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Prime minister vows to put final Brexit deal before parliament May’s Brexit threat to Europe: 'no deal for Britain is better than a bad deal'
(about 9 hours later)
Theresa May has committed to putting the final Brexit deal to a vote in parliament in a speech on the UK’s future relationship with the European Union, and insisted that if she failed to get what she wanted no deal would be better than a bad deal. Theresa May warned European leaders that the UK is prepared to crash out of the EU if she cannot negotiate a reasonable exit deal in a speech where her tough talking rhetoric prompted key figures in Brussels to say that the country was on track for a “hard Brexit”.
The prime minister’s pledge to hold votes in both the Commons and the Lords came alongside a stark warning to European countries that any attempt to inflict a punitive deal on the UK would be an act of “calamitous self-harm”. The prime minister told EU counterparts that any attempt to inflict a punitive outcome on the UK would be an “act of calamitous self-harm” because it would then slash taxes to attract companies from across the world, in a one-hour address intended to spell out the country’s negotiating strategy.
“No deal for Britain is better than a bad deal for Britain,” she said, threatening to slash taxes to attract companies and investors if the UK fails to negotiate a positive deal with EU. However, May said she was “confident that this scenario need never arise”. Although May said that the UK could be the EU’s “best friend” if the article 50 divorce talks went well, she also said she was prepared to walk away. “And while I am confident that this scenario need never arise – while I am sure a positive agreement can be reached – I am equally clear that no deal for Britain is better than a bad deal for Britain,” she said.
In the most important speech of her premiership so far, the Conservative leader made clear that she would be pursuing what critics have labelled a hard Brexit, in which there would be no halfway house, and where regaining immigration control and sovereignty would trump economic access for ministers. Eurosceptic ministers and backbenchers were quick to praise May, but her remarks also triggered a backlash from lead European parliament negotiator on Brexit, Guy Verhofstadt. “Britain has chosen a hard Brexit. May’s clarity is welcome – but the days of UK cherry-picking and Europe a la cart [sic] are over,” he said.
She said her government’s 12 priorities for crunch negotiations with the EU 27 meant Britain would: Verhofstadt also delivered a tough response to May’s point about business on his Twitter account. “Threatening to turn the UK into a deregulated tax heaven will not only hurt British people – it is a counterproductive negotiating tactic,” he said, urging May to consider the concerns of 48% who voted remain.
Not be seeking membership of the single market after it leaves the EU. Speaking at Lancaster House, London, the prime minister also committed to give both houses of parliament a vote on the final Brexit deal – prompting the pound to soar – although Downing Street was clear that the alternative to a negotiated exit would be defaulting onto the higher tariffs of World Trade Organisation rules.
Take back control of its borders, which she said had been impossible with free movement from within Europe. Setting out her government’s 12 priorities for crunch negotiations with the EU 27, May made it clear that the UK would:
No longer be under the jurisdiction of the European court of justice, arguing: “We will not have truly left the European Union if we are not in control of our own laws.” Take back control of borders, arguing that record levels of migration had “put pressure on public services”
Not stay in the customs union in its current form, but would try to strike a separate deal that would make trading across borders as “frictionless as possible”. No longer be under the jurisdiction of the European court of justice, because “we will not have truly left the European Union if we are not in control of our own laws”
Her promise of a vote for MPs and peers follows demands from Labour and the Lib Dems, as well as parliament’s committee on Brexit, but Downing street sources made clear that parliament would not be able to stop Britain leaving the EU. That suggests that failure to pass a vote will result in Britain falling back on to the higher tariffs of World Trade Organisation rules. “Explicitly rule out membership of the EU’s single market” because that is incompatible with migration controls
May also insisted that she was determined to reach an early deal on the question of the rights of EU citizens living in the UK and British citizens living abroad – an issue she had raised with European leaders. “Many of them favour such an agreement – one or two others do not,” said May. Not stay in the customs union, but try to strike a separate deal as an “associate member” to make trading as “frictionless as possible”
The prime minister attempted at times to strike a conciliatory tone with the EU by promising to be a “best friend” to the bloc after Brexit. But she used much of the speech to deliver a tough message, arguing that while Britain had been seen as an “awkward” member of the union, Europe had been too inflexible in respecting the needs of a diverse set of nations with very different interests. Not be required to “contribute huge sums to the EU budget” but simply pay towards specific programmes
“There was not enough flexibility on many important matters for a majority of British voters,” she said. But would seek a “new, comprehensive, bold and ambitious free trade agreement” with the EU, and build trading relationships with countries beyond Europe as part of a “global Britain” strategy
Echoing a threat from Philip Hammond, the chancellor, she said: “I must be clear. Britain wants to remain a good friend and neighbour to Europe but I know there are some voices calling for a punitive deal. That would be a case of calamitous self-harm for the countries of Europe and it would not be the act of a friend. Britain could not, indeed we would not, accept such an approach.” Prominent Brexit supporters said the speech represented a clean break from the EU. Boris Johnson, the foreign secretary, who led the Leave campaign, praised a “fantastic speech” on Facebook. He has been keen for the prime minister to make a clean break with the EU, rather than seeking to remain inside the single market.
The prime minister revealed that she wanted to negotiate Britain’s exit and new trading relationship simultaneously within the two-year period after article 50 is triggered in March, and would only accept a phased process of implementation beyond that. The former Ukip leader Nigel Farage said: “I can hardly believe that the PM is now using the phrases and words that I’ve been mocked for using for years. Real progress.”
Any type of unlimited transitional deal could plunge Britain into “permanent political purgatory”, she added, as she called on Britain to put the divides of the hard-fought referendum campaign behind it and to unite around national interest. However, remain supporters in the Conservative party insisted the plan for Britain’s future economic relationship with the EU amounted to “single market lite”. Anna Soubry, who is a key remain supporter, welcomed the “language and tone” of the speech.
Making clear that the UK was not going to seek any form of EU membership via the back door, she said: “We do not seek to adopt a model already enjoyed by other countries. We do not seek to hold on to bits of membership as we leave. The United Kingdom is leaving the European Union. My job is to get the right deal for Britain as we do.” “What I am agitated about is that I believe that immigration benefits British business and I think we are making a serious and grave mistake by thinking we can cut the number of migrant workers without damaging our economy,” she added.
Downing street sources said the prime minister had discussed the speech with both the leaders of the Scottish and Welsh administrations on Tuesday morning, and planned to reach out to both Angela Merkel and François Hollande. This position was echoed by Labour’s Brexit secretary, Keir Starmer, who argued that May was right to attempt to replicate the “attributes of the single market” in a trade deal.
Tim Farron, the leader of the Lib Dems, said the speech represented confirmation of hard Brexit that would do “massive damage” to the economy. Starmer said May had committed to something that would mimic full membership. “The ball is in her court to deliver. We will hold her to that,” he said. However, he and Labour leader Jeremy Corbyn were deeply critical of the threat to slash taxes, which Corbyn said would turn Britain into a “bargain basement tax haven on the shores of Europe”.
“Theresa May also made clear that she will deny the people a vote on the final deal. So instead of a democratic decision by the people in the country, she wants a stitch-up by politicians in Westminster. The people voted for departure, they should be given a vote on the destination. This is a theft of democracy,” he said. The prime minister said she also wanted to secure the rights of the 3 million-plus EU citizens who live in the UK, suggesting that “one or two” countries, thought to include Germany, had refused to negotiate an early agreement over the issue.
The Labour leader, Jeremy Corbyn, added: “She makes all these optimistic statements but every economic indicator in Britain is going in the wrong direction.” May said she would accept a phased process of implementation of the Brexit agreement after 2019 but not an unlimited transitional deal that could plunge Britain into “permanent political purgatory”.
She also called on leave and remain campaigners to put the divisions of the hard-fought referendum behind them. “The victors have the responsibility to act magnanimously. The losers have the responsibility to respect the legitimacy of the outcome,” she said, claiming that business, MPs and the public wanted to “get on with it”.
Calling for unity in the UK, May said: “Because this is not a game or a time for opposition for opposition’s sake. It is a crucial and sensitive negotiation that will define the interests and the success of our country for many years to come. And it is vital that we maintain our discipline.”
The prime minister attempted to strike a conciliatory tone with the EU by promising to be a “best friend” to the bloc after Brexit. But she also claimed the EU had been too unbending in respecting the needs of a diverse set of nations, and too inflexible for British voters. She urged European leaders to learn from Brexit by not “tightening a vice-like grip that ends up crushing into tiny pieces the very things you want to protect”.
After delivering her speech, May spoke to Jean-Claude Juncker and Donald Tusk, the presidents of the European commission and council, as well as to the German chancellor, Angela Merkel, and French president, Francois Hollande. A Downing Street spokesperson said she had told them that she understood Britain could not remain in the single market but wanted a deal in everyone’s interests, and said they had welcomed clarity and that Tusk was looking forward to “negotiating in a spirit of goodwill”.
Tusk also said it marked the start of a “sad process” but said that at least May was now being realistic.
Other European figures who reacted to the speech included the Czech Europe minister, Tomáš Prouza, who tweeted: “UK’s plan seems a bit ambitious. Trade as free as possible, full control on immigration... where is the give for all the take?”
The Italian newspaper, La Repubblica, added that Britain was not just leaving the EU but also the common market and “everything”. “It appears that Theresa May’s intention through negotiations with the EU at the end of March is ‘a hard Brexit’ – a very hard Brexit indeed.”
One of the biggest challenges for May will be the Irish question. A statement from the Irish government welcomed May’s commitment to retain close relations with the EU, saying it was an ambition they shared. It said it was ready to “intensify” engagement with other EU countries, adding: “Ireland will negotiate from a position of strength, as one of the 27 member states firmly in, and committed to, the European Union.”
Sterling was up nearly 3% to around 1.238 US dollars following May’s speech. It also rose 2% against the euro at 1.158.
Some Labour backbenchers were despairing about their party’s response, urging their leadership not to “throw in the towel” and give up on the prospect of membership of a hugely important economic market.
The former shadow chancellor, Chris Leslie, said Labour couldn’t provide May with an “alibi” for her hard Brexit plan.
“We should be trying to salvage membership of the single market but to throw in the towel and not even try to stay a member of the single market is sacrificing Britain’s economic future,” he said, arguing that some EU countries might accept reforms towards managed migration.
“Italy, Greece, Germany might think about amending that fourth pillar – and not to even attempt to ask them is waving the white flag. This is a massively important market – we need a bit of fight.”
He is planning to lay down an amendment calling for a better deal if the government is forced by the Supreme court to publish an act of parliament before triggering article 50.
Tim Farron, the Lib Dem leader, said it was wrong that there would be no referendum on the final deal. “The people voted for departure, they should be given a vote on the destination. This is a theft of democracy.”
Downing Street sources said the prime minister had discussed the speech with both the leaders of the Scottish and Welsh administrations on Tuesday morning. But despite these conversations, May received an immediate rebuke from Nicola Sturgeon who warned the plan could be “economically catastrophic”.
Claiming that May was being driven by the “obsessions of the hard right of the Tory party”, Sturgeon argued that her demands for a special deal for Scotland were not being listened to.