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Cameron accused of 'secret deals' with business over EU vote Johnson and Cameron at odds over EU business backing
(about 1 hour later)
Vote Leave has attacked David Cameron after a leaked letter suggested he met a leading business figure in February to discuss how corporate support for the EU membership could be "mobilised". Boris Johnson has accused David Cameron of a "stitch-up" in a row over business leaders' role in the EU referendum.
Serco boss Rupert Soames offered to encourage firms to flag up the risks of leaving the EU in their annual reports. A leaked letter has suggested the prime minister met a leading business figure in February, before he concluded his EU renegotiations, to discuss how support for EU membership could be "mobilised".
Vote Leave said No 10 was doing "secret deals" with its "rich friends" to exaggerate the risks of leaving the EU. Mr Johnson said it showed his reform efforts were a "meaningless ritual".
The prime minister has always insisted his aim was to stay in a reformed EU. But the prime minister said his deal had addressed "frustrations" with EU red tape, integration and the eurozone.
The Leave campaign says it has the backing of more than 300 business leaders for its cause but speaking in London, Mr Cameron said they were "losing the argument" and there was a "clear consensus" that leaving the EU would be damaging for British jobs and livelihoods.
In other EU developments:In other EU developments:
Mr Cameron is leading the campaign for the UK to stay in the EU in the 23 June referendum, having secured what he said was a good deal for Britain at a crunch EU meeting on 19 February.Mr Cameron is leading the campaign for the UK to stay in the EU in the 23 June referendum, having secured what he said was a good deal for Britain at a crunch EU meeting on 19 February.
During the nine months of negotiations which preceded the high-stakes summit, David Cameron insisted that if he got the concessions he wanted to the UK's membership, he would campaign to remain in the EU but if he did not he would "rule nothing out".During the nine months of negotiations which preceded the high-stakes summit, David Cameron insisted that if he got the concessions he wanted to the UK's membership, he would campaign to remain in the EU but if he did not he would "rule nothing out".
Vote Leave, the main cross-party group backing EU exit, said the PM had long made up his mind and was "orchestrating" the EU campaign well before the support of the EU's other 27 members had been secured for the UK's changes.Vote Leave, the main cross-party group backing EU exit, said the PM had long made up his mind and was "orchestrating" the EU campaign well before the support of the EU's other 27 members had been secured for the UK's changes.
It follows the publication of a letter by the Daily Mail from Mr Soames to the prime minister on 8 February, in which he refers to a meeting with Mr Cameron the week before.It follows the publication of a letter by the Daily Mail from Mr Soames to the prime minister on 8 February, in which he refers to a meeting with Mr Cameron the week before.
Mr Soames, whose brother is the pro-EU Tory MP Nicholas Soames, wrote he was working with Lord Rose - chair of the Britain Stronger in Europe campaign group - and Lord Chadlington, a long-term ally of Mr Cameron's - with a view to contacting some of the UK's largest firms to persuade them to highlight the perceived risks of leaving the EU in annual reports released before the 23 June poll.Mr Soames, whose brother is the pro-EU Tory MP Nicholas Soames, wrote he was working with Lord Rose - chair of the Britain Stronger in Europe campaign group - and Lord Chadlington, a long-term ally of Mr Cameron's - with a view to contacting some of the UK's largest firms to persuade them to highlight the perceived risks of leaving the EU in annual reports released before the 23 June poll.
"Thank you for a very useful meeting last week," he wrote. "There were two points I thought I might follow up on."Thank you for a very useful meeting last week," he wrote. "There were two points I thought I might follow up on.
"The first is how to mobilise corporates to look carefully at the risks Brexit represents... All public companies are required to set out in their Annual Report an analysis of key risks. During the Scottish referendum campaign, we managed to garner a lot of publicity as a series of companies formally stated in their annual reports that independence for Scotland was a major risk.""The first is how to mobilise corporates to look carefully at the risks Brexit represents... All public companies are required to set out in their Annual Report an analysis of key risks. During the Scottish referendum campaign, we managed to garner a lot of publicity as a series of companies formally stated in their annual reports that independence for Scotland was a major risk."
'Do down Britain''Do down Britain'
In his letter, Mr Soames also raised the issues of prison reform and the case for greater private sector involvement in the running of prisons. Serco currently operates six adult prisons in the UK and one juvenile training centre.In his letter, Mr Soames also raised the issues of prison reform and the case for greater private sector involvement in the running of prisons. Serco currently operates six adult prisons in the UK and one juvenile training centre.
Mr Soames said the state ran 85% of the prison estate and this was a "wasted opportunity".
The letter was written on the same day Mr Cameron made a speech promising the "biggest shake-up of prisons since the Victorian era", including piloting six "reform prisons" to tackle high levels of violence and re-offending.The letter was written on the same day Mr Cameron made a speech promising the "biggest shake-up of prisons since the Victorian era", including piloting six "reform prisons" to tackle high levels of violence and re-offending.
Vote Leave said the letter showed Downing Street was "orchestrating a campaign to do down Britain" and that Mr Cameron had decided to back staying in the EU whatever the outcome of February's summit. Vote Leave said the letter showed Downing Street "had been doing deals with businesses to exaggerate the risk of a vote to leave the EU".
"Yesterday George Osborne accused the Leave campaign of inventing conspiracies," said Gisela Stuart, the Labour MP who chairs the campaign group. "Today we see that David Cameron is knee deep in one. Mr Johnson, a leading Tory Leave campaigner, said it illustrated that the PM's negotiations had "biggest stitch-up since the Bayeux Tapestry".
"We now know he has been doing deals with businesses to exaggerate the risk of a vote to leave the EU. He must now tell us urgently how many businesses he has cut secret deals with. Who are they and what were they promised in return?" "We learn that some fat cats have been secretly agreeing to campaign for Remain while angling for lavish government contracts," he added.
'Leverage' "It makes us look like a banana republic. And it is also now beyond doubt that the so-called renegotiation was a fiction designed to bamboozle the public. It was a meaningless mime, a ritual, a kabuki drama in which the outcome was utterly preordained."
Ms Stuart also accused Mr Soames of using his support for remaining in the EU as "leverage to lobby for his own business interests". 'Facts and figures'
Tory MP Steve Baker said there was "a coordinated attempt going on to doctor company reports and use them as campaigning documents".
Both No 10 and Serco said they would not comment on the details of a leaked letter. The company, which had a turnover of £3.5bn last year and more than £100m in contracts with EU institutions, has said before that leaving the EU would be a risk to its business.Both No 10 and Serco said they would not comment on the details of a leaked letter. The company, which had a turnover of £3.5bn last year and more than £100m in contracts with EU institutions, has said before that leaving the EU would be a risk to its business.
Separately, Sky News reported that the CBI has mobilised dozens of businesses to write to employees explaining why their bosses want to remain ahead of the 23 June poll. Speaking to business leaders in London, Mr Cameron said they should "feel free" to speak out on either side of the argument and not be cowed by the politicised nature of the debate.
"The British public deserve to hear from business, large and small, about what they think," he said. "I don't want anyone to wake up on 24 June and feel they were not given the facts and the figures."
Sky News reported that the CBI has mobilised dozens of businesses to write to employees explaining why their bosses want to remain ahead of the 23 June poll.
Carolyn Fairbairn, the organisation's director general, said the move was "not about telling people how to vote" but rather an effort by "responsible business leaders" to explain to staff the effect Brexit would have on their companies and their livelihoods.Carolyn Fairbairn, the organisation's director general, said the move was "not about telling people how to vote" but rather an effort by "responsible business leaders" to explain to staff the effect Brexit would have on their companies and their livelihoods.
Several businesses, including Airbus, have already said they would be contacting employees of their own accord to set out their views.Several businesses, including Airbus, have already said they would be contacting employees of their own accord to set out their views.
Former British Chambers of Commerce boss John Longworth said it was an "anti democratic abuse of power" from an organisation which "supported the ERM and the single currency".Former British Chambers of Commerce boss John Longworth said it was an "anti democratic abuse of power" from an organisation which "supported the ERM and the single currency".