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‘We can’t afford it!’ Pat McFadden grilled on Andy Burnham’s £21billion EU reset
Pat McFadden defended the Government’s plans to improve relations with the EU after presenter Camilla Tominey challenged him over a reported £21 billion cost. He said closer cooperation could support trade, reduce business costs and strengthen defence and security ties.
McFadden said the Office for Budget Responsibility had estimated that leaving the EU would reduce long-term GDP by 0.4 per cent, arguing that this represented a substantial economic cost. He said the eventual shape of the relationship was uncertain, but discussions could also cover cooperation on illegal migration and were expected at a Friday summit.
In short
- McFadden says closer EU ties could help trade and security.
- Tominey challenged him over a reported £21 billion cost.
- He cited an OBR estimate of a 0.4 per cent long-term GDP impact.
Steelman: both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
Closer cooperation with the EU could reduce trade barriers and business costs while strengthening defence, security and efforts to address illegal migration. Supporters argue that the reported £21 billion should be weighed against the OBR estimate that leaving the EU will reduce long-term GDP by 0.4 per cent, and that a reset could help recover some of that economic loss.
The case against
A reported £21 billion cost raises a legitimate question about whether closer ties would deliver benefits large enough to justify the expense, particularly when the details and eventual shape of the relationship remain uncertain. Critics may argue that public money should not be committed before the Government shows how the figure was calculated, what specific gains are expected and how those gains would be measured.
Explained simply
The UK left the European Union in 2020, ending its membership of the single market and customs union. Since then, businesses have faced new rules and checks when trading with EU countries, while the UK and the EU have continued to work together in some areas.
Pat McFadden is a senior minister in the UK Government, and Andy Burnham is the mayor of Greater Manchester. A closer UK–EU relationship could involve changes to trade and cooperation on defence, security or migration; its terms and costs would depend on what both sides agree.
The Office for Budget Responsibility is the UK’s independent public finances watchdog. Its estimate that Brexit could reduce long-term economic output is one part of the debate over whether closer ties could bring economic benefits, and how those might compare with any costs.
Europe Government Politics UK World