Recommendation 24

HM Government Acknowledged

The Government welcomes the Committee’s reflections on the steps it has taken to reset relations with the EU. As the PM, Chancellor and the Minister for the Cabinet Office have set out, one of the biggest prizes for Britain’s growth comes through deeper integration with the EU and through taking sovereign decisions in the national interest. That means bringing down barriers to trade for businesses and reducing the pressure on prices on supermarket shelves. Our new strategic partnership with the EU will deliver greater prosperity and security for the whole of the UK as well as reducing friction for Northern Ireland and supporting the internal market. The deal we struck with the EU at last year’s Summit will reduce trade barriers through the food and drink agreement and increase energy efficiency through cooperation on electricity trading. The agreement to link our Emissions Trading Schemes (ETSs) will also enable a cheaper transition to net zero through a larger and more stable carbon market which will support industry confidence to invest in new technologies and decarbonise more quickly. Combined these measures reduce costs for businesses, meaning better prices and more choice for consumers, and support for British jobs and livelihoods. The Government also welcomes the Committee’s support for the UK-EU Treaty on Gibraltar, which will bring legal certainty and secure prosperity for the people of Gibraltar and the wider region. It resolves the last major unresolved issue from Brexit and supports the continued development of stronger, closer relationships with the EU and Spain. A draft text of the Treaty was published on 26 February, and the Foreign, Commonwealth & Development Office Minister for Europe, North America and Overseas Territories gave an oral statement to the House the same day and appeared before the Committee on 20 April. We continue to engage with parliamentarians at every stage of this process. Since negotiations ended in December 2025, this Government and HM Government of Gibraltar, and the EU and Spain, have been working to complete their respective internal processes to finalise the Treaty and approve it for signature. As announced by the EU in their press release of 1 April, the EU decisions on provisional application and signature will be formally adopted by the EU Council as soon as their checks have concluded. The Agreement is expected to enter into provisional application 15 July. Parliament will have the opportunity to scrutinise the Treaty under the terms of the Constitutional Reform and Governance Act 2010 once it has been signed. In the interim, Gibraltarians crossing the border at La Linea remain unaffected by the roll-out of the EU’s Entry-Exit System on 10 April. UK nationals entering Gibraltar will only be subject to EES checks if they subsequently enter Spain, or any other Schengen country. Once the Treaty is applied and construction works complete, UK nationals will complete EES requirements at the airport with no checks at the land border. Meanwhile, implementation of the Treaty continues to proceed, with an expectation that the UK and EU will be able to ratify the Treaty in early 2027. The Government recognises parliamentarians’ interest in the Treaty, and the key role this Committee plays in scrutinising it. The Committee’s views on holding a debate on the Agreement will be conveyed to the Leader of the House, Chief Whip and Business Managers for consideration in the scheduling of parliamentary business. The Lancaster House summit and the new UK-EU Strategic Partnership The Government’s deal with the EU to extend access to British waters for EU fishing vessels by 12 years came as a surprise for many in the industry. Irrespective of the merits of the agreement, the Government should have consulted and managed expectations accordingly with the affected sectors ahead of the summit.