Lisa Smart

I am delighted that I am not going to be the first Liberal Democrat to mention a bespoke customs union with the EU. I strongly agree with my hon. Friend on that point; it is the biggest single lever that the Government could pull to boost growth in our economy. Recently, we have seen the Government U-turn—rightly, in some cases—including on the family farm tax, following 14 months of calls for change from farmers, the Lib Dems and others. That has been alongside U-turns on winter fuel and benefit reform, to name just two others. I understand why a million people are underwhelmed. The Government have introduced a growth-crushing jobs tax that has stretched their manifesto pledge not to raise income tax on working people. As a result, jobs are being lost, economic growth is flatlining and the Government are not showing a clear enough vision to get us out of this mess. While the Government now increasingly acknowledge that Brexit has been detrimental to economic growth, they have failed to take sufficiently meaningful action to address that reality. The figures are stark. According to the House of Commons Library, as of 2025 Brexit is costing British tax payers £90 billion annually in lost tax revenue. That is billions of pounds not funding our public services. The Government must move beyond merely attributing blame on Brexit and begin implementing solutions. As my hon. Friend the Member for Epsom and Ewell (Helen Maguire) mentioned, we Liberal Democrats are urging the Government to negotiate a new UK-EU customs union, which could raise more than £25 billion annually for the Exchequer. A customs union would be the most effective means of dismantling trade barriers and stimulating economic growth. We must be far more ambitious in securing the best possible arrangements for UK relations with the EU—our largest trading partner.