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Philip Hammond's Brexit worries point to cabinet tensions Philip Hammond's Brexit worries point to cabinet tensions
(35 minutes later)
The chancellor, Philip Hammond, has angered more pro-Brexit cabinet colleagues with his concerns over plans to swiftly restrict immigration from the EU, warning this could harm the economy, according to reports. The UK chancellor, Philip Hammond, has angered more pro-Brexit cabinet colleagues with his concerns over plans to swiftly restrict immigration from the EU, warning this could harm the economy, according to reports.
In a sign of apparent tensions within the cabinet over the balance between limiting immigration and keeping open access to the EU, unnamed cabinet sources briefed two newspapers about supposed worries over Hammond’s stance.In a sign of apparent tensions within the cabinet over the balance between limiting immigration and keeping open access to the EU, unnamed cabinet sources briefed two newspapers about supposed worries over Hammond’s stance.
The chancellor is said to have used a meeting last week of Theresa May’s cabinet Brexit committee to urge caution about a plan to force EU workers to show they have a guaranteed skilled job before they are allowed into Britain.The chancellor is said to have used a meeting last week of Theresa May’s cabinet Brexit committee to urge caution about a plan to force EU workers to show they have a guaranteed skilled job before they are allowed into Britain.
The plans, outlined to the committee by the home secretary, Amber Rudd, would mean continued free access for EU students and tourists but impose a skills-based work permit scheme for those seeking a job.The plans, outlined to the committee by the home secretary, Amber Rudd, would mean continued free access for EU students and tourists but impose a skills-based work permit scheme for those seeking a job.
One unnamed cabinet source described Hammond as “overly influenced by his Treasury officials who think it is a catastrophe that Britain voted to leave the EU”, the Telegraph reported.One unnamed cabinet source described Hammond as “overly influenced by his Treasury officials who think it is a catastrophe that Britain voted to leave the EU”, the Telegraph reported.
Another source told the paper: “He is arguing from a very Treasury point of view. He is arguing like an accountant seeing the risk of everything rather than the opportunity.”Another source told the paper: “He is arguing from a very Treasury point of view. He is arguing like an accountant seeing the risk of everything rather than the opportunity.”
The Times said Hammond’s intervention angered some more pro-Brexit ministers, and was seen as potential foot-dragging by the chancellor.The Times said Hammond’s intervention angered some more pro-Brexit ministers, and was seen as potential foot-dragging by the chancellor.
While the committee meeting, last Wednesday, was described as to float ideas rather than commit to definite proposals, the briefings and counter-briefings – Treasury sources said the idea of a row was “nonsense” – hints at potentially significant tensions within the government over how to proceed.While the committee meeting, last Wednesday, was described as to float ideas rather than commit to definite proposals, the briefings and counter-briefings – Treasury sources said the idea of a row was “nonsense” – hints at potentially significant tensions within the government over how to proceed.
The health secretary, Jeremy Hunt, did not deny that there had been differences of opinion over Brexit but played down their significance, saying the cabinet was “absolutely united” on the essentials of leaving the EU.The health secretary, Jeremy Hunt, did not deny that there had been differences of opinion over Brexit but played down their significance, saying the cabinet was “absolutely united” on the essentials of leaving the EU.
He does not sit on the Brexit committee but told BBC Radio 4’s Today programme that the briefings about did not signal a major problem: “On the contrary. If we weren’t having lively debates in cabinet, you would be saying, ‘What’s happened to cabinet government? Why aren’t you going through, incredibly thoroughly, all the different arguments to make sure we end up with the right decision.” Hunt does not sit on the Brexit committee but he told BBC Radio 4’s Today programme that the briefings did not signal a major problem: “On the contrary. If we weren’t having lively debates in cabinet, you would be saying, ‘What’s happened to cabinet government? Why aren’t you going through, incredibly thoroughly, all the different arguments to make sure we end up with the right decision.”
May’s Tory party conference speech was seen as favouring tighter immigration controls ahead of access to the bloc’s single market. May’s Conservative party conference speech was seen as favouring tighter immigration controls ahead of access to the bloc’s single market.
However, Hammond has called for what he describes as a more pragmatic view. In his conference speech, the chancellor said the UK needed to keep control of its borders “while protecting our economy, our jobs and our living standards”.However, Hammond has called for what he describes as a more pragmatic view. In his conference speech, the chancellor said the UK needed to keep control of its borders “while protecting our economy, our jobs and our living standards”.
Hammond’s concerns are mirrored elsewhere, with Ireland’s prime minister Enda Kenny calling a cross-border summit to examine the possible consequences of Brexit for his country. Hammond’s concerns are mirrored elsewhere, with Ireland’s prime minister, Enda Kenny, calling a cross-border summit to examine the possible consequences of Brexit for his country.
Separately, May is reported to be considering plans to protect Britain’s financial services industry after Brexit by seeking special measures for banks and insurers to keep their privileged “passporting” trade rights with the rest of the EU.Separately, May is reported to be considering plans to protect Britain’s financial services industry after Brexit by seeking special measures for banks and insurers to keep their privileged “passporting” trade rights with the rest of the EU.
The Financial Times cited unnamed senior ministers as saying May could commit Britain to still paying billions a year into the EU budget in return for keeping single market rights for certain sectors.The Financial Times cited unnamed senior ministers as saying May could commit Britain to still paying billions a year into the EU budget in return for keeping single market rights for certain sectors.
Any differences between ministers are likely to surface most strongly on the Brexit committee, whose 12 permanent members are split evenly between ministers who supported the leave and remain campaigns before the 23 June referendum.Any differences between ministers are likely to surface most strongly on the Brexit committee, whose 12 permanent members are split evenly between ministers who supported the leave and remain campaigns before the 23 June referendum.
But the briefings against Hammond indicate he is seen by staunch Brexiters as the biggest obstacle to their plans, with the anonymous sources contrasting his worries with the more “proactive” stance of Rudd, who also backed remain.But the briefings against Hammond indicate he is seen by staunch Brexiters as the biggest obstacle to their plans, with the anonymous sources contrasting his worries with the more “proactive” stance of Rudd, who also backed remain.
Business groups have expressed concerns about a block on unskilled labour from the EU, especially for industries such as farming which rely on flexible numbers of seasonal workers. Business groups have expressed concerns about a block on unskilled labour from the EU, especially for industries such as farming that rely on flexible numbers of seasonal workers.
Rudd is believed to be proposing exceptions to the bar on unskilled workers for those seeking seasonal work if there is a shortage of UK recruits.Rudd is believed to be proposing exceptions to the bar on unskilled workers for those seeking seasonal work if there is a shortage of UK recruits.
It comes as Michael Gove, the key leave campaigner now exiled to the Conservative backbenches, made a rare post-referendum foray on to the subject, to support his former close ally Boris Johnson. It comes as Michael Gove, the key leave campaigner now exiled to the Tory backbenches, made a rare post-referendum intervention on the subject in support of his former close ally Boris Johnson.
On Sunday, an unpublished column by Johnson emerged in which he argued for continued EU membership, a piece the foreign secretary said had been written as a tool for his own thought process. On Sunday, an unpublished column by Johnson emerged in which he argued for continued EU membership, an article the foreign secretary said had been written as a tool for his own thought process.
Gove used a series of tweets on Sunday evening to defend Johnson, with whom he fell out spectacularly after the referendum by suddenly launching his own, failed bid to succeed David Cameron. Gove used a series of tweets on Sunday evening to defend Johnson, with whom he fell out spectacularly after the referendum by unexpectedly launching his own, failed bid to succeed David Cameron.
“I am in no doubt Boris Johnson is and was 100% sincere and passionate about Britain leaving the EU – his conviction was clear,” Gove wrote. “It is never easy to take a different line from your party leader – especially on such a big issue – but Boris Johnson followed his heart.”
1/ I am in no doubt @BorisJohnson is and was 100% sincere and passionate about Britain leaving the EU - his conviction was clear1/ I am in no doubt @BorisJohnson is and was 100% sincere and passionate about Britain leaving the EU - his conviction was clear
2/ it is never easy to take a different line from your party leader - especially on such a big issue - but @BorisJohnson followed his heart2/ it is never easy to take a different line from your party leader - especially on such a big issue - but @BorisJohnson followed his heart