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David Davis: UK may pay for access to EU single market David Davis: UK may pay for access to EU single market
(35 minutes later)
The UK would consider making payments to the EU after it leaves the bloc to secure the best possible access to the EU single market, Brexit Secretary David Davis has said.The UK would consider making payments to the EU after it leaves the bloc to secure the best possible access to the EU single market, Brexit Secretary David Davis has said.
Mr Davis told MPs the "major criterion" was getting the best access for goods and services to the European market.Mr Davis told MPs the "major criterion" was getting the best access for goods and services to the European market.
"And if that is included... then of course we would consider it.""And if that is included... then of course we would consider it."
But Brexit-backing Tory Peter Bone said "people would be absolutely outraged" if the UK continued to pay the EU.But Brexit-backing Tory Peter Bone said "people would be absolutely outraged" if the UK continued to pay the EU.
During his regular session facing MPs in the Commons, Mr Davis was asked a number of questions about the shape of the future Brexit deal, including one from Labour MP Wayne David, who said: "Will the government consider making any contribution in any shape or form for access to the single market?"During his regular session facing MPs in the Commons, Mr Davis was asked a number of questions about the shape of the future Brexit deal, including one from Labour MP Wayne David, who said: "Will the government consider making any contribution in any shape or form for access to the single market?"
Mr Davis replied: "The major criterion here is that we get the best possible access for goods and services to the European market - and if that is included in what you are talking about, then of course we will consider it."Mr Davis replied: "The major criterion here is that we get the best possible access for goods and services to the European market - and if that is included in what you are talking about, then of course we will consider it."
His comments prompted sterling to rise by 1% to $1.26 against the dollar.His comments prompted sterling to rise by 1% to $1.26 against the dollar.
But Mr Bone told the BBC: "People will be absolutely outraged if we came out of the EU and then carried on paying them £15bn a year, £20bn a year, whatever the figure is - no I don't think it's going to happen. In that very hypothetical case people will be exceptionally upset about it. But it's just not going to happen."But Mr Bone told the BBC: "People will be absolutely outraged if we came out of the EU and then carried on paying them £15bn a year, £20bn a year, whatever the figure is - no I don't think it's going to happen. In that very hypothetical case people will be exceptionally upset about it. But it's just not going to happen."
'Absolutely right'
However, Chancellor Philip Hammond backed Mr Davis, saying: "You can't go into any negotiation expecting to get every single objective that you set out with and concede nothing along the way - it will have to be a deal that works for both sides.However, Chancellor Philip Hammond backed Mr Davis, saying: "You can't go into any negotiation expecting to get every single objective that you set out with and concede nothing along the way - it will have to be a deal that works for both sides.
"I think David Davis is absolutely right not to rule out the possibility that we might want to contribute in some way to some form of mechanism.""I think David Davis is absolutely right not to rule out the possibility that we might want to contribute in some way to some form of mechanism."
But prominent Leave campaigner and former Conservative cabinet minister Iain Duncan Smith played down the implications of Mr Davis' comments, saying he had been simply not ruling anything in or out of the government's Brexit negotiations.But prominent Leave campaigner and former Conservative cabinet minister Iain Duncan Smith played down the implications of Mr Davis' comments, saying he had been simply not ruling anything in or out of the government's Brexit negotiations.
"I don't think there's any way in which you can reach a deal where you can say 'I'll pay some money in and therefore you allow us access' because you might as well have tariff barriers," he told BBC Radio 4's World at One programme."I don't think there's any way in which you can reach a deal where you can say 'I'll pay some money in and therefore you allow us access' because you might as well have tariff barriers," he told BBC Radio 4's World at One programme.
'Strange' negotiations
And Labour leader Jeremy Corbyn was sceptical about Mr Davis's suggestion. "The idea of paying for access? I'm not really sure what that means," he said.
"If Europe puts tariff barriers against products coming from Britain, the government's going to pay all the tariffs - that sounds a very strange way of entering the negotiations when you're trying to get market access both ways... It doesn't sound a very well thought-out policy."
But pro-Remain former minister Sir Oliver Letwin welcomed the idea.But pro-Remain former minister Sir Oliver Letwin welcomed the idea.
"It's very sensible to try to make sure that we can go on selling, for example, stocks and bonds and insurance products from the City of London which is dominant in Europe to the rest of Europe - and we'll have to find some way of going on doing that when we leave the EU," he said. "It's very sensible to try to make sure that we can go on selling, for example, stocks and bonds and insurance products from the City of London which is dominant in Europe to the rest of Europe - and we'll have to find some way of going on doing that when we leave the EU," he told BBC Radio 4's World at One.
"And if that involves a contribution to EU funds - if it's not too great a contribution - it may well be worth paying.""And if that involves a contribution to EU funds - if it's not too great a contribution - it may well be worth paying."
What is the single market?What is the single market?
In the early 1990s the European common market grew into the single market we know today.In the early 1990s the European common market grew into the single market we know today.
At its heart is a free trade area, which is a market where there are no tariffs or taxes on trade between countries. While its members can trade freely with each other, they also impose common tariffs on imports from non-EU countries.At its heart is a free trade area, which is a market where there are no tariffs or taxes on trade between countries. While its members can trade freely with each other, they also impose common tariffs on imports from non-EU countries.
Being a member of the single market means a country gets the benefit of any trade deal struck between the EU and other countries - the flip side is that member states cannot set their own tariffs.Being a member of the single market means a country gets the benefit of any trade deal struck between the EU and other countries - the flip side is that member states cannot set their own tariffs.
But the EU's single market is much more than a straightforward free trade area, because it also includes the free movement of goods, people and capital.But the EU's single market is much more than a straightforward free trade area, because it also includes the free movement of goods, people and capital.
Crucial to the single market is a common framework of regulations that mean companies in countries such as the UK, France, Italy or Poland have to abide by common standards - whether they trade across the EU or not. That is to stop one business or country having an unfair advantage. Most countries in the single market also have a single currency - the euro - but the UK did not adopt it.Crucial to the single market is a common framework of regulations that mean companies in countries such as the UK, France, Italy or Poland have to abide by common standards - whether they trade across the EU or not. That is to stop one business or country having an unfair advantage. Most countries in the single market also have a single currency - the euro - but the UK did not adopt it.
Reality Check: Who has access to the single market?Reality Check: Who has access to the single market?
The prime minister's spokeswoman said the Brexit secretary had only been repeating government policy on leaving the EU.The prime minister's spokeswoman said the Brexit secretary had only been repeating government policy on leaving the EU.
"What he said in the House this morning is consistent with what we have said ... that it will be for the UK government to make decisions on how taxpayers' money will be spent," she said."What he said in the House this morning is consistent with what we have said ... that it will be for the UK government to make decisions on how taxpayers' money will be spent," she said.
"As we approach these negotiations we want to get the best possible access for British business to trade with, and operate within, the single market, while also taking back control of immigration. We are now doing the work to prepare for those negotiations.""As we approach these negotiations we want to get the best possible access for British business to trade with, and operate within, the single market, while also taking back control of immigration. We are now doing the work to prepare for those negotiations."
Also during the morning Commons exchanges Hilary Benn, the Labour chairman of the Commons Brexit Committee, urged the government to publish details of its negotiating plans, claiming MPs were "fed up" at the lack of detail.Also during the morning Commons exchanges Hilary Benn, the Labour chairman of the Commons Brexit Committee, urged the government to publish details of its negotiating plans, claiming MPs were "fed up" at the lack of detail.
Mr Davis argued that "the probable success of the negotiations depend very greatly on us being able to manage the information and keep what needs to be secret until the last minute secret".Mr Davis argued that "the probable success of the negotiations depend very greatly on us being able to manage the information and keep what needs to be secret until the last minute secret".
Liberal Democrat leader Tim Farron accused the government of "sending mixed signals" and of being "in an absolute mess".Liberal Democrat leader Tim Farron accused the government of "sending mixed signals" and of being "in an absolute mess".
Urging a vote on any future Brexit deal, he added: "How can the government claim they have a mandate for their Brexit deal when they don't even know what it is themselves?"Urging a vote on any future Brexit deal, he added: "How can the government claim they have a mandate for their Brexit deal when they don't even know what it is themselves?"
But Conservative Steve Baker, who chairs the European Research Group of Tory MPs, insisted that paying for market access "would not be free trade", adding that "the government is right not to speculatively rule ideas in or out, however left field those ideas may be.
"Ministers' comments seem to have been over-interpreted. I am not concerned."
During his Commons appearance, Mr Davis confirmed that Article 50, which sparks the formal legal process for leaving the EU, would be triggered by 31 March, 2017.During his Commons appearance, Mr Davis confirmed that Article 50, which sparks the formal legal process for leaving the EU, would be triggered by 31 March, 2017.
He also indicated the government was open to some form of transitional arrangement with the EU as part of its Brexit strategy. The government is seeking "a smooth and orderly exit" from the EU, he said, adding: "It would not be in the interests of either side, Britain or the European Union, to see disruption," he said.
"We are seeking to ensure a smooth and orderly exit from the European Union, and it would not be in the interests of either side, Britain or the European Union, to see disruption," he said.
"To that end, we're examining all possible options, focusing on the mutual interests of the UK and the European Union.""To that end, we're examining all possible options, focusing on the mutual interests of the UK and the European Union."
The Brexit secretary also defended Foreign Secretary Boris Johnson, who according to Sky News had privately told four EU ambassadors he backed free movement.The Brexit secretary also defended Foreign Secretary Boris Johnson, who according to Sky News had privately told four EU ambassadors he backed free movement.
Mr Davis said the comments were "at odds" with what he knew of Mr Johnson's views.Mr Davis said the comments were "at odds" with what he knew of Mr Johnson's views.
'Kiss of death''Kiss of death'
"He believes very clearly - and he made this very clear in the Leave campaign because he was a much more major part of it than I was. - that some immigration is useful. We all agree on that," he said."He believes very clearly - and he made this very clear in the Leave campaign because he was a much more major part of it than I was. - that some immigration is useful. We all agree on that," he said.
"That's not the same as thinking free movement of people as it now stands is a good idea. It's a problem.""That's not the same as thinking free movement of people as it now stands is a good idea. It's a problem."
And speaking from Rome, Mr Johnson insisted he had told the ambassadors during a breakfast meeting "that immigration had been a good thing for the UK in many respects - but it had got out of control and that we needed to take back control. I think you will find the record reflects that".And speaking from Rome, Mr Johnson insisted he had told the ambassadors during a breakfast meeting "that immigration had been a good thing for the UK in many respects - but it had got out of control and that we needed to take back control. I think you will find the record reflects that".
Meanwhile in the House of Lords, Labour's Lord Liddle, a former adviser to Tony Blair, called for Britain to remain in the European single market after Brexit.Meanwhile in the House of Lords, Labour's Lord Liddle, a former adviser to Tony Blair, called for Britain to remain in the European single market after Brexit.
Opening a debate on the UK's future relationship with the EU, Lord Liddle branded Brexit the "worst disaster for the UK since appeasement" in the 1930s.Opening a debate on the UK's future relationship with the EU, Lord Liddle branded Brexit the "worst disaster for the UK since appeasement" in the 1930s.
Plaid Cymru's Lord Wigley urged the government not to take the UK out of the single market which, he said, would be "the kiss of death" for farmers in Wales.Plaid Cymru's Lord Wigley urged the government not to take the UK out of the single market which, he said, would be "the kiss of death" for farmers in Wales.
Independent crossbencher Lord Ricketts, former head of the diplomatic service and ex-ambassador to France, said the mood in Europe was not to "punish" the UK but of "great sadness that a country that has done so much for peace and prosperity on the continent should be turning its back on this project at a time of such turbulence and danger in the world".Independent crossbencher Lord Ricketts, former head of the diplomatic service and ex-ambassador to France, said the mood in Europe was not to "punish" the UK but of "great sadness that a country that has done so much for peace and prosperity on the continent should be turning its back on this project at a time of such turbulence and danger in the world".