Statement regarding comments by Jacob Rees-Mogg and Steve Baker in House of Commons

1 February 2018: The Centre for European Reform would like to provide the following clarification following an exchange in the House of Commons involving Jacob Rees-Mogg and Steve Baker, Parliamentary Under Secretary of State at the Department for Exiting the European Union, which mentioned CER director Charles Grant.

During the exchange Jacob Rees-Mogg asked (see transcript/link below) Steve Baker to confirm that Charles Grant had told him that officials in the Treasury had “deliberately developed” an economic model to show that all options other than staying in the European Union’s customs union were bad, and that officials intended to use this to influence policy. In response Steve Baker said Jacob Rees-Mogg’s account was “essentially correct”, adding later that he had not sought to confirm the truth of it.

The CER would like to clarify that Charles Grant told Steve Baker at the Conservative Party Conference that he was aware of research carried out by the Treasury which apparently showed the economic benefits of free trade agreements with countries outside the EU were significantly less than the costs of leaving the customs union. Charles Grant did not say or imply that the Treasury had deliberately developed a model to show that all options outside the customs union were bad with an intention to influence policy.

“I recall saying to Steve Baker at a Prospect lunch at the Conservative Party Conference that I was aware of research that the Treasury had done. This apparently showed that the economic benefits of the UK forging FTAs with third countries outside the EU were significantly less than the economic costs of leaving the customs union. I did not say or imply that the Treasury had deliberately developed a model to show that all non-customs union options were bad, with the intention to influence policy,” Charles Grant said.

Prospect audio recording published by Prospect as a result of the statments made, 1 February 2018

Notes to Editors: For any further information please contact Nick Winning at the CER press office on +44 (0) 207 976 3429 or pressoffice@cer.eu
Verbatim of parliamentary exchange – (view here from 10.29)

Jacob Rees-Mogg: "Will my honourable friend the minister and member for Wycombe confirm that he heard from Charles Grant for the centre for European research that officials in the Treasury had deliberately developed a model to show that all options other than staying in the customs union were bad, and that officials intended to use this to influence policy? If this is correct does he share my view that it goes against the spirit of the Northcote-Trevelyan reforms that underpin our independent civil service?

Steve Baker: Mr Speaker I’m sorry to say that my honourable friend’s account is essentially correct. At the time I considered it implausible because my direct experience is that civil servants are extraordinarily careful to uphold the impartiality of the civil service. I think that we must proceed with great caution in this matter. But I have heard him raise this issue. I think that we need to be very careful not to take this forward in an inappropriate way but he has reminded me of something which I heard – I think it would be quite extraordinary if it turned out that such a thing had happened because it would... (inaudible question from elsewhere in house) The honourable gentleman says it was correct - I didn’t say it was correct. I said the account, the account that was put to me, Mr Speaker, is correct. It was put to me – I considered it an extraordinary allegation, Mr Speaker – I still consider it an extraordinary allegation and I think we must… I said it was correct that the point…  Mr Speaker to be absolutely clear I said it was correct that the allegation was put to me. I did not in any way seek to confirm the truth of it but what I would say is that we need to proceed with great caution because it is essential that we continue to uphold and support the impartiality of the civil service.”