selection of supermarket items — including fruits, fruit juices, pasta, couscous, and tuna — in response to the economic impact of the Iran crisis. Meanwhile, the Steel Industry (Nationalisation) Bill, included in last month's King's Speech, is making its way through Parliament.
Lord Mackinlay argued that due to Brexit, the Government 'is able to do whatever it wishes in whichever field it wishes to promote economic growth'. He also voiced concern that Keir Starmer's proposed Brexit 'reset' will return the UK to the 'same restrictions' of membership of the EU's single market or customs union.
Economic Damage from Brexit
But Lord Livermore, a member of Chancellor Rachel Reeves' team in the Treasury, replied: 'It really does take a Brexit zealot to say that.' He added: 'Cutting tariffs may gain us 0.001 per cent of GDP whereas Brexit itself has cost us a minimum of 4 per cent of GDP, although estimates now say that it ranges from 6 per cent to 8 per cent.'
'We are seeking to mitigate at the margins the huge damage done to the UK economy by Brexit, so the idea that this is some kind of Brexit benefit is absurd.'
Lord Livermore concluded: 'Should we in due course re-enter the EU? My personal view is that that is an inevitability: of course the UK will at one point re-enter the EU because that is absolutely in our national economic interest. In the meantime we are doing the European reset, and that is incredibly important in helping growth in our economy.'
Reactions and Implications
Lord Livermore's comments will heighten fears among Brexiteers about the Prime Minister's attempts to forge closer ties with Brussels. Sir Keir Starmer has repeatedly criticised the 'botched' Brexit deal that Labour inherited from the Tories and vowed to improve the UK's trading terms with the EU.
He is hoping to finalise a new food exports deal with Brussels at a UK-EU summit scheduled for next month, as well as a youth mobility scheme. However, the PM has ruled out a return to the EU's single market or customs union, despite pressure from some Labour MPs.
Wes Streeting, who quit as health secretary last month after losing faith in Sir Keir's leadership, has said he wants to see the UK ultimately return to the EU. He is expected to join any leadership contest to replace Sir Keir, if one is triggered in the coming weeks.
