Healey: EU deal benefits must outweigh costs
Healey: EU deal benefits must outweigh costs

Chancellor John Healey has said there are “very definite benefits” to securing a favoured deal with the EU, but insisted the UK should not agree to terms at any cost. His remarks come ahead of Prime Minister Andy Burnham's attendance at a UK-EU summit in Brussels, the second such annual event since Brexit.

Healey sets out conditions for EU deal

Speaking to the Commons Treasury Committee, Mr Healey said: “There are very definite benefits if we can secure the deal that we want. There are benefits to the cost of business.” Asked whether there would be a “limit” to securing a deal with Brussels, he replied: “I think that has got to be true of any negotiator. You have to be sure that the benefits outweigh the costs.”

His comments follow signals suggesting scepticism about the UK rejoining the EU. Asked by Channel 4 after last month's Budget whether he shared Mr Burnham's suggestion that rejoining could happen in his lifetime, Mr Healey said: “I'm older than Andy Burnham. I don't expect to see that.” He is 66, while Mr Burnham is 56. Treasury officials later played down the seriousness of his comments.

Burnham's summit agenda

Mr Burnham is set to meet António Costa, President of the European Council, and Ursula von der Leyen, President of the European Commission, in Brussels. Areas expected to be discussed include free movement, and possible confirmation of the removal of post-Brexit checks on food and agriculture exports, alongside how much the UK will contribute to the EU budget in exchange.

Downing Street says the PM will use the summit to push for deals to cut costs and red tape for British farmers and businesses, support industry and “boost growth in every part of the country”. Mr Burnham has said he would welcome an “honest discussion” about the prospect of returning to free movement between the UK and the EU, despite migration dominating debate during the 2016 Brexit campaign.

Opposition to rejoining

Former Tory PM David Cameron has said Britain should not rejoin the EU, warning Mr Burnham that starting a conversation about rejoining would be “very long and painful”. Speaking in a Bloomberg interview, Mr Cameron, who led the Remain campaign in 2016, urged Mr Burnham not to trigger another “decade-long debate about whether should be in or out”. He also said the UK should not enter a customs union with the EU.

The lead-up to the event and the summit itself are set to prove highly controversial given the outcome of the Brexit vote a decade ago.

Data centres and Heathrow

Grilled by MPs, Mr Healey also insisted the government would not allow a “free-for-all” when it comes to building new data centres needed for the roll-out of AI. He said measures announced in last month's Budget would provide safeguards, adding: “I don't want to see a free-for-all in data centres as we saw in the US,” while claiming it was important to ensure sensitive data, from health to security, is kept in the UK.

Mr Healey said new data centres must provide “clear committee benefits”, adding: “I am ready to say no to data centres where they don't bring those benefits.” He was also questioned on delays to the decision on allowing a third runway at Heathrow, saying: “I am frustrated.”