It gives me pleasure to follow the hon. Member for Witney (Robert Courts).
The debate on our relationship with the EU has been dominated today by slogans and emotion, but it is actually about our trade arrangements, which are a very practical matter. It is business that is most affected, and what amazes me is that this Government, who constantly preach to those of us on the Opposition side of the House about not being on the side of business, never sat down with businesses to work out what they needed from our deal with the EU.
I have sat down with the businesses in my constituency, both individually and at business summits, to see what they want from our deal, and they have a wide variety of concerns. The biggest is regulatory divergence, the threat of which is already preventing companies in my constituency from tendering for contracts. They are worried about tariffs and import duties, which raise their costs, and about losing EU funding in grants and loans from the European Investment Bank, which have already reduced from £7 billion a year to just £2 billion in 2017 and will restrict investment in our businesses even more. They worry about the cost and paperwork of visas, making it harder and more expensive to access skills and for their people to move around Europe. They worry about access to the single euro payments area and the VAT information exchange system. These may be boring issues, but they are very real and very practical for all our businesses. They worry about losing their access to free trade not just with the EU but with the 65 countries to which they get preferential free trade access, with a further 25 agreements due to take effect. They also worry about friction at our borders, which will make just-in-time production impossible and lead to late payments if contracts cannot be fulfilled in time.
It is no wonder that the small and medium-sized businesses in my constituency are in despair. Several have already had to set up offices in, and transfer jobs to, EU countries to continue bidding for contracts. It was also reported last week that the banking sector has already moved almost £1 trillion out of the UK, equating to 10% of its assets. The longer we go on with no practical deal in sight, the more businesses will continue to move. So far, we have been cushioned against the full economic impact of the leave vote by the drop in the value of the pound, but we have started to see inflation creeping up and things are becoming more expensive.
Our deal with the EU affects not only businesses but people. Yes, a majority of people voted in 2016 to leave the European Union, and I respect that, but this Government did not respect those people enough to ask them what they wanted from that deal. I asked all the voters in High Peak what they wanted, and half of those who voted leave wanted to stay in a customs union and half wanted access to the single market. The Government have not listened to them, and we have ended up with a deal that is not a deal. It is simply a stopgap until the end of next year and provides no certainty for the future. The only certainty is years of wrangling over a final deal, as the Conservative party wrangles over who its next leader will be and the potential leaders offer alternative versions of our final deal. The Prime Minister can give us no commitments about that deal. She has opted out of leading us into it.
12.36 am