Sunak marks Brexit anniversary by claiming benefits ’empower communities’ as IMF delivers damning growth forecast
Good morning. At 11pm the UK will mark the third anniversary of the moment that it left the European Union. Increasingly, by a margin of around 60% to 40%, Britons are saying that this was a mistake, but in the Conservative party conceding anything like this would amount to a thought crime, such is the grip the Brexiters have on the party, and instead ministers are marking the anniversary by talking up the supposed benefits.

Still, what the government is saying about Brexit is still considerably less upbeat than what Boris Johnson and his colleagues were saying, or promising, this time three years ago. This is what Rishi Sunak said about the anniversary in a statement released overnight.
In the three years since leaving the EU, we’ve made huge strides in harnessing the freedoms unlocked by Brexit to tackle generational challenges. Whether leading Europe’s fastest vaccine rollout, striking trade deals with over 70 countries or taking back control of our borders, we’ve forged a path as an independent nation with confidence.
And in my first 100 days as prime minister, that momentum hasn’t slowed – we’re cutting red tape for businesses, levelling up through our freeports, and designing our own, fairer farming system to protect the British countryside.
This is just the beginning of our plans to deliver on our five priorities, including growing the economy so we can create better paid jobs, and I’m determined to ensure the benefits of Brexit continue to empower communities and businesses right across the country.
But it is not a good day to be going on about growing the economy, with the IMF saying it expects the UK to be the only G7 country where the economy will shrink this year. My colleague Graeme Wearden has been covering the reaction to this on his business live blog.
Here is the agenda for the day.
Morning: Rishi Sunak chairs cabinet.
10am: Philippa Hird, chair of the NHS pay review body, gives evidence to the Commons health committee.
11.30am: Downing Street holds a lobby briefing.
11.30am: James Cleverly, the foreign secretary, takes questions in the Commons.
After 12.30pm: MPs debate Labour motions, first on neighbourhood policing, and then on a binding demand for the government to publish whatever analysis it did before the autumn statement on the case for abolishing non-dom status.
2.30pm: Antonia Romeo, permanent secretary at the Ministry of Justice, and other officials give evidence to the Commons justice committee on the work of the department.
4.30pm: Jeremy Hunt, the chancellor, is due to speak to Tory MP at the 1922 Committee.
I’ll try to monitor the comments below the line (BTL) but it is impossible to read them all. If you have a direct question, do include “Andrew” in it somewhere and I’m more likely to find it. I do try to answer questions, and if they are of general interest I will post the question and reply above the line (ATL), although I can’t promise to do this for everyone.
If you want to attract my attention quickly, it is probably better to use Twitter. I’m on @AndrewSparrow.
Alternatively, you can email me at andrew.sparrow@theguardian.com
Key events
Filters BETA
Rees-Mogg says Sunak doing ‘perfectly competently’ as he criticises government over NI protocol and anti-strikes bills
Jacob Rees-Mogg, the former business secretary, was not exactly on message in his Sky News interview with Kay Burley this morning. As well as implying that he thought the bullying inquiry into Dominic Raab was a mistake (see 10.37am), he made at least three other comments that suggest Rishi Sunak does not have the enthusiastic support of all his backbenchers.
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Rees-Mogg said that Sunak was performing “perfectly competently” as PM. Asked how he was doing, Rees-Mogg replied: “I think he’s doing perfectly competently.” When Burley put it to him that that was not much of an endorsement, Rees-Mogg went on: “I made no bones about the fact I thought Boris Johnson was a better prime minister and I wanted him to remain.”
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Rees-Mogg criticised the government for stalling the Northern Ireland protocol bill. The bill, which is popular with hardline Brexiters but widely seen as contrary to international law, because it would allow the UK to unilaterally ignore some of the provisions in the protocol treaty, passed through the Commons when Boris Johnson was PM. But it is stuck in the Lords, where it has not been debated since October and where a date has not been set for its report stage. Sunak has shelved it because he wants to negotiate a compromise on the protocol with the EU, and passing the bill would make agreement much harder. But Rees-Mogg said the government should pass it. He said:
The government has just got to get on with it. There’s a bill that has been through the House of Commons that is waiting its report stage in the House of Lords and I don’t understand why the government hasn’t brought it forward.
On Sky News this morning he repeated the argument, saying the bill contained a “very wide Henry VIII power” and that this was “not good legislative practice”.
Rees-Mogg is right about this. This is what the legal commentator Joshua Rozenberg said in a good blog about the bill.
The government doesn’t know what changes it will have to make once this bill is passed. Under clause 3, the secretary of state would be able to make regulations that “amend, repeal or revoke provision made by or under primary legislation passed before this act or later in the same session of parliament as this act”. This is a supercharged Henry VIII clause. Why should MPs or peers pay any attention to any related legislation that may be brought before them later in this session when they know that, unless they object, a secretary of state may simply amend, repeal or revoke it?


The Treasury will have to answer an urgent question from Labour on the economy at 12.30pm. Rachel Reeves, the shadow chancellor, will be hoping to get Jeremy Hunt to the dispatch box, but she may get a more junior Treasury minister.
FROM 1230 TODAY…
Urgent Question granted to @RachelReevesMP to ask the Chancellor for a statement on the IMF Economic Outlook
— Labour Whips (@labourwhips) January 31, 2023
Faisal Islam, the BBC’s economics editor, says that while Brexit may be one reason why the IMF growth forecast for the UK is so poor, other factors may be more significant.
much feedback saying “Brexit”
1. The IMF dont say that themselves.
2. A forecast is a forecast, hasn’t happened yet.But…worse inflation & growth performance & trade off between them, was predicted by most economists, with less competition/ more barriers for trade & workers
— Faisal Islam (@faisalislam) January 31, 2023
Ie this the sort of pattern Brexitsceptics predicted.
But still likely so far impact of pandemic/ lockdowns/ russia energy shock towers over as immediate economic performance driver
If inflation stickier and growth more sluggish this year onwards Brexit impact plausible reason
— Faisal Islam (@faisalislam) January 31, 2023
Eg Bank of England publicly asking why workforce has not fully returned after pandemic, unlike other major econs… that certainly would dampen growth & leave inflation stickier… & while fewer EU workers in relevant industries is a factor, not the only one, may not be the biggest
— Faisal Islam (@faisalislam) January 31, 2023
Civil service morale declining, says thinktank, as Rees-Mogg says dismisses ‘snowflakey’ approach to bullying claims
Jacob Rees-Mogg, the former business secretary, told Sky News this morning that people should not be too “snowfakey” about the claims that Dominic Raab, the justice secretary and deputy PM, bullied civil servants in three of his previous ministerial appointments. Those allegations are now the subject of an investigation that could lead to Raab losing his job.
Rees-Mogg said:
We have to be slightly careful around the bullying allegations but also we mustn’t be too snowflakey about it. People need to be able to say this job has not been done well enough and needs to be done better.
My colleague Jamie Grierson has the story here.
Rees-Mogg spoke at the Institute for Government thinktank published its annual Whitehall monitor, which monitors the performance of the civil service and suggests that it would be a mistake for ministers to get complacent about the morale of civil servants. Here are some of the key findings.
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Turnover in the civil service has reached its highest level for at least a decade, the report says. It says between March 2021 and March 2022 13.6% of civil servants either moved between departments or left the civil service entirely.
The civil service goes into 2023 with record levels of turnover, declining morale and disrupted by widespread industrial action. Much is to be done to repair the relationship between ministers and officials, still strained by unresolved disputes over pay and the workforce, hostile press briefings against civil servants and the reverberations of the ‘partygate’ scandal that erupted a year ago. Public trust in both ministers and civil servants continues to get worse.
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Fewer than half of civil servants say their organisation motivates them to help meet its objectives, the report says. In 2021 51% said they were motivated, but last year that figure went down to 41%.
Hancock flounders in TV interview as he claims lockdown embrace that led to his resignation wasn’t breach of law
Matt Hancock, the former health secretary, gave an interview to Good Morning Britain this morning. As my colleague Jessica Elgot reports, he claimed that he did not “primarily” go on I’m a Celebrity … Get Me Out of Here! for his £320,000 fee.
But the highlight of the interview came when Susanna Reid, the presenter, put it to him that the embrace with Gina Coladangelo (at the time his adviser, now his partner) in his office that led to his resignation was not just against Covid guidelines at the time, but against the law too. Hancock refused to accept this, but he floundered badly, and could not refute what Reid was saying. Here is the clip.
Adam Wagner, the barrister and expert in Covid lockdown law, says Reid was right.
I hadn’t realised, as Matt Hancock seems to have just admitted on @GMB, that the image of him was taken on 6th May 2021, when we were still in step 2. This w meant any gathering of more than one person indoors for social purposes was prohibited by law https://t.co/NbVmWzxhnk
— Adam Wagner (@AdamWagner1) January 31, 2023
Of course, the consensus amongst economists is that Brexit has been harmful to the UK economy. An analysis by Bloomberg Economics says it is costing the economy £100bn a year in lost output.
Brexit is costing the UK economy £100 billion a year, with the effects spanning everything from business investment to the ability of companies to hire workers https://t.co/AlquaJzcwT
— Bloomberg UK (@BloombergUK) January 31, 2023
And my colleague Polly Toynbee has a withering assessment of the decision to leave the EU in her Guardian column today. Here’s an extract:
Look what Brexit has done: a 4% shrinkage in long-run productivity relative to remaining in the EU, expects the Office for Budget Responsibility, inflation and energy prices are higher than in the EU, trade has fallen by almost a fifth, while the government itself says the much-trumpeted Australian deal will raise GDP by less than 0.1% a year by 2035. Brexit has raised food prices by 6% says the LSE, while draining the workforce. Eurostar also deliberately leaves a third of seats empty due to crippling EU/UK border delays.
The Brexit press can’t hide these inconvenient truths. Jeremy Warner, the Telegraph’s associate editor, challenges Jeremy Hunt’s bizarrely Pollyanna-ish assessment of the economy, writing “trade with our European neighbours is faltering badly,” due to Brexit, with “the rather awkward fact that the UK is the only G7 economy yet to recover to its pre-pandemic size”. “The grim reality is that the country seems to be falling apart on almost every front” and “car production has fallen to its lowest since the 1950s”.
And you can read the full column here.
Why No 10 claims Brexit contributing to growth agenda
In its statement about the Brexit anniversary released overnight, Downing Street says Brexit is “a huge opportunity to deliver on the prime minister’s priorities to the British public”. And it identifies five areas where it claims Brexit is contributing to the growth agenda. It says:
Freeports: From Plymouth to Teesside, eight freeports across England are now open for business, galvanising emerging sectors from manufacturing to renewable energy and delivering jobs and prosperity in areas that need it the most. Crucial to the ambitious levelling up agenda, two new green freeports will be established in Scotland – expected to bring £10.8 billion of public and private investment and creating over 75,000 high-skilled jobs – while we will announce plans for at least one freeport in Wales in the coming months.
Edinburgh Reforms: In addition to the financial services and markets bill and reforming Solvency II, the government is taking advantage of the UK’s position outside the EU and going further through the Edinburgh Reforms to ensure the UK’s financial services sector is dynamic, sustainable and globally competitive – supporting businesses and powering growth right across the country.
REUL [retained EU law]: Regulatory reform is a key area where the UK can develop a competitive advantage in order to grow the economy. That’s why the prime minister recently reaffirmed the government’s commitment to review, reform, repeal or replace all retained EU law – as part of a collective cabinet drive – to boost innovation, accelerate our economic recovery and deliver tangible benefits to businesses, whilst maintaining world-leading workers’ rights and environmental protections.
R&D: While the UK continues to push for association to the Horizon Europe, we are working hard on developing a domestic alternative to progress the UK’s key strategic priorities for science and technology and to enhance collaboration with science superpowers around the globe, such as Japan and Switzerland.
UK Subsidy Regime: A new system to regulate the award of subsidies to business came into force at the start of the month. This represents the most significant change in subsidy administration in over 40 years and gets rid of unnecessary EU bureaucracy.
Brexit is a ‘complete disaster’ and ‘total lies’, says Tory billionaire
Guy Hands, a leading financier and a former Tory donor, gave a very different take on Brexit to Rishi Sunak’s in an interview on the Today programme this morning. He said:
It’s been a complete disaster. The reality is it’s been a lose-lose situation for us and Europe. Europe has lost more [in financial services] but we’ve lost as well. And the reality of Brexit was, it was just was a bunch of complete and total lies.
The only way that the Brexit put forward by Boris Johnson was going to work was if there was a complete deregulation of the UK and we moved to a sort of Liz Truss utopia of a Singapore state and that was just never going to happen.
My colleague Julia Kollewe has the full story here.
Sunak marks Brexit anniversary by claiming benefits ’empower communities’ as IMF delivers damning growth forecast
Good morning. At 11pm the UK will mark the third anniversary of the moment that it left the European Union. Increasingly, by a margin of around 60% to 40%, Britons are saying that this was a mistake, but in the Conservative party conceding anything like this would amount to a thought crime, such is the grip the Brexiters have on the party, and instead ministers are marking the anniversary by talking up the supposed benefits.

Still, what the government is saying about Brexit is still considerably less upbeat than what Boris Johnson and his colleagues were saying, or promising, this time three years ago. This is what Rishi Sunak said about the anniversary in a statement released overnight.
In the three years since leaving the EU, we’ve made huge strides in harnessing the freedoms unlocked by Brexit to tackle generational challenges. Whether leading Europe’s fastest vaccine rollout, striking trade deals with over 70 countries or taking back control of our borders, we’ve forged a path as an independent nation with confidence.
And in my first 100 days as prime minister, that momentum hasn’t slowed – we’re cutting red tape for businesses, levelling up through our freeports, and designing our own, fairer farming system to protect the British countryside.
This is just the beginning of our plans to deliver on our five priorities, including growing the economy so we can create better paid jobs, and I’m determined to ensure the benefits of Brexit continue to empower communities and businesses right across the country.
But it is not a good day to be going on about growing the economy, with the IMF saying it expects the UK to be the only G7 country where the economy will shrink this year. My colleague Graeme Wearden has been covering the reaction to this on his business live blog.
Here is the agenda for the day.
Morning: Rishi Sunak chairs cabinet.
10am: Philippa Hird, chair of the NHS pay review body, gives evidence to the Commons health committee.
11.30am: Downing Street holds a lobby briefing.
11.30am: James Cleverly, the foreign secretary, takes questions in the Commons.
After 12.30pm: MPs debate Labour motions, first on neighbourhood policing, and then on a binding demand for the government to publish whatever analysis it did before the autumn statement on the case for abolishing non-dom status.
2.30pm: Antonia Romeo, permanent secretary at the Ministry of Justice, and other officials give evidence to the Commons justice committee on the work of the department.
4.30pm: Jeremy Hunt, the chancellor, is due to speak to Tory MP at the 1922 Committee.
I’ll try to monitor the comments below the line (BTL) but it is impossible to read them all. If you have a direct question, do include “Andrew” in it somewhere and I’m more likely to find it. I do try to answer questions, and if they are of general interest I will post the question and reply above the line (ATL), although I can’t promise to do this for everyone.
If you want to attract my attention quickly, it is probably better to use Twitter. I’m on @AndrewSparrow.
Alternatively, you can email me at andrew.sparrow@theguardian.com

