- Dr Gerard Lyons also hit out at the Brexit policies of previous Tory governments
Britain’s economic growth is “not dependent on the EU”, a leading economist has warned the new government.
Dr Gerard Lyons has urged the Prime Minister to vigorously resist calls to rejoin the single market, saying he should instead ‘take full advantage’ of Brexit.
He argued that it was best to ignore pro-Brussels voices that “exaggerate” the benefits of membership, saying Work should instead focus on domestic challenges.
“The government must have the confidence to take its position outside the EU institutions,” he wrote in a paper for the Centre for Policy Studies.
‘Rejoining the EU, the single market or the customs union does not solve the UK’s growth problems and should not be part of a growth strategy, despite recent calls from some to do so,’ he continued.
Dr Gerard Lyons, who previously advised former Prime Minister Liz Truss, has also criticised previous Tory governments for their Brexit policies
‘The biggest challenges facing the UK existed long before Brexit. Solutions do not depend on EU membership.’
Dr Lyons’ comments, as reported by The Telegraph, came after Sir Keir Starmer promised his government would oversee a “reset” of relations with Europe.
While pushing for closer trade ties, the Labour leader has repeatedly ruled out a return to the common market or a customs union.
That pledge, along with the rejection of a potential return to free movement of people, was set out in Labour’s election manifesto and has been described as one of the “red lines” that Starmer will not cross in his pursuit of a better trade deal with Brussels.
Such pledges put the Labour leadership at odds with some MPs and much of its support, who still favour reunification with the bloc.
Dr Lyons argued that much of the ‘rumour’ about the benefits of the single market was ‘based on a misunderstanding of our underlying growth problems’.
He pointed out that Britain’s persistent trade deficit first emerged in the 1980s, when the country was still a member of the EU.
He added that any future relationship with the EU should not be based on “wishful thinking” but on “an accurate assessment of the current situation”.
The economist, who previously advised former Prime Minister Liz Truss, also slammed previous Conservative governments and what he described as their failure to “deliver a well-thought-out economic policy for post-Brexit”.
This comes after Sir Keir Starmer pledged his government would oversee a ‘reset’ of relations with Europe
He claimed that by failing to seize the potential benefits of leaving the EU, they had “helped create an economically damaging narrative about the UK on the world stage”.
After his election last month, the new prime minister pledged to improve former Prime Minister Boris Johnson’s “failed deal”.
Starmer said in Belfast that his new government must first make changes to the current deal to build confidence in the European Union.
“We cannot have a better relationship unless we show that we are committed to the relationship and the agreements that have already been made,” he said.
But last week it was reported that Brussels has handed the UK a list of demands in return for closer ties.
During his first meeting with Europe Minister Nick Thomas-Symonds last month, Commission Vice-President Maros Sefcovic presented eight demands.
These measures include fully implementing existing Brexit agreements for Northern Ireland and enshrining the rights of EU citizens living in Britain as a “test of good faith”, the FT said.