The government must grab the opportunity at the UK-EU summit to kickstart our economy

If the UK Government is serious about growth then it also needs to be serious about resetting our relationship with Europe, writes Prospect General Secretary, Mike Clancy.

If we can learn one thing from the local election results, it’s that the Government must prioritise making sure workers and businesses feel that their economic circumstances are improving. That’s why their mission to secure economic growth is so important. Low growth is the root cause of so many problems we face, from low living standards to struggling public services.

Prospect members are understandably impatient to see the benefits of growth. Thankfully for the Government, the next opportunity to kickstart the economy is just around the corner at Keir Starmer’s much anticipated UK-EU summit next week. The Summit represents a major opportunity for a new strategic alliance built on enhanced cooperation, improving on the bad deal left by the last Government.

Mike Clancy

Our current deal simply doesn’t work for anyone – businesses or workers. Firms are required to navigate a mountain of complicated rules, denting investment and harming ambition. 20,000 small firms have stopped exporting to the EU altogether, and overall export performance has lagged behind other OECD countries. High-growth sectors like our world-leading creative industries and science and technology sectors have been especially badly hit by new restrictions. New deals with India and the US are welcome steps, but they aren’t economic game-changers.

The reality is that any government serious about growth needs to be serious about resetting the relationship with Europe, and that means having the courage to take on those who want to take us backwards and refight the referendum at every turn. It also means standing firm against the populist right’s attempts to shape one of our most important economic relationships, especially at a time when global economic uncertainty means Britain and our workers could be left exposed and vulnerable.

We must not get stuck in a vicious circle where the government backs away from growth policies because of the threat of Reform, or the premature commitment of the Conservatives to undo anything from the reset that does not fit their Brexit driven economic straight jacket. This has to be confronted as it is contributing to the economic stagnation that fuels the populist right in the first place.

So, government needs to be bold in the upcoming renegotiation, focussing on the art of the possible, and resisting the temptation for too much focus on so-called ‘red lines’. Talk of a new “strategic partnership”, as well as potential movement on a Youth Mobility Scheme, is an encouraging start. But we must go further, solving the issues in our aviation sector, unlocking greater environmental collaboration, and tackling shared security challenges. There are also important issues around rights at work that need to be addressed so that workers can feel the benefits of a new deal. Prospect has long been lobbying the government to resolve restriction of movement for touring professionals in the creative industries, which has been so damaging to members of our Bectu sector and will continue to do so as we approach renegotiations.

Prospect wants to see ongoing dynamic alignment of employment protections and regulations to protect workers rights. This means that UK workers would not be left behind the rest of Europe when workers’ rights improve in the EU.
Just as the Government needs to be bold, so too do the rest of civil society, especially businesses and trade unions. As both the General Secretary at Prospect Union, and the Chair of the Domestic Advisory Group, I am clear that an ambitious reset with Europe is needed that benefits workers, and in turn boosts our economy.

There has been too much talk of red lines, when what we must find is common ground and mutual benefit. The Government cannot allow this renegotiation to be driven by those intent on re-running the arguments of recent years, and those shouting from the sidelines about betrayal.

Instead, it must prioritise pursuing a new deal, delivering for workers and for growth, and also resetting the UK’s relationship with the EU. Because yes the detail of the deal matters, but also it is about showing the UK’s intent to work together with our closest neighbours in the decade to come.

Mike Clancy is General Secretary of Prospect and Chair of the UK-EU Trade and Cooperation Agreement Domestic Advisory Group.