The uncertainty over Britain's EU membership is damaging growth

Conservative MP Robert Buckland says it is time for the UK to engage with the EU constructively.

For some politicos, the debate about the European Union (EU) seems to be a matter of abstract theories and dusty deliberation. For me, as a MP representing an area whose daily business often is within the EU, the reality is somewhat different. I hear from my constituents and local businesses about the problems and opportunities they are facing with their jobs, their household finances, their business prospects and our local economy. Swindon is an outward looking town with a diverse industrial base. For Swindon, read Britain.

We are an attractive country to invest in because we act as an outward-looking springboard into the rest of Europe. In discussions I have held with local businesses, both big and small, it is clear that even if certain regulations here and there from Brussels are inconvenient, the benefits of our access to the single market cannot be overestimated. Sadly, the uncertainty being caused by those flirting with withdrawal from the EU is having a measurable and negative impact. Nature abhors a vacuum: businesses are hedging their bets and not investing in case of an abrupt withdrawal from the EU and corresponding loss of access to the vast European market.

I understand the desire for a more trade-focused European Union. That is why I support the European Commission’s drive to sign new EU Free Trade Agreements (FTAs), such as the EU-South Korea FTA enacted in 2011. This is estimated to be worth £0.5bn to the UK economy, a remarkable figure. Notably, American efforts to sign a similar FTA with the South Koreans have faltered. Efforts by the EU are also underway to sign FTAs with Singapore, Japan and the USA. As the world has globalised, it has become clear that we cannot stand alone. We live in an age of regional power blocs and if we left the EU we would struggle to get a good deal-or even a deal at all-from vibrant countries like South Korea. This is without even mentioning the failure of the World Trade Organisation Doha trade talks, which means that other avenues must be considered.

There are some who have suggested that withdrawal would be the panacea to our current problems. There is no denying that the Eurozone crisis has had a negative impact on our national economy. However, we cannot avoid the impact of the Eurozone crisis by leaving the EU. We are embroiled in the fortunes of the continent and we are best placed inside the tent rather than waiting outside. I would also venture that the Eurozone crisis will also eventually end; it seems really quite reckless to disrupt our relationship with Europe when they are our largest trading partner, receiving 40 per cent of our exports, and will remain so for the foreseeable future. The reality is that we take the long view and remain engaged.

It is a shame that we have seemingly forgotten the pivotal role we have historically played in Europe. Britain has been involved in the affairs of our continental friends for many centuries, from the Congress of Vienna to the Maastricht Treaty. The values of the European Union are inherently British: freedom, democracy, the rule of law, equality and the respect for human rights. The single market, one aspect of the EU that even most Euro sceptics support, would not have been created without our influence. I am reminded of the words by John Donne’s words: “If a clod be washed away by the sea, Europe is the less”. The EU is better as a result of our presence, and we are better as a result of the EU. To put it bluntly, the EU constitutes the world’s largest market and our natural allies in an increasingly globalised, complex world.

Finally, I should note that I recognise a number of problems with our current membership of the EU. There are too many unnecessary regulations, excessive interference from Brussels and ‘gold-plating’ of regulations by Whitehall. I would like to see measurable steps to effect a change in these matters; however, this change will not be achieved by flirting with withdrawal. It is time for us to engage with the EU constructively, help them through this crisis and thereby shape its future in our own interests.

David Cameron gives a press conference after an EU summit last October. Photograph: Getty Images.

Robert Buckland is MP for South Swindon and chairman of the Conservative Party Human Rights Commission

Photo: Getty
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Scotland's vast deficit remains an obstacle to independence

Though the country's financial position has improved, independence would still risk severe austerity. 

For the SNP, the annual Scottish public spending figures bring good and bad news. The good news, such as it is, is that Scotland's deficit fell by £1.3bn in 2016/17. The bad news is that it remains £13.3bn or 8.3 per cent of GDP – three times the UK figure of 2.4 per cent (£46.2bn) and vastly higher than the white paper's worst case scenario of £5.5bn. 

These figures, it's important to note, include Scotland's geographic share of North Sea oil and gas revenue. The "oil bonus" that the SNP once boasted of has withered since the collapse in commodity prices. Though revenue rose from £56m the previous year to £208m, this remains a fraction of the £8bn recorded in 2011/12. Total public sector revenue was £312 per person below the UK average, while expenditure was £1,437 higher. Though the SNP is playing down the figures as "a snapshot", the white paper unambiguously stated: "GERS [Government Expenditure and Revenue Scotland] is the authoritative publication on Scotland’s public finances". 

As before, Nicola Sturgeon has warned of the threat posed by Brexit to the Scottish economy. But the country's black hole means the risks of independence remain immense. As a new state, Scotland would be forced to pay a premium on its debt, resulting in an even greater fiscal gap. Were it to use the pound without permission, with no independent central bank and no lender of last resort, borrowing costs would rise still further. To offset a Greek-style crisis, Scotland would be forced to impose dramatic austerity. 

Sturgeon is undoubtedly right to warn of the risks of Brexit (particularly of the "hard" variety). But for a large number of Scots, this is merely cause to avoid the added turmoil of independence. Though eventual EU membership would benefit Scotland, its UK trade is worth four times as much as that with Europe. 

Of course, for a true nationalist, economics is irrelevant. Independence is a good in itself and sovereignty always trumps prosperity (a point on which Scottish nationalists align with English Brexiteers). But if Scotland is to ever depart the UK, the SNP will need to win over pragmatists, too. In that quest, Scotland's deficit remains a vast obstacle. 

George Eaton is political editor of the New Statesman.