A no deal Brexit will hit family budgets – Jenny Chapman MP

Jenny Chapman MP, Labour’s Shadow Brexit Minister, commenting on the report by the Resolution Foundation and Sussex University’s UK Trade Policy Observatory on a “no deal” Brexit scenario, said:

“This report is further evidence of how a no deal Brexit will hit family budgets and the potential dire consequences of the Government’s chaotic handling of the Brexit negotiations.

“Britain crashing out of Europe without a deal is simply not a viable option. No deal risks price hikes in the shops as a result of extra charges on everyday items, such as food and drink. And yet, the only solution Ministers have offered to this potential crisis is ‘dig for no deal’.

“Theresa May must use this week’s EU Council meeting to end the deadlock in Brexit negotiations and protect Britain from an economic cliff edge. That means agreeing strong transitional arrangements within the single market and a customs union”.

Bill Esterson MP, Shadow Minister of State for International
Trade,
responding to reports that the ONS has revised the UK’s net international
investment position downwards by £490 billion said:

 

“Earlier
this year the Secretary of State for International Trade boasted of
a record number of FDI projects, but today’s figures reveal the truth of
what is actually happening under his watch.

 

"The Government
certainly is breaking records though – in the last quarter the UK’s
deficit in goods exports hit a record high. While Liam Fox repeatedly blames
those who disagree with him as “naysayers”, it is his party’s failure to
attract investment into the UK or to drive overseas exports that is deterring
investors.

 

"Labour have
repeatedly warned that depending on the drop in Sterling to boost exports is no
substitute for a proper trade strategy. Today’s figures show that the
Government is failing to build the confidence in our economy that the country
needs to succeed after we leave the EU.”

 

Ends

 

Notes to
editors:

 

• Statistics issued by the
  Department for International Trade on 6 July 2017 show a rise of 2% year
  on year for the number of FDI projects recorded in the United Kingdom for
  2016/17 (‘Inward Investment Results 2016-17’, Department for
  International Trade, 6 July 2017)

 

2015-16

2016-17

% Change

Total
projects

2,213

2,565

2%

Involved
projects

1,731

1,859

7%

Total
jobs

115,974

107,898

(7%)

New jobs

82,650

75,226

(9%)

Safe
jobs

33,324

32,672

(2%)

• This
  notwithstanding, an analysis of the historical number
  of FDI projects reveals a stagnating in
  recorded FDI projects when contrasted to year on year growth
  over the past five years. DIT’s own figures show a tapering off inFDI projects
  and a significant decrease in the number of new jobs being created.

2012-13

2013-14

%
Change

2014-15

% Change

2015-16

%
Change

2016-17

%
Change

Total
projects

1,559

1,773

13.8%

1,988

12.1%

2,213

11.3%

2,265

2.3%

New jobs

59,153

66,390

12.2%

84,603

27.4%

82,650

(2.3%)

75,226

(9%)

John
McDonnell MP, Labour’s Shadow Chancellor, responding to the CBI’s pre-Budget demands, said:

“Labour
welcomes the CBI’s demands on the Chancellor to bring forward vital government
investment in infrastructure and research, backed up by a real industrial
strategy targeting high-potential sectors. The Chancellor has sat on his hands
for the last 15 months and failed to act as productivity and real wages have
fallen. There is now a consensus on the action needed to turn our economy round
after seven years of Tory failure.

“Only
Labour has committed to investing three per cent of our GDP in research and
development by 2030, and a plan to deliver infrastructure across the whole
country, to secure decent, well-paid jobs in an economy that works for the
many, not the few.”

Rebecca Long-Bailey MP, Labour’s Shadow Secretary of State
for Business, Energy and Industrial Strategy, commenting on reports
that Vauxhall is planning to cut 400 jobs in Ellesmere Port, said:

“After the Government pledged to do everything it could to
protect Vauxhall workers when PSA took over the company earlier this year, we
are now seeing potential job losses.

“The Government’s lack of a bold and consistent industrial
strategy is holding Britain back. The Government cannot simply offer secretive
bespoke deals to some car manufacturers and not others.

“The Government urgently needs to support the plant, provide
Brexit certainty to the sector and attract the investment it urgently
needs.”

Jenny
Chapman MP, Shadow
Brexit Minister, responding to Chris Grayling’s comments that Britain
should grow more food in the event of no Brexit deal, said:

“This
is yet another example of the Tories’ chaotic approach to the Brexit
negotiations.

"Rather
than planning for no deal, ministers appear to be telling us to dig for no
deal. British farmers already work incredibly hard and to suggest that they
could simply grow more food is ridiculous.

"The
truth is the biggest threat to Britain crashing out of Europe with no deal is
Tory infighting. Ministers should stop fighting amongst themselves and start
putting the national interest first. That means avoiding a cliff edge for our
economy and agreeing strong transitional arrangements within the single market
and a customs union”.