PM: EU deal could add 0.4% to GDP and critics have ‘misread the mood’

A new deal with the EU could add billions more to the UK economy than previously suggested, Andy Burnham said, as he accused opponents of “misreading the public mood” over Brexit.Read MoreThe Prime Minister said the Treasury had confirmed in recent days that agreements under negotiation ahead of a summit later this month could raise GDP by 0.4% – up from the previous estimate of 0.3%.In an interview with The Economist, he also appeared to hit back at Tory leader Kemi Badenoch, who has warned against reopening debates about Brexit as the Government explores options for the UK’s long-term relationship with the bloc.“I think it’s interesting because I sense, since conference, that there is an appetite to discuss it,” he said.Tory leader Kemi Badenoch has warned against reopening debates on Brexit (Stefan Rousseau/PA)PA Wire“And those who are making the argument over ‘oh my goodness, don’t open up this psychodrama’ are misreading the public mood in my view.”The Prime Minister wants to lock in deals on food and drink, emissions trading and a youth mobility scheme at a Brussels summit on November 20.He said the Treasury had updated its calculations of the potential growth on the table if agreements are secured.“A deal could add up to 0.4% to GDP,” he said. “Now, that is a number that you cannot ignore.”In a sign that a food and agriculture deal is almost finalised, a draft text has been circulated among the 27 EU members, the BBC reported, along with similar documents on the emissions trading and youth mobility plans.Mr Burnham has told ministers that the period beyond the summit would be to “explore options” for the long-term relationship that will eventually be put to the public.His remarks in recent weeks have fuelled questions about the prospect of the UK returning to the EU or adopting its freedom of movement rules, but in a separate interview airing on Tuesday he insisted voters would ultimately be “the boss” of any changes.“I have not proposed freedom of movement coming back,” he told ITV News.“I do believe that we should have an honest discussion with people about how immigration has changed since the Brexit vote because the shorter term migration of people coming from Europe and then going back has been replaced with long term settlement in bigger numbers, and that was the Boriswave.”Mr Burnham, who fought a by-election in Leave-voting Makerfield that served as a stepping stone into No 10 with a promise not to “re-run” Brexit arguments, said he had noticed during the campaign that public opinion had changed in the constituency over the decade since the 2016 Brexit vote.He continued: “I think public opinion has changed nationally.“But I want to be really clear on this issue. I will not run ahead of public opinion. The public need to be the boss when it comes to whatever happens with Brexit.”Mr Burnham was pressed again on the issue after an interview last weekend, in which he called for an “honest discussion” about a return to freedom of movement prompted questions about how close the UK could become to Brussels.Confusion deepened after further interviews, in which he first said there would be no shift within this Parliament and signalled that he could fight the next general election on a promise to take the UK back into the bloc.In a second interview, he said “no” when asked whether he would allow the UK to reinstate EU freedom of movement without a referendum, forcing Downing Street to later clarify that he was “not leaning either way” on how to move forward.Mr Burnham told MPs there was ‘no confusion at all’ over his views on the matter (Russell Cheyne/PA)PA WireMr Burnham told MPs in the Commons last week there was “no confusion at all” about his position when asked if he wanted a referendum on rejoining the bloc.He committed to sticking to red lines set out in Labour’s manifesto – which rule out returning to the customs union, single market or free movement – for the duration of this Parliament.Mr Burnham also told his Cabinet to avoid publicly backing specific options for the UK’s future relationship with the EU in a letter seeking to clarify his stance.Meanwhile, the Liberal Democrats repeated calls for a return to the EU single market and customs union.Responding to the reports that a draft deal on food and farming checks has been agreed, the party’s Europe spokesman Al Pinkerton said: “Scrapping the Brexit red tape strangling British food exporters is long overdue. For years, unnecessary trade barriers have held back British farmers and businesses while families have faced higher food prices and less variety on supermarket shelves.“This deal is a step in the right direction, but it’s a patch, not a fix.“The real solution is to rejoin the single market and to establish a customs union with the EU. The Liberal Democrats have consistently made the case for both, because removing barriers to trade means stronger businesses, lower prices and a growing economy.“Ministers must now drop their self-imposed red lines and recognise that Britain’s economic future depends on rebuilding our relationship with our closest neighbours.”