Britain: Blaming the EU is an easy way out. Leaving it would be bad for Britain - by Phillip Souta

Britain an Island again

Nigel Lawson’s conversion to the UKIP agenda on the pages of the Times must have made Nigel Farage’s day.

It is undeniable that the two Nigels’ message on Europe is getting more of a hearing now than it has in the last ten years. In the same way that UKIP’s rise has caused commentators and the mainstream parties to show their spending plans do not stand up to scrutiny, the better off out camp is facing the same challenge. “Welcome to test cricket,” as John Major said.

For the last 40 years, the British people have always voted for parties in favour of our EU membership.

Whilst those who support membership must continue to explain why, there is arguably a much heavier burden of proof on those who would take us out. Where is the evidence it would be good for us, and what are the alternatives.

The argument is often put forward that the UK is a net contributor to the EU (equivalent to roughly £750 per household each year) and therefore makes us worse-off financially. That contribution gives us access to £11 trillion worth of economic activity and free trade which has generated around £3,300 per British household per year over the last 30 years. If we were to leave, we would no longer have unfettered access to the largest market in the world, and one that is on our doorstep. For the foreseeable future, approximately half of Britain’s trade will be with Europe.

The UK is home to large numbers of foreign companies who choose to locate here to avail of the EU market access that our membership provides. If we left, so would many of those companies.

Departure would also jeopardise the 49 per cent of foreign direct investment stock in the UK that comes from other EU countries, which was worth £465bn in 2009. British goods would incur significant import taxes (55 per cent in the case of dairy produce) to reach the EU market, making them less competitive. Half our corporation tax revenue from financial services would be at risk, and the possibility of the EU erecting non-tariff barriers to the free movement of services would jeopardise London’s place as a global financial centre.

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