Politics · United Kingdom · 36 mins ago
Treasury expected to assess options for closer UK-EU ties
Andy Burnham is pushing to reopen debate about Britain's ties with the EU, arguing that closer relations could support economic growth.
The Treasury is expected to assess the possible economic benefits of different options, although a Treasury source says officials have not yet been asked to do so.
The move recalls the Treasury's 2016 analysis of the risks of leaving the EU, whose short-term scenarios were later found not to have been fully accurate.
Critics say a new assessment could repeat the warnings of the Brexit referendum campaign, while supporters of closer ties point to possible gains from more open trade.
Bank of England Governor Andrew Bailey has said that trading more openly with the EU would benefit UK growth.
Burnham plans to use a UK-EU summit in Brussels this month to start a conversation about the country's relationship with the bloc.
The Treasury says its analysis of a new food and farming deal will be published in due course.
The Treasury is expected to assess the potential economic benefits of options for closer UK-EU ties, but a Treasury source said it had not yet been asked to prepare the analysis.
The proposed assessment is intended to inform debate about how far to change the UK's relationship with the EU.
Andy Burnham is pushing for a fresh debate, arguing that closer ties could boost economic growth.
Critics, including former Conservative leader Iain Duncan Smith, warned that the analysis could repeat the approach of the 2016 Brexit referendum campaign.
The Treasury said its analysis of a new food and farming deal would be published in due course.
- Who
- The Treasury is expected to assess options for closer UK-EU ties. Andy Burnham is advocating a fresh debate.
- What
- Officials are expected to set out potential economic benefits of different options for Britain's future relationship with the EU.
- When
- The assessment is expected, but the Treasury said it had not yet been asked to prepare it.
- Where
- The United Kingdom and the European Union.
- Why
- The analysis is intended to inform debate about closer ties; Burnham argues they could boost economic growth.
Andy Burnham and supporters of closer UK-EU ties
Critics of the proposed reset
Economic case
Andy Burnham and supporters of closer UK-EU ties
Burnham says closer ties with Europe could bring growth. Bank of England Governor Andrew Bailey said more open trade with the EU would benefit UK growth.
Critics of the proposed reset
Duncan Smith said claims about the UK's economic performance were without evidence. Shanker Singham called the reset's assumptions flawed and its calculations bogus.
Treasury analysis
Andy Burnham and supporters of closer UK-EU ties
An insider said the assessment would inform debate about how far to change the UK's relationship with the EU.
Critics of the proposed reset
Duncan Smith said the initiative sounded like Project Fear again; Andrew Griffith warned against “Project Fear in reverse”.
The Treasury published an analysis warning of economic consequences if Britain voted to leave the EU.
Burnham said reopening the Brexit debate was “the last thing we should do right now”.
Burnham met European Commission President Ursula von der Leyen on the sidelines of the United Nations General Assembly.
Burnham was due to use a UK-EU summit in Brussels to launch a conversation about Britain's relationship with the EU.
- Expected assessment
- Potential economic benefits of options for future UK-EU relations
- Treasury status
- A Treasury source said officials had not yet been asked to prepare the analysis
- Proposed venue
- UK-EU summit in Brussels
- Food and farming deal
- The PM said it would boost UK GDP by 0.4 per cent over time, equal to £12 billion a year
- 2016 Treasury forecast
- House prices could fall by up to 18 per cent and unemployment could rise by up to 820,000
What people are saying
Would the UK being able to trade more openly with its nearest neighbours, to have that trade, to have that market openness, be beneficial for growth in the UK? My view is yes, it would.
sounds like Project Fear all over again
giving us Project Fear in reverse
Quite simply, this EU reset is being sold to the British people on the back of flawed assumptions and bogus calculations.