Economic Sovereignty Key to Growth, Urges Dr Gerard Lyons
In a compelling warning to the new Prime Minister, leading economist Dr Gerard Lyons declared that Britain’s economic growth does not hinge on rejoining the European Union. He urged the government to seize the opportunities Brexit presents rather than succumb to pro-EU sentiments.
Dr Lyons, who previously advised Liz Truss, argued that the benefits of EU membership have been overstated by its supporters. He stressed that Labour should shift its focus towards tackling domestic challenges rather than eyeing a return to the bloc.
His comments followed Sir Keir Starmer’s pledge to “reset” relations with Europe, proposing enhancements to the Boris Johnson-era trade deal. Starmer’s agenda includes an agri-food agreement with Brussels to ease border checks, contingent on alignment with EU regulations, and a mutual recognition of professional qualifications, which might require free movement for under-25s.
Despite some Labour MPs pushing for more comprehensive re-engagement with the EU, Dr Lyons firmly stated that rejoining the EU or its single market will not resolve the UK’s growth issues. In a paper for the Centre for Policy Studies, he wrote, “The Government needs to have the confidence to stand its ground on remaining outside of EU institutions.”
Highlighting historical economic challenges, he noted that problems like the shortfall in international investment and the trade deficit predated the UK’s EU membership. He criticised the notion that rejoining the single market is a panacea for growth, labelling it a “misunderstanding of our underlying growth issues.”
Dr Lyons also took aim at previous Tory administrations for failing to develop a robust post-Brexit economic strategy, contributing to a damaging global narrative about the UK. He urged the government to leverage the trade and regulatory freedoms now available.
Sir Keir, meanwhile, has reiterated his stance against rejoining the single market or customs union, maintaining these as “red lines” in Labour’s manifesto. Dr Lyons concluded, “Britain voted to leave, and we need to take full advantage of the trade and regulatory opportunities that are now available to us.”
