National Security Strategy

Sarah Olney Excerpts

Tuesday 24th June 2025 Commons Chamber

[Mr Deputy Speaker (Sir Roger Gale)]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

The Liberal Democrats welcome the publication of the Government’s national security strategy, because we recognise that we are living in a world that is less stable and more insecure now than at any time since the end of the cold war. Putin’s forces continue to wage their war in Ukraine, the middle east is teetering on the precipice of a fully-fledged regional war, and the actions of the United States under an unreliable President Trump are putting an enormous strain on the post-war settlement from which we have benefited so much.

The nature of the threats we face continues to evolve, as has become immensely clear to millions of people across the country with the recent cyber-attacks on Marks and Spencer and the Co-op, and in other countries we have seen attempts by authoritarian states to meddle in free and fair elections. That is why we welcome so much of what is contained in the strategy. It is also why the Liberal Democrats have welcomed the Government’s decision to increase defence spending to 2.5% of GDP, although we have urged Ministers to go further.

Given the new NATO target of 5% of GDP, will the Government now urgently convene cross-party talks to establish a consensus on how to get there? We need to show our adversaries we are serious about that commitment. The strategy also has a welcome focus on resilience, something especially important given not just the scale of the threat we face but its varied nature. Will the Minister look at steps taken by our allies such as Estonia to inform their populations about how to deal with those threats, should they arise? To reflect the threat posed to our democracy by hostile actors, will he make protecting our democracy a national security priority? I also note the importance that the review places on sovereign independent capabilities. Is that an admission from the Government that, under President Trump, the United States is no longer a reliable ally? Will the assessment be carried over into defence procurement, where we look to maintain an inextricably close bond with the United States?

[Pat McFadden]

I thank the hon. Lady for her comments. Let me try to go through some of the issues she raised. She is absolutely right to draw attention to the importance of the recent cyber-attacks on Marks and Spencer, the Co-op and the legal aid system. They show what both state and non-state actors can do, and they show how important it is that we strengthen our cyber-capabilities and our cyber-defences as much as possible. In terms of being serious, the actions we have taken so far since the election show that we are serious. We have a plan in place to increase defence spending to 2.5% of GDP this Parliament. It took a very difficult decision to do that, but at the spending review we showed exactly how that would be paid for. On her reference to the United States, it remains a strong, reliable, deep and important ally for the United Kingdom. The relationship between us helps to protect the British people every day.

Oral Answers to Questions

Sarah Olney Excerpts

Thursday 5th June 2025 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

I am going to resist all attempts to involve me in a love-in. However, the Liberal Democrats very much welcome the progress that has been made in the UK-EU reset. We are particularly pleased to see the Prime Minister listen to our long-standing calls on a defence fund, on a veterinary scheme and on youth mobility, or youth experience—whatever we are calling it now. The Minister knows that I am going to continue to press him on the matter. We welcome the announcement, but we need more certainty of the scheme’s scope and timescales. I am thinking particularly of those young people who want to start making plans for their future, perhaps not for this summer but maybe for next. Will the youth experience scheme be open to them? Can they start to plan for experiences in the EU? May I press the Minister for more detail on the timeline for introducing the scheme?

[Nick Thomas-Symonds]

I am grateful to the hon. Lady for her support. In fairness, she has been supportive of the youth experience scheme throughout. Having secured the agreement at the summit, we will obviously move now into a different phase of the negotiations, looking at implementation, whether that is in terms of the link with the emissions trading systems, the sanitary and phytosanitary agreement or the youth experience scheme. We obviously want to move forward as quickly as we can with implementation.

--- Later in debate ---

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

Fellow right hon. and hon. Members will have noticed that some political parties have begun accepting cryptocurrency donations—far be it from me to suggest that this might be an attempt to dodge the transparency requirements for donations. Does the Minister join me in welcoming the Electoral Commission’s clear guidance that donations that do not come from a permissible or identifiable source must be returned, and will he be speaking with ministerial colleagues in other Departments about making sure that the forthcoming elections Bill ensures that any political donation involving crypto is fully transparent and in line with our laws?

[Pat McFadden]

It is absolutely right that as finance evolves, so too must the rules we have to ensure transparency and probity in elections. Therefore, the rules regarding the source of funding and the bona fide character of the donors must apply whatever currency is involved.

EU-UK Summit

Sarah Olney Excerpts

Thursday 22nd May 2025 Westminster Hall

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to serve under your chairmanship, Mr Vickers. I thank the Backbench Business Committee for securing time for this debate.

The Liberal Democrats were clear about our ambitions for the summit. We repeatedly pushed the Government for a youth mobility scheme between the UK and the EU, we called for a defence and security pact with our European neighbours, and crucially we urged the Government to be much bolder on trade and the economy by seeking a bespoke customs union with the EU.

The Brexit deal was a betrayal. The leave campaign promised that businesses would be able to trade more freely, that farmers would benefit from a new approach to their payments, and that fishing communities would thrive once again. Instead, businesses are caught up in red tape, farmers have seen their payments slashed, and the deal on fishing was a total sell-out. In fact, it has been amusing to hear Members berate the Government this week for an extension on exactly the same terms as the deal that Boris Johnson agreed.

[James McMurdock]

Would the hon. Lady clarify whether she believes the deal is a good thing for fishing or not? She seems to be bashing it, but also remarking on the 12-year extension.

[Sarah Olney]

I am assuming that the Conservative Government were happy with the terms that they were able to negotiate, so what is the problem with extending it? I simply reflect on the comments of the hon. Member for Hackney South and Shoreditch (Dame Meg Hillier), who is no longer in her place: the new agreement enables so many more opportunities for exporting to the EU, and that is something that will be very much welcomed by many of our industries, not least our fisheries.

[Sir Bernard Jenkin]

It is quite extraordinary that the hon. Lady does not understand the different between a bitter concession that was forced out of the previous Government, wisely or unwisely, that we deeply resented and was time-limited to five years, and an extension of 12 years, which is at least 2.2 times worse, for something freely given away. I remember when the Labour party used to deride the common fisheries policy as an ecological and social disaster. Now it is embracing it, and so is the hon. Lady. I can only assume that she does not represent any fishermen in her constituency.

[Sarah Olney]

I am so sorry to hear about the resentment that the hon. Gentleman feels at the deal that his Government negotiated. However, he must accept that that is the basis on which the new deal has been struck. That was the starting point for the negotiation. I am sorry to hear it was so terrible, but that was the starting point.

The betrayal by those who advocated for the opportunities of Brexit did not end there. Of course, it was not just the Conservatives, but the leader of the Reform party. The public were promised that immigration would fall. Instead, it has risen to record levels. Far from the economic liberation that the Brexiteers pledged leaving the EU would bring, the OBR has estimated that barriers to trade with Europe will reduce the output of our economy by 4% over 15 years.

More than that, we know how much public opinion has shifted on this issue, as many have come to realise that the promises of the leave campaign were so detached from reality. The leave campaign promised £350 million a week to the NHS, but the truth has become painfully clear. The hon. Member for Boston and Skegness (Richard Tice) gave the game away in an interview in December. Speaking about America, he said that

“it’s got cheap energy, because it ‘drill baby drills’, they’ve got lower regulations and they’ve got lower taxes.”

That is the real Brexit agenda: environmental vandalism, stripping away regulations that keep us safe and cutting taxes for the rich. I hope Members will acknowledge the extent to which that campaign misled the public.

[Richard Tice]

We have heard lots about reducing bills, but the hon. Lady has just confirmed that the greatest bill, which affects so much, is the cost of energy, and America enjoys energy prices that are a third of ours because it uses its own domestic energy treasure.

[Sarah Olney]

I am so glad that the hon. Gentleman raised that point, because what he will need to accept in time is that the way forward for cheaper electricity bills in this country is to invest in renewable energy. That, more than anything else, is what will reduce the cost of energy for consumers and businesses. The more renewable energy we have, including from wind farms off the east coast, the quicker we can get to reduced bills for our constituents.

The Liberal Democrats welcome many parts of the new agreement. It marks a distinct and positive step towards reversing the damage caused by the Conservatives’ pitiful negotiations with Europe, and I welcome the progress on those issues. I am sure that the hon. Member for Mid Buckinghamshire (Greg Smith) will welcome the fact that the Liberal Democrats would echo his call for a return of the European Scrutiny Committee; I agree with his comments on that.

According to a recent study from the London School of Economics, the Brexit deal reduced goods exports by £27 billion, or 6.4%, in 2022. Smaller firms were the most affected. The Government say that the new deal will add £9 billion to the UK economy, and we welcome the decisive step to address the disastrous damage that Brexit brought to our economy.

However, ahead of the last general election the Labour party drew itself some self-defeating red lines. The timidity in negotiations with Europe seems to be driven more by a fear of the Reform party than a commitment to bring forward proposals that would benefit the British people. Joining a new customs union with the EU is one such line. However, they are acting less like lines and more like chains weighing down on UK growth and prosperity.

[Sadik Al-Hassan]

It seems that the deal is both too much and too little. Perhaps if it were porridge, it would be just right. Does the hon. Lady agree?

[Sarah Olney]

I disagree; it is too little. Whatever the Government have said, it is too little for the Liberal Democrats. We would have gone further, although I certainly welcome the progress that has been made.

Times change. We know that joining a customs union would unlock vital new opportunities for British businesses and boost our economy in a meaningful way. In fact, even a deep alignment deal would boost growth by 2.2%, which could result in a £25 billion windfall for the public purse, and that would fall short of the benefits that a customs union would provide.

In the years 2020 to 2024, the net change in the number of small and medium-sized enterprises in the UK decreased by 25,495. Since 2019, UK businesses have also had an average closure rate of over 12%, outstripping the rate of new businesses starting up. I have heard about the challenges that businesses have experienced due to Brexit red tape, which is a direct impact of the Conservatives’ pitiful negotiation. Successful high street businesses that have operated for four decades tell me that the last 18 months have been the hardest period that they have experienced, due to the exponential increase in import duties and registration fees.

I have also been told time and again by small businesses in my constituency about the damage of Brexit. Far from seeing the freedom promised by the Brexiteers, we have instead seen an exponential increase in bureaucracy, resulting in business-owners spending many arduous hours sorting through additional paperwork, including complex regulatory differences for animal products such as wool.

Those are not isolated cases. Over a third of surveyed UK businesses have reported extra costs that are directly related to changes in export regulations due to the end of the EU transition period. We are glad that some of these issues will be addressed with the new trade agreement. However, the Government must be bolder. We will continue to urge them to be much more ambitious with regard to trade and the economy, and we will ask them to use this agreement as a first step in seeking a new customs union with the EU.

While we know that the long-term wellbeing of the UK is about being back in the heart of Europe, that requires strengthened trading agreements and a customs union. Closer ties with Europe are also key to our national security. We have long argued for closer alliances on defence in the face of Putin’s imperialism and Trump’s unpredictability, and we welcome the fact that the Government have committed to a defence agreement. However, I hope that the Minister will agree that that must be just the beginning, and that we must be far more ambitious in strengthening our economic and security ties with our nearest neighbours.

The Liberal Democrats have also repeatedly pushed the Government for a youth mobility scheme between the UK and the EU, so we are glad that the Government have seen sense and will look to introduce a similar scheme, whatever it might be called. We know that a youth mobility scheme is good for business, good for education and good for opportunity. Polling shows that two thirds of the UK population are in favour of a youth mobility scheme.

Red tape at the UK-EU border has prevented schools and children across the country from taking part in overseas educational trips. I think many Members would agree that such trips are a memorable and enriching part of a school career; however, according to the School Travel Forum, between 2019 and 2023 such opportunities reduced in number by 30%.

There are so many reasons to welcome and champion a new programme for young people. Given that the scheme the Government have indicated they will support would mirror existing capped arrangements that the UK already has with 13 countries, including Australia, New Zealand and Canada, I urge them to move with more urgency and to bring forward details and a timeframe for the implementation of such a scheme.

The Minister and I both know that a youth mobility scheme is not a return to freedom of movement. Will he confirm that the Government, who have shown good intention in introducing such a scheme, will not be sidetracked by scaremongering from the Conservative party and the Reform party, and that he will give his full commitment to the introduction of the scheme?

When I asked the Prime Minister on Tuesday for a timeline, he assured me that the Government will move quickly. However, given the thousands of students who hope to travel to Europe to study, the thousands of small hospitality businesses in this country that are struggling to recruit short-term staff and the musicians burdened with huge levels of bureaucratic paperwork, I reiterate my call here today. Will the Minister set out a timeline for the introduction of such a scheme, which will ease travel?

[Sir John Hayes]

I believe in British jobs for British young people. Should the hospitality industry not first be looking to employ the very large number of young British people who are not in education, work or training?

[Sarah Olney]

That is an excellent point; the issue is that the hospitality industry frequently seeks to recruit people for short-term work, which is often seasonal. Those jobs are not the kind of jobs that young people who are looking to build a career are necessarily interested in taking up, because come September or October they would be out of work and would have to look for something else. That is the barrier to young people in this country taking up some of those roles. There is no doubt that those industries are experiencing huge shortages of workers and a youth mobility scheme could go some way towards addressing that, thereby helping to ensure the viability of businesses in those industries and keeping them going, and keeping the jobs that they provide in our local communities.

Over the last five years, the empty promises spouted by the leave campaign have become increasingly clear as the damage caused by Brexit has unfolded. The Liberal Democrats welcome this step towards reversing some of the damage caused by the last Conservative Government, and we will continue to urge the current Government to go further and to be bolder in their ambitions for our country.

UK-EU Summit

Sarah Olney Excerpts

Tuesday 20th May 2025 Commons Chamber

[The Prime Minister]

Under the Conservatives’ deal, shellfish was locked out, but it can now be sold back into the market, which is hugely important to places such as Cornwall. That is why their response to this is so uncertain and, if I may say so, un-Tory.

[Sarah Olney (Richmond Park) (LD)]

On six separate occasions since the beginning of the year I have asked the Paymaster General about plans for a youth mobility scheme, and every single time he has told me that Labour has no plans. I realise that I was in error and should have asked about a youth experience scheme, but let me ask the Prime Minister now whether he has a timescale for when such a scheme can be put into operation and we can start to see the benefits that Liberal Democrats know it can bring to young people here in the UK and across the EU.

[The Prime Minister]

We have moved apace to get this far, but we now need to move apace to implement what we agreed yesterday, so we will be doing that, and we will update the House as we do so.

Infected Blood Inquiry: Government Response

Sarah Olney Excerpts

Wednesday 14th May 2025 Commons Chamber

[Madam Deputy Speaker (Judith Cummins)]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

I thank the Paymaster General for advance sight of his statement. The infected blood scandal is a harrowing story of people being failed not only by the medical professionals who treated them, but by the NHS, which should have been responsible for the safety of their treatment, and by a series of Governments who should have prevented such horror from ever taking place. As the Minister knows, I and my Liberal Democrat colleagues welcome the introduction of the infected blood compensation scheme. The Government were right to introduce the scheme at the start of the Parliament, and I am glad to hear the Minister say that the Infected Blood Compensation Authority is scaling up its operation. However, we are alarmed that the roll-out of the scheme has been far too slow, leaving victims without the justice that they deserve.

Victims and their families have been waiting for decades for answers and recognition of the suffering they endured. So far, only 106 people have received payments from IBCA, and 54 others have received offers. Compensation payouts are not due to conclude until 2029, and that date would rely on a rapid increase in the rate of payments. We are deeply concerned by the speed at which victims are receiving their long-overdue compensation, and I am glad that last week’s hearings looked into the adequacy and timeliness of the Government’s response. To echo the words of Sir Brian Langstaff,

“People infected and affected do not have time on their side.”

To that end, and to provide confidence to victims and their families, can the Paymaster General clarify what deadline he has for the implementation of the inquiry’s recommendations? Moreover, what further steps is he taking to increase the speed at which payments are being made, and can he confirm when all victims can expect to have received their long-overdue compensation? What more can be done to help those who need to provide proof of infection but whose medical records have been destroyed?

It is crucial that there are mechanisms in place to ensure that the concerns of charities, organisations and the affected individuals are heard. Supporting the work of those vital organisations and engaging with them to understand exactly the needs of those affected is crucial.

The Liberal Democrats are backing the survivors’ call for a duty of candour on all public officials. As such, I am glad to hear the sentiment behind the Government’s response to recommendation 5, but when will the Government bring forward proposals to that effect so that such a scandal is never repeated? Can the Paymaster General clarify why there has been a delay, given that relevant legislation was originally meant to be published in April?

[Nick Thomas-Symonds]

First, with regard to the current position on payments, just over £96 million has been paid, and IBCA has invited 677 claimants to begin the process. I want to be clear about the 2029 date to which the hon. Lady referred. It is correct to say that there are, as I regard them, backstop dates of 2027 for the infected and 2029 for the affected, but that is what they are—backstops. They are not targets. The target is to make the payments as soon as possible.

The hon. Lady asked about evidence, which I dealt with in response to the question from my hon. Friend the Member for Mid Cheshire (Andrew Cooper). She refers to a situation where someone’s medical evidence has for whatever reason been destroyed, and that is precisely the kind of situation where we expect IBCA to take a sympathetic approach.

On the duty of candour, the Government remain committed to bringing in duty of candour legislation, but it is important that we get it right and ensure that the legislation will actually achieve the shared objective that I am sure the whole House has of trying to prevent this type of scandal from happening again. We must ensure that there are no unintended consequences, so it is because we want to get the legislation right that we are taking a bit more time.

EU Trading Relationship

Sarah Olney Excerpts

Thursday 24th April 2025 Westminster Hall

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to serve under your chairmanship, Sir Jeremy. I congratulate the hon. Member for Welwyn Hatfield (Andrew Lewin) on his work in securing this debate. We have seen over the past few months the extent to which the current US Administration is no longer a reliable ally. We can see the extraordinary damage being caused by the implementation of Trump’s tariffs on trading relationships around the world. With the increasingly unpredictable and aggressive signals coming from across the Atlantic, this must be the moment to stand firmly with our European neighbours for our national security and economic stability, as well as to strengthen our trading relationships.

The UK-EU summit next month in London, hosted by the Prime Minister, will be an opportunity that must be seized for us to move on from the warm words of pragmatism that we have heard from the Government, but which are no longer good enough. We must move faster, and the Government must commit to serious action to rebuild our relationship with Europe.

While we know that the long-term wellbeing of the UK means being back in the heart of Europe, that requires strengthened trading agreements and a customs union. Closer ties with Europe are also key to our national security. We are glad that there are serious indications that the Government will commit to a defence agreement with Europe, but that must be just the beginning.

There are broader partnerships with our European neighbours, which the Liberal Democrats will continue to call for, that will be advantageous to British businesses. We know that a youth mobility deal would be good for our economy, especially our tourism and hospitality sectors, while providing young British people with the opportunity to work and study abroad. That is exactly the kind of pragmatic step that we hope the Government will take at the upcoming summit.

Having spent the last five years grappling with the bureaucracy of Brexit and with increased trading costs, many business owners across the country will now be deeply concerned by the additional challenges to businesses coming from Washington. The returning Trump Administration has fundamentally changed trading relations globally, which has created an obvious moment for us to take action to establish closer trading relationships with our European neighbours.

The EU is our closest neighbour and our largest trading partner, but the botched Brexit deal has been a complete disaster for this country, especially for small businesses, which are held back by reams of red tape and new barriers to trade, costing our economy billions in lost exports. I urge the Government to acknowledge the damage that the Conservatives’ Brexit regulation has done and continues to do to not just to individual businesses but to the economy as a whole, and to take the sensible step of negotiating a new UK-EU customs union to ease the pressure that so many businesses are under.

Oral Answers to Questions

Sarah Olney Excerpts

Thursday 24th April 2025 Commons Chamber

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

I have listened with a great deal of interest to what the right hon. Gentleman has had to say on the Government’s plans to make Whitehall more efficient and to make significant reforms to service delivery, and we on these Benches very much welcome the intention behind that statement. However, announcements have been made in the media about the intention to cut 2,100 jobs in the Cabinet Office and reduce the Department’s workforce by a third. Why have we not had a statement in this House about those job cuts specifically, and when will Members of Parliament get an opportunity to scrutinise exactly what that means for their constituents and their expectations about service delivery?

[Pat McFadden]

I work very closely with the Chancellor of the Exchequer and the Treasury on this matter. The truth is, civil service headcount grew by more than 100,000 in the years the Opposition was in power. We believe that some of that can be explained by the repatriation of powers after Brexit, but some of it can be looked at in terms of efficiencies, which is what we are doing. By reducing the Government’s overhead, we can devote the resources to where they are really needed: in frontline public services. After such growth presided over by the Conservatives over the past decade, we believe that can be done.

--- Later in debate ---

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

Warm words about a reset in UK-EU relations are no longer enough. The summit that will take place in London on 19 May is an opportunity for real action. Will the Minister take the opportunity that the summit presents to commit to bringing in a UK-EU youth mobility scheme that will boost economic growth and enhance chances for young people in our country and across the EU?

[Nick Thomas-Symonds]

A youth mobility scheme is not part of our plans. We have always said that we will listen to sensible EU proposals, but we will not go back to freedom of movement. Where I do agree with the hon. Lady is on concrete proposals and concrete progress on 19 May. We are looking to secure a new partnership with the EU that will make our country safer, more secure and more prosperous.

European Union: UK Membership

Sarah Olney Excerpts

Monday 24th March 2025 Westminster Hall

[Sarah Olney (Richmond Park) (LD)]

It is a pleasure to serve under your chairmanship, Sir John. I begin by thanking the hon. Member for Colne Valley (Paul Davies) for opening this excellent debate. I also extend my thanks to Mr McMaster for initiating the petition, as well as the 130,000 members of the public who signed it. Their desire for the UK to be once again at the heart of Europe has today brought together Members from across the House.

We can see from the number of Liberal Democrat contributions that this subject is very important to our party. My hon. Friend the Member for Tunbridge Wells (Mike Martin) talked about the impact on defence, and my hon. Friend the Member for Stratford-on-Avon (Manuela Perteghella) talked about higher education. My hon. Friend the Member for Lewes (James MacCleary) spoke about youth mobility and the Pan-Euro-Mediterranean convention, while my hon. Friend the Member for Brecon, Radnor and Cwm Tawe (David Chadwick) talked about the impact on farmers.

My hon. Friend the Member for Bath (Wera Hobhouse) gave a very personal reflection on her own journey, for which I am grateful, and my hon. Friend the Member for South Devon (Caroline Voaden) talked about fishing. My hon. Friend the Member for Wokingham (Clive Jones) spoke eloquently about barriers to trade. My hon. Friend the Member for Wimbledon (Mr Kohler) gave a polemic, which I really enjoyed, and my hon. Friend the Member for Melksham and Devizes (Brian Mathew) made a particularly interesting contribution about health co-operation, for which I thank him.

There were many contributions from Members representing other parties, and I particularly want to thank the hon. Member for Walthamstow (Ms Creasy) for her striking speech and metaphors. I have to say that a night out in Walthamstow sounds somewhat messier than a night out in Richmond, but I am very grateful for her contribution. Members from other parties mentioned impacts on tourism, particularly touring musicians, language schools and international aid, and the hon. Member for Banbury (Sean Woodcock) had some very interesting things to say about supply chains.

It would have been lovely to have heard from members of the Tory party, although we look forward to the speech from the hon. Member for Fylde (Mr Snowden). It seems extraordinary that despite how much time this issue has taken up in the Chamber and across the country over so many years, not a single member of the Conservative party—apart from the poor hon. Member for Fylde, who was not even a Member at the time—is here to defend what it did while in government.

The Liberal Democrats are proud to be the country’s most pro-European party, and we have been vocal in our support for the Government’s warm words on a reset and a rebuilding of our relationship with Europe after the disaster of the botched Brexit deal under the last Conservative Government. We are, however, concerned that those warm words are not leading to action. The wholly inadequate deal with the EU that was negotiated by the previous Government has done enormous damage to British businesses. There have been soaring export costs, increased workforce shortages and reams of red tape creating huge barriers to growth.

Having spent the past five years grappling with the bureaucracy of Brexit and increased trading costs, many business owners across the country will now be deeply concerned by the additional challenges to businesses that are coming from Washington. The returning Trump Administration have fundamentally changed trading relations globally with the introduction of high tariffs, which we already have on steel and are being threatened in other areas, too. It is vital that the UK leads on the world stage again, standing up for our interests by working closely with other countries. Most importantly, we must work with our European neighbours, which is why I am so glad to be speaking alongside colleagues from all parties to advocate for a constructive rebuilding of our relationship with Europe.

The new global security and geopolitical landscape has shifted since the Brexit vote of 2016. With an aggressive Russia, an assertive China and the return of a Trump Administration in the US, the case for closer cross-channel ties with the EU is made far more urgently. The Government are rightly looking to build closer defence and security agreements with Europe, and I am glad that they have embarked on those vital negotiations.

However, recent reports suggest that despite our being part of the European “coalition of the willing”, UK arms companies will not be included in a new €150 billion commitment to an increase of defence capabilities, unless the Government agree to defence and security partnerships with Brussels. We know that European officials are insisting that those defence agreements come in tandem with other partnerships, including a youth mobility scheme, and I urge the Government to take the logical step of agreeing to such a scheme, which is a clear win-win for everyone.

As the Minister knows, the Liberal Democrats believe that a key and pragmatic step in our rebuilding is the introduction of a youth mobility scheme between the UK and the EU. Despite recent press reports that the Government plan to introduce such a scheme, and the encouraging words from the Prime Minister himself just last week in response to a question about that topic asked by my hon. Friend the Member for Epsom and Ewell (Helen Maguire), it has been deeply disappointing to hear the Home Secretary and other Ministers rule it out, despite knowing that an agreement on youth mobility would not lead to freedom of movement.

A youth mobility deal would be good for our economy, especially our tourism and hospitality sectors, and give young British people the opportunity to work and study abroad. It would be a win-win—and not just that, because it is what the British public want. Polling shows that two thirds of the UK population are in favour of a youth mobility scheme, and the scheduling of today’s debate is further proof of the appetite across the country for closer ties with Europe. Introducing a youth mobility scheme between the EU and UK would send a clear message that this country is serious about supporting our young people and backing British business with the labour force that it needs to grow.

The EU is clear that it would welcome a youth mobility scheme. It has signalled that agreeing to such a scheme will be a necessary step before broader partnerships can be established, including on defence. I urge the Government to embark on negotiations so that we expand opportunities for young people across the country, and to acknowledge the broader benefits that the scheme would provide. Will the Minister agree that such a scheme would not cross any of the Government’s red lines regarding a European reset?

More broadly, as the Minister will be aware, the previous Government accepted an agreement to allow EU member state nationals visiting the UK to benefit from a six-month visa waiver, although UK nationals are limited to 90-day visa waivers when visiting the Schengen area. That is a further example of the appalling deal that the Conservative Government secured. Has the Minister considered redressing this imbalance and securing a fair, reciprocal and inclusive mobility agreement with the EU that provides a six-month visa waiver in both directions?

The EU is our closest neighbour and largest trading partner. I sense that the Minister knows that we have to get on with repairing the trading relationship that was so badly damaged under the former Conservative Government. The botched Brexit deal has been a complete disaster for our country, especially for small businesses, which are held back by reams of red tape and new barriers to trade that cost our economy billions in lost exports.

The dismal picture of the financial impact of our withdrawal from the EU has become increasingly clear. A recent survey of 10,000 UK businesses found that 33.5% of currently trading enterprises experienced extra costs that were directly related to changes in export regulations due to the end of the EU transition period. Since 2019, global British goods exports have increased by just 0.3% a year, compared with an OECD average of 4.2%. Small business exports have suffered even more significantly, dropping by 30%, and 20,000 small firms have stopped all exports to the EU. A recent study found that goods exports had fallen by 6.4% since the trade deal came into force in 2021.

I urge the Government to acknowledge the damage that our current trading relationship with Europe continues to do, not just to individual businesses but to the economy as a whole, and to take the sensible step of negotiating a new UK-EU customs union to ease the pressure that so many businesses are under. In the past, the Minister talked of pragmatic negotiations. Surely it would be pragmatic to drop the Government’s red lines and agree to a new UK-EU customs union. That would be the single biggest step that the Government could take to unlock growth. The Liberal Democrats will continue to call on the Government to do the right thing for our businesses.

The Government have made it clear that their No. 1 priority is economic growth, yet any proposal that might involve our European neighbours while contributing to boosting growth is dismissed. A new UK-EU customs union is a pragmatic and mutually beneficial proposal that would help the UK economy and labour market in the long term, stimulating the growth that the country so clearly needs.

The changes to the immigration system implemented in April 2024, which increased the minimum salary threshold for skilled worker visas, shrank the talent pool that hospitality businesses can recruit from and contributed to greater staff shortages in that sector. Around three quarters of the hospitality workforce is filled by UK citizens, but international talent has always been attracted to working in the UK because of our pedigree for hospitality and developing careers. In a 2024 survey of 1,650 employers from across a range of sectors, including hospitality, adult social care and manufacturing, 49% said that a reduction in the availability of migrant workers was one of the main causes of hard-to-fill vacancies.

The Government’s decisions in the Budget added to the overall tax burden on hospitality businesses, many of which are considering whether they remain viable, so we must provide the tools that hospitality needs to help businesses to grow and to boost the wider economy, including access to global talent. I have heard from stakeholders in the hospitality sector, including business owners and supply chain managers, who would welcome proposals that would bring the sector more stability, which would allow them to make longer-term plans within a more predictable and robust regulatory framework.

The Government have been clear on their red lines—no single market, customs union or free movement of people—but I am glad to have heard cross-party support for serious negotiations with our European neighbours. Liberal Democrats will continue to advocate for a fundamental reset of our relations with the EU. That means taking steps to fix the trading relationship, in line with our four-stage road map: first, resolving the low-hanging fruit, such as youth mobility; secondly, taking steps such as establishing a veterinary agreement and achieving mutual recognition of professional qualifications; and then establishing a UK-EU customs union, which would set us back on the path to the single market. In the longer term, our ambition remains that of seeing the UK at the heart of the EU once more.

Rebuilding our relationship with Europe is a fundamental part of making Britain more secure and prosperous. Given the threat of tariffs from the new Trump Administration, it has never been more important for our Government to break down the barriers to trade that were erected under the previous Conservative Government. By repairing our relationship with the EU, we will be able to deal with that unreliable and unpredictable actor in the White House from a position of strength. Does not the Minister agree that taking decisive steps, such as negotiating a new UK-EU customs union, establishing a youth mobility scheme and reducing red tape for high-street businesses, is the best way to achieve the growth that this Government are so focused on and that our country so desperately needs?

[Sir John Hayes (in the Chair)]

Before I call our final two speakers, may I thank colleagues for their brevity, particularly Clive, Paul and Brian—and Jim, whom I did not give much choice in the matter? That has allowed everyone to get in, and while I am in the Chair, I hope that I will ensure that everyone gets their chance to have their say.

Also, may I ask the Minister to leave Paul a couple of seconds at the end to say a final word? I also ask the shadow Minister please to leave the Minister plenty of time to respond to the debate.

Oral Answers to Questions

Sarah Olney Excerpts

Thursday 6th March 2025 Commons Chamber

[Sarah Olney (Richmond Park) (LD)]

The US Defence Secretary, Pete Hegseth, has this week announced the stepping back of US counter-cyber measures against Russia. This incredibly concerning decision by the Americans threatens not only their cyber-security, but our own. The Russian Government have been accused of orchestrating a widespread campaign of interference and disinformation that seeks to undermine the global order. In 2020, the UK Parliament�s Intelligence and Security Committee stated that the Government had underestimated the response required to the Russian threat. Can the Minister tell us what further measures the Government are taking to protect British democracy, and will he commit to publishing the full, unredacted Russia report?

[Pat McFadden]

We are fully alive to the threat posed by Russian cyber-attacks. I mentioned in my previous answer the threat from state and non-state actors, and there is sometimes a threat from state-backed actors against our public infrastructure. We will work as hard as possible to protect our institutions against such attacks, and our intelligence co-operation with the United States remains a very important part of our defences.

--- Later in debate ---

[Mr Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

Two weeks ago, I was glad to read reports in The Times that the Government intend to introduce a youth mobility scheme between the UK and the EU. That would be good for our economy, while providing young British people with the opportunity to work and study abroad. That is what the British public want, with new polling showing that more than two thirds of the UK population are in favour of such a scheme, but last week the Home Secretary ruled it out. Will the Minister do the right thing, remove the unnecessary barriers facing young people in the UK and commit to negotiations on an EU-UK youth mobility scheme?

[Nick Thomas-Symonds]

The position of the Government is unchanged; we have no plans for a youth mobility scheme. We will, of course, always listen to sensible proposals from the EU, but they have to be within our red lines of no return to freedom of movement, no return to the single market and no return to the customs union.

UK-EU Relations

Sarah Olney Excerpts

Thursday 6th February 2025 Commons Chamber

[Madam Deputy Speaker]

I call the Liberal Democrat spokesperson.

[Sarah Olney (Richmond Park) (LD)]

I thank the Minister for advance sight of his statement. I welcome much of the statement’s content—that the Government are serious in their commitment to resetting our broken relationship with the European Union—but what the Liberal Democrats want is action. The European Union is our closest neighbour and largest trading partner. I sense that the Minister knows that we have to get on with repairing the trading relationship which was so badly damaged under the former Conservative Government, so please let us get on and do it. The botched Brexit deal has been a complete disaster for our country, especially for small businesses, which have been held back by reams of red tape and new barriers to trade, costing our economy billions in lost exports. The Minister talks of pragmatic negotiation. Surely what is pragmatic is to drop the Government’s red lines and agree a new UK-EU customs union. It would be the single biggest step that the Government could take to unlock growth, and I cannot think of anything more pragmatic. Liberal Democrats will continue to call on the Government to do the right thing.

We are also disappointed by the Home Secretary’s comments at the weekend on ruling out a youth mobility scheme. Does that represent the Government’s stance? A youth mobility deal would be good for our economy, especially our tourism and hospitality sectors, while providing young British people with the opportunity to work and study abroad. It would be a win-win. Not only that, it is what the British public want. New polling shows that two thirds of the UK population are in favour of such a scheme. Does the Minister not agree that introducing a youth mobility scheme is exactly the kind of pragmatic negotiation that the Government should be prioritising?

[Nick Thomas-Symonds]

I am grateful as always for the contribution of the hon. Lady; we had a fine debate in Westminster Hall last week. All I would say to her about speed, though, is that this Government are acting on the red lines in our manifesto around the single market, customs union and freedom of movement, on which we were elected and which delivered this majority last July. I looked at the Liberal Democrats manifesto and its plans for the relationship with the European Union, and it contained four steps. If we were choosing to do this in four different phases, we would be moving a lot more slowly than we are at the moment, so I hope the hon. Lady will welcome the progress we are making.

I know there is a lot of speculation on the issue of youth mobility. Of course, we consider sensible proposals in accordance with our red lines, but our position remains the same: there are no plans for a youth mobility scheme, and we have been clear that there will be no return to freedom of movement.