Labour is failing to act in the national interest and putting the economy at risk by ruling out re-joining the EU, the Rejoin EU Party says.
Later today, Chancellor Rachel Reeves is reportedly set to announce billions of pounds’ worth of cuts to infrastructure projects such as road and rail to address a public-spending black hole of about £20 billion, despite Labour’s pre-election pledge to kick-start economic growth with more investment.
In an assessment of Labour’s manifesto published before this month’s general election, the Institute for Fiscal Studies think-tank said the growth outlook is uncertain, leaving Labour potentially facing the need for cuts or tax hikes to fulfil its spending pledges.
However, the Rejoin EU Party believes such measures would be unnecessary if Prime Minister Keir Starmer dropped his inexplicable refusal to contemplate re-joining the single market, the customs union and the EU.
Research shows the UK economy has lost £40bn a year in tax revenue and is almost £140bn smaller since Brexit than if the UK hadn’t left the EU – and the longer-term economic picture could be even worse due to soaring government debt, which hit 101.3% of GDP at the end of last year.
Former Conservative MEP and Rejoin EU Party supporter John Stevens said: “The hole in the public finances is larger than £20bn owing to the urgent need to reduce debt, which is now at levels that risk international markets’ confidence.”
The Rejoin EU Party estimates the £40bn in tax revenue the UK could recover annually by re-joining the EU could provide £350 million a week for the NHS (£18.2bn a year), £6bn for local and devolved government services, a 1p income-tax cut (about £6bn) and net EU contributions of about £10bn.
Rejoin EU Party chairman Andrew Smith said: “Re-joining would allow us to improve public services and reduce the tax burden.”
Party leader Brendan Donnelly said: “Starmer’s European policy has been dictated for too long by what he thought was his party’s electoral interest. Now the election is won, it’s time for the national interest and common sense to prevail. Brexit is a ball-and-chain on the British economy. It needs to be removed as soon as possible.”
