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David Davis plays down Tory row over Brexit transition David Davis plays down Tory row over Brexit transition
(35 minutes later)
David Davis has said there is "no difference" between him, the chancellor and prime minister following a Tory row over the terms of a Brexit transition.David Davis has said there is "no difference" between him, the chancellor and prime minister following a Tory row over the terms of a Brexit transition.
The Brexit Secretary said all three wanted the UK's exit from the EU in March 2019 to "serve the British economy... and the British people".The Brexit Secretary said all three wanted the UK's exit from the EU in March 2019 to "serve the British economy... and the British people".
There was a "diversity of views" in all parties and EU member states, he said.There was a "diversity of views" in all parties and EU member states, he said.
Backbench Tories had criticised Philip Hammond for saying that changes to UK-EU relations could be "very modest".Backbench Tories had criticised Philip Hammond for saying that changes to UK-EU relations could be "very modest".
No 10 distanced itself from Chancellor Philip Hammond's remarks and one Tory MP said he should "stick to the script" the PM had laid out. No 10 distanced itself from Mr Hammond's remarks and one Tory MP said he should "stick to the script" the PM had laid out.
Following a speech outlining some of his ambitions for an "implementation period" immediately after the UK leaves the EU in March 2019, Mr Davis was asked about the row.Following a speech outlining some of his ambitions for an "implementation period" immediately after the UK leaves the EU in March 2019, Mr Davis was asked about the row.
'Coherent and forceful' He said: "I'm in politics, people debate and they have different views and there is a diversity of views on this subject in all parties. That doesn't mean we can't have a coherent and forceful view in the interests of the United Kingdom."
He said the chancellor had "made clear" the UK would be outside the EU customs union and single market but initially there would be "very little initial difference between the standards and regulations that would apply" in the UK and in the EU - allowing little disruption to access to markets.
"I'm in politics, people debate and they have different views and there is a diversity of views on this subject in all parties. That doesn't mean we can't have a coherent and forceful view in the interests of the United Kingdom."
He added: "There is no difference between the chancellor, and myself - and indeed the prime minister - in terms that we both want a Brexit which serves the British economy and which serves the British people. There will be arguments about the tactics but they will change - the options available to us will change throughout the negotiations.He added: "There is no difference between the chancellor, and myself - and indeed the prime minister - in terms that we both want a Brexit which serves the British economy and which serves the British people. There will be arguments about the tactics but they will change - the options available to us will change throughout the negotiations.
"We want a good Brexit for British business and a good Brexit for the British people and we will deliver that on a frictionless access to the single market and political and economic freedom for us in the future.""We want a good Brexit for British business and a good Brexit for the British people and we will deliver that on a frictionless access to the single market and political and economic freedom for us in the future."
In his speech, Mr Davis said that the UK will be able to sign new trade deals in the "transition" period after March 2019. Following rules
The UK is due to leave the European Union on 29 March 2019, after which the UK is expected to negotiate its own trade deals, rather than being part of the deals drawn up on behalf of all EU member states. In his speech, Mr Davis said that the UK would be able to sign new trade deals in the "implementation" period - thought likely to last up to two years.
But a time-limited transitional or "implementation" period - thought likely to last up to two years - is expected to come into force first, before the terms of the UK's ultimate relationship with the EU have been finalised. The UK would still effectively follow the rules of the EU customs union for the period immediately after Brexit and no trade deals could come into force until it ended.
Tories' Brexit agonies resurface
By BBC political editor Laura Kuenssberg
If the Tory party had wanted intentionally to display just how divided they are over Brexit and how generally twitchy they are, they could hardly have done a better job.
Not in off-the-cuff remarks but in scripted comments, one of the most convinced Brexit "softies" in the Cabinet, the chancellor himself, told delegates in Davos that he believed, hopefully, that the changes between the EU and UK economies would be "very modest", as we leave the European bloc.
Meanwhile, the emboldened voice of backbench Brexiteers, Jacob Rees-Mogg, had prepared a speech of his own, accusing ministers of being cowed by the EU and calling for the government to stiffen its sinews in the Brexit talks or risk letting down voters and opting only for a "managed decline".
Read more from Laura Kuenssberg's blog here.
Mr Davis said that the UK would still effectively follow the rules of the EU customs union for the period immediately after Brexit and no trade deals could come into force until it ends.
But he said: "As an independent country - no longer a member of the European Union - the United Kingdom will once again have its own trading policy.But he said: "As an independent country - no longer a member of the European Union - the United Kingdom will once again have its own trading policy.
"For the first time in more than 40 years, we will be able to step out and sign new trade deals with old friends, and new allies, around the globe.""For the first time in more than 40 years, we will be able to step out and sign new trade deals with old friends, and new allies, around the globe."
'Context is important' He said existing international agreements - which include trade deals with other countries and agreements on aviation and nuclear power - should continue to apply during the period.
The speech comes amid a row in his party over the government's approach to Brexit negotiations. The "immediate goal" in negotiations, he added, would be to secure political agreement on an implementation phase by March's European Council summit.
Mr Hammond's comments at the World Economic Forum in Davos on Thursday, provoked a backlash. Analysis by BBC Reality Check Chris Morris
He said: "We are taking two completely interconnected and aligned economies with high levels of trade between them and selectively moving them - hopefully very modestly - apart." This speech comes three days before the other EU member states are due to publish their formal guidelines (their terms and conditions in other words) for negotiations on the nature of a transition period after Brexit.
But a Downing Street spokesman said: "While we want a deep and special economic partnership with the EU after we leave, these could not be described as very modest changes." Those negotiations are due to begin shortly, and Mr Davis is getting his response in first, as well as trying to address some of the political heat he's now feeling from Brexiteers.
That's why he used the term 'implementation' rather than 'transition' period throughout his speech - it suggests that the UK will be implementing the consequences of Brexit.
EU documents though always refer to a transition because other countries are convinced that negotiations on the future EU-UK relationship will not have been completed by the time the UK leaves.
As well as smoothing the path for business, they argue that a transition is necessary to allow negotiations on future relations to continue.
Failing to reach agreement would mean uncertainty for businesses, resulting in delayed investment and a "stifling of hard-won economic growth".
He also stressed the need for an "appropriate process" to allow the UK to resolve any concerns about new EU laws introduced during the implementation phase which were against its interests.
The speech comes amid a row in his party over the government's approach to Brexit negotiations, following Mr Hammond's comments at the World Economic Forum in Davos on Thursday.
Downing Street distanced itself from his remarks although the prime minister's spokesman said on Friday she had full confidence in the chancellor.
'None the wiser'
Asked whether his comments had been destabilising for the prime minister, Mr Hammond told the BBC: "I think the context is important. I was speaking about our trade relationship with the EU, and it is the government's policy that we want to maintain the maximum possible access to markets and the minimum friction at our borders because that's good for the British economy, it's good for British jobs and it's good for British prosperity."Asked whether his comments had been destabilising for the prime minister, Mr Hammond told the BBC: "I think the context is important. I was speaking about our trade relationship with the EU, and it is the government's policy that we want to maintain the maximum possible access to markets and the minimum friction at our borders because that's good for the British economy, it's good for British jobs and it's good for British prosperity."
'Stick to script' But Eurosceptic Tory backbencher Bernard Jenkin told the BBC it would be easier for the PM if Mr Hammond and other cabinet ministers "stuck to her script" while Jacob Rees-Mogg said Mr Hammond "must have been affected by high mountain air" in the Swiss resort.
Eurosceptic Conservative backbenchers have lined up to criticise the chancellor. In response to Mr Davis's speech, Labour MP Hilary Benn, chairman of the Commons Brexit committee, said: "Even if the UK is able to first negotiate and then sign trade deals during the transition period, we already know that any such deals cannot be implemented until that period comes to an end.
Bernard Jenkin told the BBC it would be easier for the PM if Mr Hammond and other cabinet ministers "stuck to her script" while Jacob Rees-Mogg said Mr Hammond "must have been affected by high mountain air" in the Swiss resort. "So today's speech does not tell us anything new.
And former cabinet minister Owen Paterson told the BBC that Mr Hammond "appeared to be transmitting the standard Treasury view that this is all a nightmare, all a big mistake and it should be minimised". "What we really needed to hear is what the government's proposals are for the most important trade negotiation of all - with the European Union... On that, we are none the wiser."
But former culture minister Ed Vaizey said he could not understand why the chancellor was being criticised.
"He was giving a speech to business leaders where he rightly wanted to assure them there was going to be a smooth Brexit," he told the BBC's Daily Politics.
"What is happening is that people like Philip Hammond... are putting forward practical ideas about how we implement Brexit and Brexiteers tour the TV studios saying it is outrageous but they won't tell us what they actually want."