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Version 12 Version 13
EU referendum live – Vote Leave backtracks on energy bills claim EU referendum live – Vote Leave backtracks on energy bills claim
(35 minutes later)
3.20pm BST
15:20
Farage says, if Remain win, UK might not get 2nd referendum until another country leaves EU
I’m spending the day on the semi-organised chaos of the Ukip-led unofficial Brexit campaign battlebus, currently between Birmingham and Northampton. Before a stop for the inevitable pub lunch I had a chat with Nigel Farage about his thoughts on the campaign and the possible aftermath of the 23 June vote.
Farage said he does not believe a vote for Remain will end the EU argument permanently, predicting that growing anti-EU feeling in places like Italy could see another nation leave, reigniting the debate in the UK.
“The issue won’t go away,” he said. “I suspect that if Remain were to win narrowly then we’d wait for another country to get out first. And just look at the shift.”
This would, however, take some time, Farage said: “If we lost, would there be a second referendum soon? There would be a chunk of the Conservative party that would be irreconcilable to the way the campaign had been fought. But is the British parliament going to give us another referendum? I don’t think so.”
It would this take a vote to leave from another nation, he predicted: “I suspect somebody else would do it for us. But the arguments won’t go away because the EU is going to get worse.”
In less policy-based news Farage revealed he is currently on his first-ever mid-campaign diet, prompted by a regime of hotel breakfasts, pub lunches and evening curries. In a telling vignette, an aide had earlier struggled to find a bottle of water. “There’s Rioja,” he said. “And beer. The water must be somewhere.”
And Farage is even going to the open top deck of the bus for a cigarette when it is on the motorway.
3.08pm BST
15:08
Here’s a Guardian video explaining Brexit for non-Brits.
2.53pm BST2.53pm BST
14:5314:53
Jeremy Corbyn, the Labour leader, has written an article for Huffington Post encouraging young people to register to vote in the referendum. Here’s an excerpt.Jeremy Corbyn, the Labour leader, has written an article for Huffington Post encouraging young people to register to vote in the referendum. Here’s an excerpt.
Too many young people I meet feel insecure about their housing and working life - where low pay, insecure hours and temporary contracts have become the norm.Too many young people I meet feel insecure about their housing and working life - where low pay, insecure hours and temporary contracts have become the norm.
There has never been a more important time to get political. In the words of the US politician Ralph Nader, “if you don’t turn on to politics, politics will turn on you” ...There has never been a more important time to get political. In the words of the US politician Ralph Nader, “if you don’t turn on to politics, politics will turn on you” ...
The more people participate in our democracy, the better decisions we will make as a country. That’s why I have been so encouraged that young people are turning to Labour in increasing numbers.The more people participate in our democracy, the better decisions we will make as a country. That’s why I have been so encouraged that young people are turning to Labour in increasing numbers.
Our party membership has doubled in the last year, and our youth membership (for those under 27) has more than trebled. Labour now has more young people as members than Ukip or the Liberal Democrats have members in total.Our party membership has doubled in the last year, and our youth membership (for those under 27) has more than trebled. Labour now has more young people as members than Ukip or the Liberal Democrats have members in total.
I want young people to have their voice heard in the EU referendum on 23 June and in politics more generally. That’s why it’s so important that you register to vote, encourage your friends to register to vote by 7 June - and then use that vote.I want young people to have their voice heard in the EU referendum on 23 June and in politics more generally. That’s why it’s so important that you register to vote, encourage your friends to register to vote by 7 June - and then use that vote.
2.07pm BST2.07pm BST
14:0714:07
Lunchtime summaryLunchtime summary
More fantasy economics from Vote Leave: leaving EU would lead to smaller economy, a hole in public finances + higher taxes - like higher VATMore fantasy economics from Vote Leave: leaving EU would lead to smaller economy, a hole in public finances + higher taxes - like higher VAT
Vote Leave has responded by arguing that Britain Stronger in Europe has “invented pledges that don’t exist” and that the alleged spending proposals it is highlighting are just illustrations of how money saved could be used.Vote Leave has responded by arguing that Britain Stronger in Europe has “invented pledges that don’t exist” and that the alleged spending proposals it is highlighting are just illustrations of how money saved could be used.
I think what that shows is unfortunately some people in this debate prefer to play the man rather than the ball. Which tells you all, really.I think what that shows is unfortunately some people in this debate prefer to play the man rather than the ball. Which tells you all, really.
Hear @sajidjavid of @StrongerIn says Iain Duncan Smith would "prefer to play the man rather than the ball" on #EUref pic.twitter.com/lr1VYZCiA8Hear @sajidjavid of @StrongerIn says Iain Duncan Smith would "prefer to play the man rather than the ball" on #EUref pic.twitter.com/lr1VYZCiA8
BIS Secretary @sajidjavid asked if he's changed mind on #EUref "My view has always been clear on the economic issue" pic.twitter.com/uLD7Thd5BSBIS Secretary @sajidjavid asked if he's changed mind on #EUref "My view has always been clear on the economic issue" pic.twitter.com/uLD7Thd5BS
Last week sources close to Javid insisted that he had never called for the UK to leave the EU, either in private or in public.Last week sources close to Javid insisted that he had never called for the UK to leave the EU, either in private or in public.
Make no mistake: if we vote to leave the EU, small businesses will be hit hard.Make no mistake: if we vote to leave the EU, small businesses will be hit hard.
You may have heard the myth that only massive multinationals want us to stay in the EU; that small businesses want out; that hardly any small firm exports to the EU, so leaving it won’t be such a big deal.You may have heard the myth that only massive multinationals want us to stay in the EU; that small businesses want out; that hardly any small firm exports to the EU, so leaving it won’t be such a big deal.
That’s just plain wrong. It’s a misconception that could have dangerous consequences for millions of people who rely on small businesses for their jobs and for their livelihoods.That’s just plain wrong. It’s a misconception that could have dangerous consequences for millions of people who rely on small businesses for their jobs and for their livelihoods.
This week’s ORB poll for the Daily Telegraph suggests that the Leave campaign increasing focus on lack of control over immigration and associated message discipline has helped their case.This week’s ORB poll for the Daily Telegraph suggests that the Leave campaign increasing focus on lack of control over immigration and associated message discipline has helped their case.
The effectiveness of this improved clarity and emphasis is demonstrated by the four point jump (to 46%) in the Leave campaign’s vote share among Definite Voters in this poll. The Remain campaign’s vote share has correspondingly fallen by four points (to 51%).The effectiveness of this improved clarity and emphasis is demonstrated by the four point jump (to 46%) in the Leave campaign’s vote share among Definite Voters in this poll. The Remain campaign’s vote share has correspondingly fallen by four points (to 51%).
As always caution must be exercised with one poll and it is possible that last week’s poll which showed strong gains for Remain may have been overly positive for the Remain camp but there have been significant lifts in most factors for the Leave case.As always caution must be exercised with one poll and it is possible that last week’s poll which showed strong gains for Remain may have been overly positive for the Remain camp but there have been significant lifts in most factors for the Leave case.
I would want us to be very vigorous about any applicant for asylum from Albania.I would want us to be very vigorous about any applicant for asylum from Albania.
Albania is a candidate country of the European Union and unless there is an extremely individual and particular reason for granting asylum for someone from Albania then I would want to have an asylum system that treated those people as economic migrants.”Albania is a candidate country of the European Union and unless there is an extremely individual and particular reason for granting asylum for someone from Albania then I would want to have an asylum system that treated those people as economic migrants.”
As part of the Government’s approach, additional vessels to supplement Border Force’s three cutters in UK waters will take to the sea in the coming months - but full deployment will not take place until the end of 2017.As part of the Government’s approach, additional vessels to supplement Border Force’s three cutters in UK waters will take to the sea in the coming months - but full deployment will not take place until the end of 2017.
UpdatedUpdated
at 2.20pm BSTat 2.20pm BST
1.22pm BST1.22pm BST
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Grassroots Out has paid for full-page adverts in 21 regional newspapers today. One of the adverts featured is this one.Grassroots Out has paid for full-page adverts in 21 regional newspapers today. One of the adverts featured is this one.
Peter Bone, the Conservative MP and a Grassroots Out co-founder, said:Peter Bone, the Conservative MP and a Grassroots Out co-founder, said:
The Grassroots Out message is very straightforward. This is a battle between the people and the establishment.The Grassroots Out message is very straightforward. This is a battle between the people and the establishment.
We may be David and they may be Goliath but we can win this referendum and voters must not be bullied by the likes of Obama.We may be David and they may be Goliath but we can win this referendum and voters must not be bullied by the likes of Obama.
12.53pm BST12.53pm BST
12:5312:53
Farron suggests Gove should be sacked from cabinet after EU referendumFarron suggests Gove should be sacked from cabinet after EU referendum
Tim Farron, the Lib Dem leader, is suggesting that Michael Gove should be sacked from the cabinet after the referendum, and that Boris Johnson should be kept out. In a statement referring to the Vote Leave spending proposals (see 9.01am) he says:Tim Farron, the Lib Dem leader, is suggesting that Michael Gove should be sacked from the cabinet after the referendum, and that Boris Johnson should be kept out. In a statement referring to the Vote Leave spending proposals (see 9.01am) he says:
The right wing of the Conservative party have abandoned any pretence of economic competence in order to try and force a vote for leave. Boris, Gove and co can’t be trusted on the facts, and now they are proving that they can’t be trusted with the economy either.The right wing of the Conservative party have abandoned any pretence of economic competence in order to try and force a vote for leave. Boris, Gove and co can’t be trusted on the facts, and now they are proving that they can’t be trusted with the economy either.
When the referendum is over, David Cameron will have to explain how he can justify keeping people willing to wilfully mislead people and threaten our economy in his cabinet.When the referendum is over, David Cameron will have to explain how he can justify keeping people willing to wilfully mislead people and threaten our economy in his cabinet.
12.44pm BST12.44pm BST
12:4412:44
Peter WalkerPeter Walker
Nigel Farage, the Ukip leader, has spent a slightly chaotic morning spreading the leave message at Birmingham’s Bull Ring market, arriving at the edge of the stalls in a purple battlebus blaring out the Great Escape theme song before engaging with a crowd notably more receptive to his message than, the polls would indicate, is the case nationally.Nigel Farage, the Ukip leader, has spent a slightly chaotic morning spreading the leave message at Birmingham’s Bull Ring market, arriving at the edge of the stalls in a purple battlebus blaring out the Great Escape theme song before engaging with a crowd notably more receptive to his message than, the polls would indicate, is the case nationally.
“I do like him,” said 71-year-old Pauline Jones, there to watch with her husband. “I don’t think we see enough of Nigel Farage. He’s been a bit pushed out by Boris Johnson and Michael Gove. It’s a shame.”“I do like him,” said 71-year-old Pauline Jones, there to watch with her husband. “I don’t think we see enough of Nigel Farage. He’s been a bit pushed out by Boris Johnson and Michael Gove. It’s a shame.”
Leading a smallish but committed throng on a tour of the stalls, Farage at once criticised the Remain camp for its simplistic message while delivering arguments which, while generally more positive, were themselves also fairly broad in tone.Leading a smallish but committed throng on a tour of the stalls, Farage at once criticised the Remain camp for its simplistic message while delivering arguments which, while generally more positive, were themselves also fairly broad in tone.
He spent almost ten minutes trying to persuade a pair of young women running a clothes accessories stall to vote for the first time and vote to leave, talking rapidly about industry, regulations and borders.He spent almost ten minutes trying to persuade a pair of young women running a clothes accessories stall to vote for the first time and vote to leave, talking rapidly about industry, regulations and borders.
“I can’t guarantee that once we’re running our own affairs again, things will be perfect. But at least the people making the rules, we will vote for and we can remove,” he told Laura, 24, and Amy, 25.“I can’t guarantee that once we’re running our own affairs again, things will be perfect. But at least the people making the rules, we will vote for and we can remove,” he told Laura, 24, and Amy, 25.
“I also think we should be a bit prouder of who we are as a country, stand a bit taller as a country, and maybe re-engage our friendships with India, Australia, Canada and the Commonwealth, and have a more global view of the world,” Farage argued, producing from his jacket pocket his passport for about the dozenth time that morning to show the gold “European Union” wording.“I also think we should be a bit prouder of who we are as a country, stand a bit taller as a country, and maybe re-engage our friendships with India, Australia, Canada and the Commonwealth, and have a more global view of the world,” Farage argued, producing from his jacket pocket his passport for about the dozenth time that morning to show the gold “European Union” wording.
The two women were left a bit dazzled but unsure. “I still don’t know what to do,” said Amy. “We’ve been in the EU all my life and the country is totally shit, so I don’t know if leaving can make anything much worse.”The two women were left a bit dazzled but unsure. “I still don’t know what to do,” said Amy. “We’ve been in the EU all my life and the country is totally shit, so I don’t know if leaving can make anything much worse.”
In general the reception was friendly, with several stalls in the indoor food market area hanging signs from Farage’s leave camp, and seeking pictures with him.In general the reception was friendly, with several stalls in the indoor food market area hanging signs from Farage’s leave camp, and seeking pictures with him.
Here are some of Farage’s tweets about his visit.Here are some of Farage’s tweets about his visit.
Fantastic response in Birmingham from small business owners who want their country back. #BrexitBusTour pic.twitter.com/VmLHxjaiPYFantastic response in Birmingham from small business owners who want their country back. #BrexitBusTour pic.twitter.com/VmLHxjaiPY
The enthusiasm to Leave EU here in Birmingham is incredible. Extremely encouraging. #BrexitBusTour pic.twitter.com/sv6907oONLThe enthusiasm to Leave EU here in Birmingham is incredible. Extremely encouraging. #BrexitBusTour pic.twitter.com/sv6907oONL
UpdatedUpdated
at 12.45pm BSTat 12.45pm BST
12.31pm BST12.31pm BST
12:3112:31
And here are some lines from Chris Grayling’s Q&A.And here are some lines from Chris Grayling’s Q&A.
Grayling on where EU money would go' We wouldn't necessarily spend every penny on the NHS.' Surely NOT what it says on the side of the bus?Grayling on where EU money would go' We wouldn't necessarily spend every penny on the NHS.' Surely NOT what it says on the side of the bus?
Grayling; Vote Leave can only set out options for the Government. Cutting VAT on fuel is one of the options.Grayling; Vote Leave can only set out options for the Government. Cutting VAT on fuel is one of the options.
That is not quite the way it came out in today’s Sun.That is not quite the way it came out in today’s Sun.
Grayling "interpreted" Priti comment about leaders of Remain camp being too posh to push on migration as "about banks + big biz" not the PM.Grayling "interpreted" Priti comment about leaders of Remain camp being too posh to push on migration as "about banks + big biz" not the PM.
Sky’s Beth Rigby thinks Grayling may be more interested in a post-referendum promotion than Patel.Sky’s Beth Rigby thinks Grayling may be more interested in a post-referendum promotion than Patel.
Grayling invited by press 2 attack Javid, and pile in behind Patel on 'posh remainers'. He has declined. Post #Euref promotion. Definitely.Grayling invited by press 2 attack Javid, and pile in behind Patel on 'posh remainers'. He has declined. Post #Euref promotion. Definitely.
Chris Grayling turns a blind eye to the upheaval in the Tory party: "I am not part of a party that is going to rip itself to pieces."Chris Grayling turns a blind eye to the upheaval in the Tory party: "I am not part of a party that is going to rip itself to pieces."
Chris Grayling says he does not feel like he's in a party about to rip itself apart & all will go back to normal in three weeks' time. Hmm!Chris Grayling says he does not feel like he's in a party about to rip itself apart & all will go back to normal in three weeks' time. Hmm!
Grayling: I trust Sir Jeremy Heywood to lead the Brexit talks with the EU if Britons vote to leave on June 23. #EUrefGrayling: I trust Sir Jeremy Heywood to lead the Brexit talks with the EU if Britons vote to leave on June 23. #EUref
12.15pm BST12.15pm BST
12:1512:15
Grayling says UK is not protected from 'every closer union'Grayling says UK is not protected from 'every closer union'
Here is the full text of Chris Grayling’s Vote Leave speech, on the risks of remaining in the EU.Here is the full text of Chris Grayling’s Vote Leave speech, on the risks of remaining in the EU.
And here are the key points.And here are the key points.
So what’s the problem. Well, ladies and gentlemen, the problem is this. We have an opt-out from the euro. We have an opt-out from the Schengen Area. We have an opt-out from some justice and home affairs measures.So what’s the problem. Well, ladies and gentlemen, the problem is this. We have an opt-out from the euro. We have an opt-out from the Schengen Area. We have an opt-out from some justice and home affairs measures.
But on everything else we have no opt out. We are subject to every law introduced by the EU and in the eurozone. On banking and financial services. On business regulation. And on EU social policy, on the so-called social Europe, we have no opt out.But on everything else we have no opt out. We are subject to every law introduced by the EU and in the eurozone. On banking and financial services. On business regulation. And on EU social policy, on the so-called social Europe, we have no opt out.
So we have a new list of EU social policies which will deepen integration across the eurozone. But these will be EU laws passed in the normal way. There is no other method of doing so right now. And we have no opt-out from them.So we have a new list of EU social policies which will deepen integration across the eurozone. But these will be EU laws passed in the normal way. There is no other method of doing so right now. And we have no opt-out from them.
Many of these measures will be things we already do well; some may be measures we would want in the UK. The point is that it should be up to us to control what happens to the NHS, to workers’ rights and to social protection and control over these areas should not lie with Brussels ...Many of these measures will be things we already do well; some may be measures we would want in the UK. The point is that it should be up to us to control what happens to the NHS, to workers’ rights and to social protection and control over these areas should not lie with Brussels ...
And this is why we are not at all exempt from ever closer union. Because the nuts and bolts of integration will come from new EU laws passed under the terms of the Lisbon treaty.And this is why we are not at all exempt from ever closer union. Because the nuts and bolts of integration will come from new EU laws passed under the terms of the Lisbon treaty.
The Lisbon treaty itself is a huge part of the problem.The Lisbon treaty itself is a huge part of the problem.
It is vaguely worded, and gives both the commission and the European court of justice free rein to expand their brief and take over competences from the member states.It is vaguely worded, and gives both the commission and the European court of justice free rein to expand their brief and take over competences from the member states.
It’s already happened. Under the treaty individual countries are supposed to be responsible for social security. But the European court decided that the free movement rights of the European citizen were more important, and now the EU controls more and more aspects of our benefit system. A treaty we signed in good faith is being rewritten by a court whose president made a speech saying the job of the European commission is to resist Euroscepticism.It’s already happened. Under the treaty individual countries are supposed to be responsible for social security. But the European court decided that the free movement rights of the European citizen were more important, and now the EU controls more and more aspects of our benefit system. A treaty we signed in good faith is being rewritten by a court whose president made a speech saying the job of the European commission is to resist Euroscepticism.
11.40am BST11.40am BST
11:4011:40
My colleague Peter Walker has been tweeting from Nigel Farage’s visit to Birmingham.My colleague Peter Walker has been tweeting from Nigel Farage’s visit to Birmingham.
He's here! Farage drives into the middle of the market in his purple bus. Lots of talk about Brussels bureaucrats pic.twitter.com/C3NXe3sYsPHe's here! Farage drives into the middle of the market in his purple bus. Lots of talk about Brussels bureaucrats pic.twitter.com/C3NXe3sYsP
"Do you want 508 million people to have this passport?" Farage booms from mic. "No!" yell back dozen or so people."Do you want 508 million people to have this passport?" Farage booms from mic. "No!" yell back dozen or so people.
Farage asked by local dad to sign his T shirt saying, "Sons of Anarchists". Farage visibly not sure but still does.Farage asked by local dad to sign his T shirt saying, "Sons of Anarchists". Farage visibly not sure but still does.
Some people here I've talked to say they think Farage is best person to deliver Brexit message but sidelined for Johnson & GoveSome people here I've talked to say they think Farage is best person to deliver Brexit message but sidelined for Johnson & Gove
Nigel Farage has now taken out his passport to show to people to show off the "EU passport" wording about a dozen times now.Nigel Farage has now taken out his passport to show to people to show off the "EU passport" wording about a dozen times now.
Nigel Faraga talks fish quotas at a fish counter in the indoor market. pic.twitter.com/UjlU7scEzgNigel Faraga talks fish quotas at a fish counter in the indoor market. pic.twitter.com/UjlU7scEzg
11.34am BST11.34am BST
11:3411:34
Michael Gove’s claim that he is opposed to VAT because it’s unfair on the poor (see 10.13am) may sound unlikely, but in his book about the coalition government, Coalition, David Laws, the Lib Dem former schools minister, says Gove has progressive views on tax at odds with official Conservative policy.Michael Gove’s claim that he is opposed to VAT because it’s unfair on the poor (see 10.13am) may sound unlikely, but in his book about the coalition government, Coalition, David Laws, the Lib Dem former schools minister, says Gove has progressive views on tax at odds with official Conservative policy.
He describes Gove as someone who “had quietly let it be known that he thought the 2012 reduction in the top rate of tax was premature; and who was believed to have told friends that he thought inheritance tax should be increased, not reduced.”He describes Gove as someone who “had quietly let it be known that he thought the 2012 reduction in the top rate of tax was premature; and who was believed to have told friends that he thought inheritance tax should be increased, not reduced.”
Laws worked with Gove in the Department for Education and admires him.Laws worked with Gove in the Department for Education and admires him.
His book, by the way, may not be the definitive account of the coalition, as claimed on the cover, but is a very good one nevertheless, and excellent on Lib Dem/Conservative policy negotiations. Laws and Nick Clegg (whose notes he uses) also seem to have kept a lot of verbatim records, and so there are far more direct quotes than usual in a memoir like this, which help to make it a lively read.His book, by the way, may not be the definitive account of the coalition, as claimed on the cover, but is a very good one nevertheless, and excellent on Lib Dem/Conservative policy negotiations. Laws and Nick Clegg (whose notes he uses) also seem to have kept a lot of verbatim records, and so there are far more direct quotes than usual in a memoir like this, which help to make it a lively read.
11.14am BST
11:14
Chris Grayling, the leader of the Commons and former justice secretary, is giving a speech on the risks of remaining in the EU.
I will post a summary when I’ve seen the text.
Grayling; You cannot have single currency without political union... There has to be a United States of the Eurozone pic.twitter.com/Tv81TC6GN2
Updated
at 2.33pm BST
11.03am BST
11:03
David Davis, the Conservative backbencher, Brexit campaigner and David Cameron’s main rival for the leadership in 2005, has said that those Tories calling for Cameron to stand down after the EU referendum are being “unhelpful”. He said:
This referendum is about the country, not the Conservative party. It is vital that the British people make their decision on the best facts available, and on what they think is in the long term interests of the country - not on short-term skirmishing about what may or may not happen after the referendum is over. In the light of that, these calls are an unnecessary and unhelpful distraction.
It is entirely likely that what the country, and indeed the Conservative Party, will want after an unavoidably bruising referendum debate, is a period of stability - not another battle. That may be particularly true if we are in the middle of negotiating our exit from the EU.
10.57am BST
10:57
Nigel Farage, the Ukip leader, is campaigning in Birmingham this morning. He has just tweeted this.
Great to be here in Birmingham on the #BrexitBusTour. The only way that we can control our borders is to Leave EU. pic.twitter.com/YiCgPU5bLW
10.53am BST
10:53
Why EU membership does not cost the UK £350m a week
Those of you who have been following the EU debate will be familiar with the arguments as to why Vote Leave’s claim that EU membership costs the UK £350m a week is dodgy, but for reference here is what the Commons Treasury committee and the Institute for Fiscal Studies said about this in reports last week.
From the Treasury committee report.
At the heart of Vote Leave’s presentation of its case is the claim that, on leaving the EU, the UK government would receive a windfall of £350m per week, available to be spent in other ways, “like the NHS and schools”. This, and the other figures used byVote Leave for the UK’s EU budget contributions (£150bn ‘contributed’ in the past decade, and £511bn since joining) are highly misleading to the electorate for a number of reasons.
First, Vote Leave’s £350m figure does not account for the budget rebate, which amounts to £85m per week. Leaving the EU could not make this money available to spend on schools and hospitals because it is not ‘sent’ to Brussels in the first place. The rebate does not leave the UK or cross the exchanges. This is repeated in other ways. A ‘counter’ is prominently displayed on Vote Leave’s website. This purports to show that the UK has historically contributed £511bn to the EU since joining in 1973 and excludes the rebate. The UK rebate is indeed controversial in other Member States. It may be raised in future negotiations over the EU’s financial framework. However, it can only be changed with the UK Government’s consent, as happened in the Government led by Tony Blair.
Secondly, the extent to which money that the UK receives from the EU budget (a further £88m per week to the public sector and £79m per week to the private sector and non-governmental organisations) would be available for spending on other priorities, would depend on the policy choices of the democratically-elected government of the day. Vote Leave has stated that “There will [ … ] be financial protection for all groups that now get money from Brussels”. If that policy were implemented, the money available to fund other priorities after Brexit, such as schools and hospitals, would be much lower, and probably closer to the UK’s net contribution of £110 million per week than it is to £350 million. This would be true even if, as has been widely argued, efficiencies could be made in the way that money the UK currently receives from the EU budget is spent.
Finally, it is not impossible that the UK may continue to make contributions to the EU budget after Brexit, either on a transitional or permanent basis, in return for continued access to parts of the single market, or because it considers mutual co-operation in certain areas, such as science research, to be desirable. This too would reduce the supposed fiscal windfall arising from leaving the EU.
From the Institute for Fiscal Studies report (pdf)
The UK’s notional gross contribution (i.e. ignoring the UK’s rebate) in 2014 was £18.8 billion, which is about 1% of GDP. It is by dividing this number by 52 weeks that one comes to the widely-reported figure of over £350 million a week as the UK’s contribution to the EU. But in this context, ignoring the rebate is clearly inappropriate. It is equivalent to suggesting that were the UK to leave the EU and not make any financial contribution to the EU’s budget then remaining EU members would continue to pay the rebate to the UK. That is clearly absurd. The correct figure to use for the UK’s gross financial contribution takes account of the rebate. It stood at £14.4 billion, or 0.8% of GDP, in 2014.1 (This is equivalent to around £275 million a week.)
In principle, the UK’s public finances could be strengthened by that full £14.4 billion a year if we were to leave the EU. However, the EU returns a significant fraction of that each year. The amount varies, but on average our net contribution stands at around £8 billion a year. That is £8 billion a year that we could use to fund other spending, cut taxes or reduce the deficit.
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10.30am BST
10:30
Vote Leave’s chief executive Matthew Elliott has responded to the claim that Leave campaigners have made spending promises worth £112bn. (See 9.01am.) He said:
BSE are simply making up numbers and have invented pledges that don’t exist. If we Vote Leave, we can spend the £50 million we hand to the EU every day on our priorities, like using a small proportion of it to cut energy bills and eases the pressure on family budgets.
The Remain campaign should admit that if we vote In then Brussels will be in charge of VAT levels and will continue taxing low-income families.
(Vote Leave like referring to Britain Stronger in Europe by the acronym BSE because of its obvious unfortunate connotations.)
But the Vote Leave bus implies that the £50m per day (which isn’t £50m per day, remember) will be spent on the NHS. It is quite unusual in a campaign to be rebutted by your own battlebus.
Admittedly, Elliott only talks about using a “small proportion” of the money that would be saved by not having to pay a contribution to the EU on cutting fuel bills. But the Sun is costing the Gove/Johnson/Stuart proposal at £2bn, which is a quarter of the £8bn-odd that would be saved. That is not a “small proportion”.
Updated
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10.13am BST
10:13
Gove says VAT is a 'very unfair tax'
Michael Gove, the justice secretary and co-convenor of the Vote Leave campaign committee, has been giving interviews this morning. Here are the key points he has been making.
And fuel bills will be lower for everyone.
In 1993, VAT on household energy bills was imposed. This makes gas and electricity much more expensive. EU rules mean we cannot take VAT off those bills.
The least wealthy are hit particularly hard. The poorest households spend three times more of their income on household energy bills than the richest households spend.
As long as we are in the EU, we are not allowed to cut this tax.
When we Vote Leave, we will be able to scrap this unfair and damaging tax.
In an interview this morning, Gove admitted that it would be up to the government to decide after Brexit whether to scrap VAT on fuel and that he personally was not in a position to make this promise.
It would be up to the government after we vote to Leave ... I’m not the prime minister; I’m not the chancellor of the exchequer. But one thing is for certain: we could not do it if we remain in the European Union.
(In the comments, maxfisher points out the Tories don’t exactly have a good record when it comes to cutting VAT.)
Personally I think it would be the right thing to do, because VAT is a very unfair tax, it hits the poorest people hardest, and actually the cost of fuel for the poorest households is about £105 of their weekly income. I think it would be a really good thing if we could help the poorest people in our country by removing this unfair tax burden on them, which will hit particularly hard as we go into the winter.
It is worth reminding readers that in his first budget in 2010 George Osborne raised VAT from 17.5% to 20%, raising £13bn a year.
I think that David Cameron should stay as prime minister. The country voted for David to be prime minister in the general election last year ... I want David Cameron to be prime minister right up until the next election.
The one thing I absolutely don’t want to do is to be prime minister.
I think it is absolutely right to say that some of the people who are backing Remain are the people at the top of multinationals and the top of investment banks who do very well thank you out of the European Union. And I also think it’s the case that the people who suffer most as a result of our membership of the European Union are the poorest, they are the people whose wages are lower and whose access for example to NHS services is more difficult.
This is a more tactful version of the argument that Priti Patel, the pro-Brexit employment minister, put in a Sunday Telegraph article at the weekend. Patel was more blunt, implying that Cameron and George Osborne did not understand voters’ concerns about immigration because they were too posh.
I’ve taken some of the quotes from PoliticsHome.
9.30am BST
09:30
According to the Sun, Nicola Sturgeon, Scotland’s first minister, is being lined up to be one of the three speakers representing Remain in the ITV debate being held next week.
9.20am BST
09:20
Britain Stronger in Europe have released a video message from Lord Sugar, the Apprentice star, businessman, former Labour peer and - as of last week - government enterprise tsar.
A pyschologist would have fun with this. Sugar starts: “I started my business when I was seventeen years old from a council flat in Clapton. I am not a drug dealer, I didn’t rob banks ...”
Whoever said you did, Alan?
Still, Sugar’s key message is direct and punchy.
You could not be listening to a bigger gambler than me. I’ve gambled all my life in business, okay, and I am telling you this is a gamble that we cannot afford to take ...
Let me put it in very plain terms. This is not a general election, this is not something that’s going to come round in five years’ time, oh, it didn’t work, okay well we’ll have another vote. No. No, this is the most serious vote you most probably will ever make in your lifetime.
Now I’ve been in business for many years and I’ve seen plenty of daft ideas and duff proposals in my time and Britain leaving the European Union is one of them.
9.10am BST
09:10
Ryan Coetzee, Britain Stronger in Europe’s director of strategy, has responded to my tweet about their costings document.
@AndrewSparrow It's just a record of what they have claimed. The point is their claims are nonsensical and dishonest.
9.01am BST
09:01
Britain Stronger in Europe accuse Leave of making spending promises worth £112bn
Andrew Sparrow
Good morning. I’m Andrew Sparrow, taking over from Claire.
The EU referendum campaign is becoming more like a general election every day. One standard feature of an election campaign is the attack document listing unfunded spending commitments and, as Claire reported earlier, Britain Stronger in Europe have put out their own version this morning, accusing the Leave camp of making promises worth £112bn.
The full press notice is not available on the internet yet, but here is the key table.
A British DARPA is Defence Advance Research Projects Agency.
Britain Stronger in Europe have adopted a maximalist approach to their costings.
One of the biggest items on the list is an extra £18.2bn for the NHS. They have arrived at this figure by taking literally Vote Leave’s claim that EU membership costs the UK £350m a week (it doesn’t) and that this could all be spent on the NHS.
Another is an extra £18.25bn for pensions, which they have produced by citing a Nigel Farage quote in the Guardian saying the £350m a week money could go on pensions instead. (The difference between the £18.2bn and the £18.25bn is explained by the fact that Farage talked about a saving of £50m a day, not £350m a week, giving a slightly different annual figure.)
And the third biggest item on the list is £17.2bn spent reducing council tax. The source for this, as a Leave camp “spending commitment” is a tweet from the Tory MEP Daniel Hannan saying not having to pay EU contributions could lead to the government being able to cut council tax by 60%.
Will Straw, Britain Stronger in Europe’s executive director, says his research shows that Leave have been using “fantasy economics”.
The Leave campaign has been exposed once again for promoting fantasy economics. There would be no saving and no tax cuts because our economy would be damaged by leaving.