The government should support sectors that would lose out from Brexit

Anna Sonny, 5 September 2014

One of the biggest problems posed by the possible referendum on Britain’s EU membership is the uncertainty surrounding Brexit – British exit from the EU. Jonathan Lindsell’s new book, Softening the Blow, deals realistically with the possible implications of Britain’s departure from the EU, which is something the government has failed to do as yet.

Much of the debate around Britain’s membership of the EU is argued in binaries between pro-Europeans lamenting the possibility of Britain’s total economic isolation and eurosceptics championing economic independence. But the focus on these extremes fails to take the concerns of those who currently gain from Britain’s EU membership into consideration. The fact is that there are British sectors that do benefit from the EU, and instead of glossing over this fact the government needs to do more to clear the fog of uncertainty that is hanging over possible Brexit.

One important issue to consider is that sectors such agriculture, fisheries, small business, engineering and the Welsh government receive funding from the EU in the form of subsidies or research and development grants; leaving the 28-nation bloc would have a huge impact on these sectors, including the countryside and British farmers and fishermen, who would be competing with Europeans who are still being subsidised. Through talking to senior figures in these sectors, Lindsell acknowledges these concerns and suggests that in order to offset this if we do end up leaving, the government should pledge to match any funding with the money saved from no longer having to make EU budget contributions.

Lindsell writes: “These commitments could be based on cross-party agreement or an inflation-linked system, limited treaties to stay part of specific EU initiatives, or memoranda of understanding.’

Over the past week, the fault lines in the Tory party have been deepening; Cameron’s renegotiation plans for Britain’s EU membership don’t go far enough for those in the eurosceptic camp, and there are threats of a split after the general election. With Douglas Carswell’s recent defection to Ukip, the pressure will be on Cameron to take seriously the possibility of Brexit – to map out a strategy of how it would happen and how Britain would survive. In order for the referendum to be fair, and even worthwhile, people will need to have a clear idea of what they’re voting for in the first place.

Whitehall needs to plan better; leaving the EU could have a serious impact on certain sectors of British industry and the government will need to think about how it will soften the blow.

To download Softening the Blow, visit here.