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Brexit: cabinet seeks to present united front after Hammond spat Brexit: cabinet seeks to present united front after Hammond spat
(35 minutes later)
Downing Street attempts to ease Tory tensions after chancellor calls for ‘middle way’ after backlashDowning Street attempts to ease Tory tensions after chancellor calls for ‘middle way’ after backlash
Heather Stewart, Heather Stewart,
Peter Walker and Peter Walker and
Jennifer RankinJennifer Rankin
Fri 26 Jan 2018 13.59 GMTFri 26 Jan 2018 13.59 GMT
Last modified on Fri 26 Jan 2018 21.00 GMT Last modified on Fri 26 Jan 2018 21.56 GMT
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Downing Street has expressed full confidence in Philip Hammond after a row over Brexit, as the chancellor said zealots on both sides of the argument were risking a sensible “middle way” for departure from the EU. Theresa May’s cabinet has attempted to paper over its divisions on Brexit as Philip Hammond urged both sides of the Conservative party to seek a “middle way”. A spokesman for the prime minister insisted that she had full confidence in her chancellor, despite distancing herself from remarks he made in Davos on Thursday, where he 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. The chancellor, along with the Brexit secretary, David Davis, and business secretary, Greg Clark, presented a united front on Friday by signing a joint letter to business leaders, seeking to reassure them that rules and regulations will remain the same during the post-Brexit transition period.
David Davis, the Brexit secretary, also stressed government unity over the issue, saying that while there would be “arguments about the tactics”, Hammond and the prime minister fundamentally agreed on the way forward. Hammond told Sky News: “There are people that wanted to stay in the EU customs union – we reject that argument. There are people that want us to sever our trade links with Europe and give up this market – we reject their arguments too.
Hammond’s remarks, in a speech on Thursday to business leaders at the World Economic Forum in Davos, had been seized upon by restive Tory 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”. “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.”
Asked whether 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 that was “as frictionless as possible”, this would also allow Britain the freedom to make new trade deals elsewhere, he added. But privately, senior government figures remained at loggerheads, with Brexiters claiming the Treasury is plotting to extend the transition to three years and beyond, in the hope of leaving Britain indefinitely in a “Hotel California” status, in which “you check out, but you never leave”.
Another said: “There are different views, and some of those views are going to have to crystallise over the coming months.”
After Boris Johnson was given a dressing-down over well-briefed calls for more cash for the NHS on Monday, the spat with Hammond underlined the continued divisions in May’s freshly reshuffled cabinet.
In Brussels, meanwhile, European officials increasingly fear that May is drifting on Brexit, amid growing concern that she is unable to make hard political choices.
“There is a growing view that for domestic reasons [the British] want to play everything long and avoid making difficult choices that will antagonise the Eurosceptics or give Jeremy Corbyn an advantage,” one senior European diplomat told the Guardian. The British were waiting “for the for the EU to fill in the dots … and that is a high-risk strategy”.
Asked if that increased the risks of no-deal Brexit, the diplomat said yes, “in particular given the ticking clock”.
Davis stressed government unity on Friday, saying that while there would be “arguments about the tactics”, Hammond and the prime minister fundamentally agreed on the way forward.
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.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.
“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. And therefore access to the markets will continue with very, very little disruption. That was the point he was driving at.”“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. And therefore access to the markets will continue with very, very little disruption. That was the point he was driving at.”
Asked whether 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,” Davis said. Describing the transition period as “a bridge to the future partnership,” Davis said the UK will begin to negotiate trade agreements with the rest of the world as soon as the transition period begins.
“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.”
Davis said UK would begin to negotiate trade agreements with the rest of the world as soon as the transition period begins.
It is understood that the EU will not oppose this, as long as the UK does not finalise any deals. Michel Barnier, the EU’s chief negotiator, has pointedly said London will need time to sort out new arrangements when about 750 international agreements negotiated by the EU no longer apply to the UK.
Officials have also stressed they will not be able to force countries such as South Korea or Canada to guarantee the UK will remain part of existing EU trade deals. The EU has signed at least 34 trade deals with 60 countries.
Speaking in Davos on Friday, Hammond said there were people on both sides of the debate who did not want a pragmatic approach that protected jobs.
Davos is a Swiss ski resort now more famous for hosting the annual four-day conference for the World Economic Forum. For participants it is a festival of networking. Getting an invitation is a sign you have made it – and the elaborate system of badges reveals your place in the Davos hierarchy.Davos is a Swiss ski resort now more famous for hosting the annual four-day conference for the World Economic Forum. For participants it is a festival of networking. Getting an invitation is a sign you have made it – and the elaborate system of badges reveals your place in the Davos hierarchy.
For critics, “Davos man” is shorthand for the globe-trotting elite, disconnected from their home countries after spending too much time in the club-class lounge. Others just wonder if it is all a big waste of time.Who is there?For critics, “Davos man” is shorthand for the globe-trotting elite, disconnected from their home countries after spending too much time in the club-class lounge. Others just wonder if it is all a big waste of time.Who is there?
More than 2,500 people – business leaders, politicians such as Donald Trump, diplomats and the odd celebrity, such as Cate Blanchett – will fly in for the 48th annual Davos meeting. As usual most delegates are men: just 17% of are women. Although the forum boasts delegates from more than 100 countries, most hail from western Europe, followed by the US. The smallest number of delegates come from Latin America and Africa.More than 2,500 people – business leaders, politicians such as Donald Trump, diplomats and the odd celebrity, such as Cate Blanchett – will fly in for the 48th annual Davos meeting. As usual most delegates are men: just 17% of are women. Although the forum boasts delegates from more than 100 countries, most hail from western Europe, followed by the US. The smallest number of delegates come from Latin America and Africa.
“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. In Davos on Friday, 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 from among some Conservative MPs over the apparent divisions.
“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.” 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.”
The government nonetheless faced continued unrest among 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.”
Jenkin said the government’s Brexit policy was clear, adding: “[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, adding: “[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, fellow Eurosceptic backbencher Jacob Rees-Mogg, the new chair of the 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.
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!
Philip HammondPhilip Hammond
Theresa MayTheresa May
BrexitBrexit
DavosDavos
Davos 2018Davos 2018
European UnionEuropean Union
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