Good morning. The government is obsessed with finding any levers it can that might generate growth. At Davos yesterday Rachel Reeves, the chancellor, was asked if growth was even more important than promoting net zero, and she replied: “Well, if [growth is] the number one mission, it’s obviously the most important thing.” Today the government is announcing potentially significant plans that could limit the scope of judicial review applications to hold back growth. Pippa Crerar, Kiran Stacey and Sandra Laville have the details here.
Economists argue that an obvious move to promote growth would be to have closer trade links with the EU. But the government has ruled out rejoining the single market or the custom union (let alone rejoining the EU proper – which is still largely a taboo proposal in most parts of UK politics). And today a minister has ruled out an EU proposal for the UK to join, not the customs union, but a customs union with the EU.
The idea was floated by Maroš Šefčovič, the vice president of the European commission who is in charge of the commission’s post-Brexit relations with the UK. He is at Davos and, in an interview with the BBC’s economics editor Faisal Islam, he said that a “pan-European [customs] area is something we could consider” as part of “reset” discussions between the UK and EU.
In his write-up, Islam reports:
Šefčovič referred to the idea of the UK joining the Pan-Euro-Mediterranean Convention (PEM).
These are common rules that allow parts, ingredients and materials for manufacturing supply chains to be sourced from across dozens of countries in Europe and North Africa to be used in tariff-free trade.
The Conservatives did not pursue PEM as part of its post-Brexit deal but some firms said it would help the UK rejoin complex supply chains that have been hit by customs barriers.
Speaking at the World Economic Forum in Davos, Mr Sefcovic said the idea has not been “precisely formulated” by London yet and the “ball is in the UK’s court”.
Islam said in his story that the government has “begun consultations with business over the benefits of the PEM plan that could help cut red tape and improve trade”.
But Matthew Pennycook, the housing minister, was the government spokesperson on the airwaves this morning and he shot the idea down. He was giving interviews about the plans to reform judicial review rules. But, on the Today programme, when asked about the Šefčovič proposal, he replied:
We’re not seeking to participate in that particular arrangement.
I think in general the government’s been very clear … we do want a closer relationship with our European partners, both in trading terms, but also, importantly … in terms of security and defense cooperation, where we need to work far more closely. So absolutely, yes, we do want a closer relationship.
As for this particular arrangement, though, we’re not seeking to participate in it at the present time.
That sounded like a fairly clear denial – although perhaps Pennycook’s inclusion of the words “at the present time” when he made his second reference to the UK not participating may signal that the door is not closed for good.
Here is the agenda for the day.
9.30am: Pat McFadden, the Cabinet Office minister, takes questions in the Commons.
10am: Sadiq Khan, the London mayor, takes questions at the London assembly.
10am: Sajid Javid, the former health secretary, gives evidence to the Covid inquiry on vaccines.
After 10.30am: Lucy Powell, the leader of the Commons, makes a statement on next week’s Commons business.
11.30am: Downing Street holds a lobby briefing.
Noon: John Swinney, Scotland’s first minister, takes questions at Holyrood.
And Rachel Reeves, the chancellor, is at Davos, where she doing various speaking and media events. Graeme Wearden is there and is covering it all on the business live blog – Davos edition.
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Article by:Source: Andrew Sparrow
