- Dr Gerard Lyons also criticised previous Conservative governments for their Brexit policies.
Britain’s economic growth is “not dependent on the EU”, a leading economist has warned the new government.
Dr Gerard Lyons has urged the Prime Minister to stand firm in the face of calls to rejoin the single market, saying he should instead “make the most” of Brexit.
He He argued that it was better to ignore pro-Brussels voices that “exaggerate” the benefits of membership and said Labour They should instead focus on internal challenges.
“The government must have the confidence to stand firm outside the EU institutions,” he wrote in a paper for the Centre for Policy Studies.
“Returning to the EU, its single market or its customs union will not offer a solution to the UK’s growth challenge and should not be part of any pro-growth strategy, despite recent clamour by some in favour of this,” he added.
Dr Gerard Lyons, who previously advised former Prime Minister Liz Truss, has also criticised previous Conservative governments for their Brexit policies.
‘The main challenges facing the UK predate Brexit and the solutions do not depend on being in the EU.’
Dr Lyons’ comments, as reported by The Telegraph, come after Sir Keir Starmer promised his government would oversee a “reset” of relations with Europe.
While he has pushed for a closer trading relationship, the Labour leader has repeatedly ruled out rejoining the single market or customs union.
That pledge, along with a rejection of a possible return to freedom of movement, was outlined in Labour’s manifesto and described as one of the “red lines” Starmer will not cross in his quest for a better trade deal with Brussels.
These commitments put the Labour leadership at odds with some of its MPs and a large section of its supporters, who remain in favour of rejoining the bloc.
Dr Lyons argued that much of the “clamor” around the benefits of the single market was based “on a misunderstanding of our underlying growth problems”.
He noted that Britain’s persistent trade deficit first developed in the 1980s, when the country was a member of the EU.
He added that any future relationship with the EU should not be based on “wishful thinking” but on “an accurate assessment of the current situation”.
The economist, who previously advised former Prime Minister Liz Truss, also criticised previous Conservative governments and what he described as their failure to “deliver a well-thought-out post-Brexit economic policy”.
This comes after Sir Keir Starmer promised his government would oversee a “reset” of relations with Europe.
He argued that by failing to take advantage of the potential benefits of leaving the EU they had “contributed to creating an economically damaging narrative about the UK on the world stage”.
After his election last month, the new prime minister promised to improve what he called the “botched deal” signed by former Prime Minister Boris Johnson.
Speaking in Belfast, Starmer said his new government would first need to implement changes under the current arrangement to build trust with the European Union.
“We cannot achieve a better relationship unless we demonstrate commitment to the relationship and the agreements that have already been established,” he said.
But last week it was reported that Brussels had presented the UK with a list of demands in exchange for closer ties.
Commission Vice-President Maros Sefcovic outlined eight demands during his first meeting with EU Minister Nick Thomas-Symonds last month.
These include fully implementing existing Brexit arrangements in Northern Ireland and over-regulating the rights of EU citizens living in Britain as a “test of good faith”, according to the FT.