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Brexit: May has full confidence in Hammond, says spokesman Brexit: May has full confidence in Hammond, says spokesman
(about 2 hours later)
No 10 attempts to ease Tory tensions as chancellor calls for ‘middle way’ after backlashNo 10 attempts to ease Tory tensions as chancellor calls for ‘middle way’ after backlash
Peter Walker and Peter Walker and
Heather StewartHeather Stewart
Fri 26 Jan 2018 13.59 GMTFri 26 Jan 2018 13.59 GMT
Last modified on Fri 26 Jan 2018 14.03 GMT Last modified on Fri 26 Jan 2018 15.50 GMT
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Downing Street has expressed full confidence in Philip Hammond after a row over Brexit, as the chancellor warned that zealots on both sides of the argument were risking a sensible “middle way” for departure from the EU.Downing Street has expressed full confidence in Philip Hammond after a row over Brexit, as the chancellor warned that zealots on both sides of the argument were risking a sensible “middle way” for departure from the EU.
The attempt at reconciliation came after No 10 distanced Theresa May from a speech in which Hammond said the UK should seek to diverge only “very modestly” from the EU after Brexit.The attempt at reconciliation came after No 10 distanced Theresa May from a speech in which Hammond said the UK should seek to diverge only “very modestly” from the EU after Brexit.
His remarks in a speech on Thursday to business leaders at the World Economic Forum in Davos were seized upon by restive Eurosceptics concerned about the government’s direction. The Brexit secretary, David Davis, also stressed government unity over the issue, saying that while there would be “arguments about the tactics”, Hammond and May fundamentally agreed on the way forward.
Hammond’s remarks, in a speech on Thursday to business leaders at the World Economic Forum in Davos, had been seized upon by restive Eurosceptics concerned about the government’s direction.
It also prompted a reprimand for the chancellor, with a No 10 source saying the plan for Brexit “could not be described as very modest changes”.It also prompted a reprimand for the chancellor, with a No 10 source saying the plan for Brexit “could not be described as very modest changes”.
Asked if May had full confidence in her chancellor, a Downing Street spokesman said she did. The UK would leave the customs union and single market, and while a Brexit deal would seek “a customs relationship which is as frictionless as possible”, this would also see the freedom to make new trade deals elsewhere, he added. Asked if May had full confidence in her chancellor, a Downing Street spokesman said she did. The UK would leave the customs union and single market, and while a Brexit deal would seek “a customs relationship which is as frictionless as possible”, this would also allow the freedom to make new trade deals elsewhere, he added.
Speaking in Davos on Friday, Hammond said he was also seeking a deal which would maximise access to EU markets. He added that there were people on both sides of the debate who did not want a pragmatic approach that protected jobs. Answering questions after a speech on Brexit in Middlesbrough, Davis said Hammond had been correct in his assessment, but had been talking about what would happen during a transition period.
“There are people that wanted to stay in the EU customs union, we reject that argument,” he told Sky News. “There are people that want us to sever our trade links with Europe and give up this market we reject their arguments too. “At the beginning, when we’re out, there will be very, very little initial difference between the standards and regulations that apply in our country and on the continent of Europe,” he said.
“And therefore access to the markets will continue with very, very little disruption. That was the point he was driving at.”
Asked if it was possible for a divided cabinet to negotiate Brexit, Davis dismissed the idea of splits. “There is no difference between the chancellor and myself, and indeed the prime minister, in terms that we both want a Brexit that serves the British economy and serves the British people,” he said.
“There will be arguments about the tactics, but they will change. The options available to us will change throughout the course of the negotiations, as we see what our European interlocutors want.
“But throughout it all it will be absolutely clear that we want a good Brexit for British business and a good Brexit for British people. And we will deliver that on a frictionless access to the single market and a political and freedom for us in the future.”
Speaking in Davos on Friday, Hammond warned there were people on both sides of the debate who did not want a pragmatic approach that protected jobs.
“There are people that wanted to stay in the EU customs union – we reject that argument,” he told Sky News. “There are people that want us to sever our trade links with Europe and give up this market – we reject their arguments too.
“We have got to stick to the middle way, which is negotiating the maximum access we can get to European markets compatible with the red lines we have already set out about repatriating control over our laws, our borders and our money.”“We have got to stick to the middle way, which is negotiating the maximum access we can get to European markets compatible with the red lines we have already set out about repatriating control over our laws, our borders and our money.”
Hammond said he had not spoken to May since his speech, but said Downing Street had “quite rightly” argued that leaving the EU, as well as the customs union and single market, were significant changes. The government nonetheless faced continued unrest among Conservative MPs over the apparent divisions.
The government nonetheless faced continued unrest from some Conservative MPs over the apparent divisions. The Eurosceptic backbencher Bernard Jenkin told BBC2’s Daily Politics: “If there are really big ideological divisions between the chancellor and the prime minister, that is usually not very good news for the stability of a government, and the PM will have to address that one way or the other and I will leave that thought there with you.”
The Eurosceptic backbencher Bernard Jenkin told BBC2’s Daily Politics: “I think that if there are really big ideological divisions between the chancellor and the prime minister, that is usually not very good news for the stability of a government, and the PM will have to address that one way or the other – and I will leave that thought there with you.”
Jenkin said the government’s Brexit policy was clear and Hammond should “not try to play blow football with the policy and to try to make it into something that it isn’t”.Jenkin said the government’s Brexit policy was clear and Hammond should “not try to play blow football with the policy and to try to make it into something that it isn’t”.
On Thursday the prominent Eurosceptic backbencher Jacob Rees-Mogg, the new chair of the powerful European Research Group (ERG) of pro-Brexit Tory MPs, used a speech in Hampshire to accuse the government of being “cowed” by Brussels in the Brexit talks. On Thursday, the prominent Eurosceptic backbencher Jacob Rees-Mogg, the new chair of the powerful European Research Group (ERG) of pro-Brexit Tory MPs, used a speech in Hampshire to accuse the government of being “cowed” by Brussels in the Brexit talks.
“For too long our negotiators seemed to have been cowed by the EU. Their approach seems to be that we must accept what the EU will allow us to do and build from there. This is no way to negotiate and it is no way for this country to behave,” he said.
ERG-supporting Tory MPs have threatened to vote as a bloc against the government in the customs bill to prevent the government retaining the power to keep the UK in a customs union with the EU.
At the same time, May is under pressure from other MPs worried about the general direction of her government, which has prompted speculation about an imminent challenge against her.At the same time, May is under pressure from other MPs worried about the general direction of her government, which has prompted speculation about an imminent challenge against her.
Mark Pritchard, a formerly pro-remain Conservative MP, tweeted that there was “no major revolt on the Tory backbenches”.Mark Pritchard, a formerly pro-remain Conservative MP, tweeted that there was “no major revolt on the Tory backbenches”.
No major revolt on the Tory backbenches. However, there is a growing frustration that Number 10 is not plugged into the views & opinions of many backbench MPs or even interested. The PM is also being criticised for taking her very small group of allies for granted. A big mistake!No major revolt on the Tory backbenches. However, there is a growing frustration that Number 10 is not plugged into the views & opinions of many backbench MPs or even interested. The PM is also being criticised for taking her very small group of allies for granted. A big mistake!
The rifts, which follow Boris Johnson’s open disagreement over NHS funding this week, came at a fragile moment for the prime minister’s leadership after a string of Conservative MPs told the Guardian some of their colleagues were considering another attempt at ousting her if the local elections in May go badly.
Philip HammondPhilip Hammond
Theresa MayTheresa May
BrexitBrexit
DavosDavos
Davos 2018Davos 2018
European UnionEuropean Union
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