The Prime Minister opened Cabinet by inviting the leaders of the
Commons and the Lords to update on business in both houses. This
includes statements today from the Prime Minister on the EU
Summit and the Foreign Secretary on the Middle East, ongoing
progress of the Children's Wellbeing and Schools and Employment
Rights Bills, and the upcoming return of the Bus Services
Bill and remaining Commons' stages of the Planning &
Infrastructure Bill.
Turning to the new agreement with the EU, the Prime Minister said
the deal was excellent, broad, and comprehensive, and represented
a new era in relations with the EU where instead of replaying the
old battles we look forward to how we can best put more money in
people's pockets, support jobs, and grow the economy. He said
there was a tangible optimism and confidence amongst the business
community following the deals with India, the US and now the EU,
as seen by the great number of public endorsements, all while
holding the UK's red lines.
The Prime Minister said the deal was a huge win for our food and
agricultural industries, with supermarkets saying it will support
lower prices and higher exports.
On defence, the new Security and Defence Partnership will
open the door for the UK to explore participation in the EU's
proposed €150bn defence fund.
On energy it will allow us to use our interconnectors
properly to cut bills and boost investment in the North Sea,
while the agreement on electricity will save UK businesses from
paying the EU's new carbon tax.
On steel the deal protects British steel exports from new EU
rules and restrictive tariffs, building on the deal with the US
and the action taken at Scunthorpe.
On fish, he said the agreement delivers stability, opening the
gate to sending fish and shellfish back to the EU, alongside a
transformation fund of £360 million announced yesterday to help
coastal fishing communities across the UK.
And he said the agreement is good for our borders – because
we will be able to work with the EU to tackle illegal migration
with solutions to the growing migrant crisis – including returns
hubs and other innovative solutions.
The Foreign Secretary added that the Defence partnership comes at
an important time given war in Europe, will compliment NATO,
and offered a significant opportunity for the British
defence industry.
The Chancellor said the agreements on food and electricity
would alone add £9 billion to the UK economy, representing
0.3% GDP, and comes on top of the 0.1% from the India FTA
- as well as the work ongoing on regulatory and
planning reform – which, following the strong economic
growth figures last week and the four interest rate cuts since
the election, has created a sense of momentum and confidence
within the business community.
The Business Secretary said the government has now struck deals
with the biggest economy in the world, the fastest growing major
economy, and now our largest trading partner, and that these
deals would prove to be more than the sums of their parts as
investors look to the UK as a stable and attractive destination.
The Home Secretary said that the agreement marked a significant
step forward on law enforcement and illegal migration, and was
the first time the EU has committed to working with the UK on
preventing channel crossings.
The Environment Secretary said that M&S had said they face
2,000 forms per consignment which has resulted in food rotting at
the border and is why the food and drink industry is so
supportive of the deal.
And the Northern Ireland Secretary said he had received a
universally positive reaction from farmers and businesses in
Northern Ireland.
Finally, the Prime Minister pointed to the intolerable and
unacceptable situation in Gaza, and said we were discussing the
situation with allies which had resulted in the joint statement
issued alongside the leaders of France and Canada, making clear
their opposition to the expansion of Israel's military operations
and calling for an immediate resumption of humanitarian aid. The
Prime Minister said the Foreign Secretary would be making a
statement to the House later today.
