Brown sets out ‘third option’

It would be “politically irresponsible” for the EU to erect barriers to trading with the UK after Brexit, LiamFox said as he warned such a move would cause economic damage across the continent.

The international trade secretarywarneditwouldbe a “self-defeating” move for Europe’s leaders if they did not agree to the kind ofcomprehensive free trade deal sought by Theresa May.

Dr Fox also warned against “seductive” protectionism, likening it to a class A drug that was “disastrous” over time.

In his speech at the Conservative spring forum, withMrsMay poised to begin the Brexit process within a fortnight, Dr Fox issued his warning to the Brussels officials and politicians who will decide the terms of any deal.

“Given the challenges facing commercial interests across the globe, we should a l l consider whether we really want to create barriers where none currently exist,” he said. “So, we must be absolutely clear that any new impediments to trade and investment in Europe would not only be politically irresponsible, but economically dangerous – and not just for Europe but for the wider global economy too.

“We know that when we leave the EU, we will not have an EU commissioner, MEPs or a seat at the European Council. That is a political decision that we have consciously taken following the instruction from the British people at the referendum. It is a political response to a political decision.

“But it would surely be wholly inappropriate if our political decision was to be met with an economic response – in other words, if barriers to trade and investment were introduced across Europe that would damage the economic potential of all European citizens and those well beyond Europe too. That would be self-defeating.”

Dr Fox was a prominent Leave supporter and urged people to be optimistic about a post-Brexit future.

“It is time for us to ignore the siren voices, thenaysayers and the doom-mongers. Instead of talking Britain down, it is time to talk up our opportunities, our skills and our talents.

“OurplanforBritainisnot for a nation cowering in the international shadows but confident, strong and optimistic, willing to leadnotfollowandhelping toshapethe world around us”.

Dr Fox defended globalisation and free trade in his speech and warned against the “rising chorus of protectionism” in the world.

He said: “Protectionism can be seductive but is a dangerous liaison. I have described it as the class A drug of the trading world – it canmake you feel good at first but it can prove disastrous in the long term.

“It is economically destructive, preventing us from reallocating global resources effectively. It is also socially regressive because those on lower incomes spendahigherproportion of their money on goods than services so tariffs and barriers will hurt the poor more.

“And we will all pay the price if those denied theopportunity of global prosperity turn their backs on the partnerships and cooperation that underpin global security.” Gordon Brown will call for Holyrood to get a raft of new powers after Brexit as part of a “third option” for Scotland’s future.

The former prime minister will say a new form of federal home rule is needed to unite the country and avoid years of “bitter division”.

Mr Brown will give a speech at the Festival Of Ideas in Kirkcaldy against the backdrop of a constitutional stand-off between the UK and Scottish governments over the calling of a second referendum.

He has already pledged to join Scottish Labour leader Kezia Dugdale to campaign for a people’s constitutional convention to look at how power is distributed across the UK nations and regions.

He will propose a range of controls that should be passed to Holyrood after Brexit including the setting of VAT rates, the power to sign international treaties, and controls over agriculture, fisheries, environmental regulation, employment and energy.

He will also call for the repatriation to Scotland of £800million now spent by the EU, and propose the Bank of England becomes the Bank of England, Scotland, Wales and Northern Ireland with fully-staffed representation in Scotland “to reinforce the fact that the pound is for everyone”.

“Our plan is for a confident, strong and optimistic nation willing to lead, not follow”