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Rees-Mogg accuses Treasury of 'fiddling' figures in Brexit report Rees-Mogg accuses Treasury of 'fiddling' figures in Brexit report
(34 minutes later)
Analysis showing UK would be worse off outside customs union is politically influenced, he saysAnalysis showing UK would be worse off outside customs union is politically influenced, he says
Press AssociationPress Association
Sat 3 Feb 2018 10.51 GMTSat 3 Feb 2018 10.51 GMT
Last modified on Sat 3 Feb 2018 11.30 GMT
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Jacob Rees-Mogg has stepped up his attack on the Treasury, accusing officials of “fiddling the figures” in an effort to keep Britain in the EU customs union.Jacob Rees-Mogg has stepped up his attack on the Treasury, accusing officials of “fiddling the figures” in an effort to keep Britain in the EU customs union.
As senior ministers prepare to discuss Britain’s future relationship with the EU, the chairman of the pro-Brexit European Research Group of Tory MPs said any deal that kept the UK in a common customs area with the EU would be unacceptable.As senior ministers prepare to discuss Britain’s future relationship with the EU, the chairman of the pro-Brexit European Research Group of Tory MPs said any deal that kept the UK in a common customs area with the EU would be unacceptable.
He said Treasury economic modelling suggesting Britain would be worse off in any arrangement outside the customs union was “clearly politically influenced”.He said Treasury economic modelling suggesting Britain would be worse off in any arrangement outside the customs union was “clearly politically influenced”.
His intervention came after Theresa May, on the final day of her official visit to China, appeared to leave the door open to some sort of customs agreement with the EU – even though ministers have said Britain will leave the existing customs union. His intervention came after Theresa May, on the final day of her official visit to China, appeared to leave the door open to some sort of customs agreement with the EU even though ministers have said Britain will leave the existing union.
Rees-Mogg made clear any such arrangement would be unacceptable to Conservative Brexiters because it would prevent the UK from striking free trade deals with other countries.Rees-Mogg made clear any such arrangement would be unacceptable to Conservative Brexiters because it would prevent the UK from striking free trade deals with other countries.
“We need to be free to do deals with the rest of the world. We must be out of the protectionist common external tariff which mainly protects inefficient EU industries at the cost to British consumers,” he told BBC Radio 4’s Today programme.“We need to be free to do deals with the rest of the world. We must be out of the protectionist common external tariff which mainly protects inefficient EU industries at the cost to British consumers,” he told BBC Radio 4’s Today programme.
He also repeated his controversial claim made in the House of Commons that he had heard the head of a pro-EU thinktank saying Treasury officials had deliberately created an economic model to show that all options other than remaining in the customs union were “bad”. He also repeated his controversial claim made in the House of Commons that he had heard the head of a pro-EU thinktank saying Treasury officials had deliberately created an economic model to show that all options other than remaining in the customs union were bad.
On Friday, the Brexit minister Steve Baker apologised to MPs for saying Rees-Mogg’s account of the remarks by Charles Grant, the head of the Centre for European Reform, was “essentially correct” after an audio recording of the meeting where he had been speaking emerged. The Brexit minister Steve Baker apologised to MPs on Friday for saying Rees-Mogg’s account of the remarks by Charles Grant, the head of the Centre for European Reform, was “essentially correct” after an audio recording of the meeting where he had been speaking emerged.
However, Rees-Mogg made clear that he stood by his original claim. Rees-Mogg, however, made it clear that he stood by his original claim. “Mr Grant said the Treasury is determined to keep us in the customs union. He also said on another occasion that the Treasury is ‘newly emboldened’,” he said.
“Mr Grant said the Treasury is determined to keep us in the customs union. He also said on another occasion that the Treasury is ‘newly emboldened’,” he said.
“He is getting private briefings from the Treasury against government policy. This is very serious. It is not for officials to invent policy. This is saying that they are determining policy, that they have an aim to lead policy against what the politicians may decide.”“He is getting private briefings from the Treasury against government policy. This is very serious. It is not for officials to invent policy. This is saying that they are determining policy, that they have an aim to lead policy against what the politicians may decide.”
He said that since the decision to call the EU referendum in 2016 – when the then chancellor, George Osborne, campaigned for remain – it was clear that the Treasury’s economic forecasting had become politicised.He said that since the decision to call the EU referendum in 2016 – when the then chancellor, George Osborne, campaigned for remain – it was clear that the Treasury’s economic forecasting had become politicised.
“With all forecasts, the assumptions you make at the beginning determine the outcomes that you get,” he said.“With all forecasts, the assumptions you make at the beginning determine the outcomes that you get,” he said.
“If you look at the forecasts the Treasury made before the referendum, they were a humiliation. They were clearly politically influenced.“If you look at the forecasts the Treasury made before the referendum, they were a humiliation. They were clearly politically influenced.
“The Office of Budget Responsibility was set up by George Osborne because the Treasury forecasts had been politicised. It was thought that they were unreliable on political grounds.“The Office of Budget Responsibility was set up by George Osborne because the Treasury forecasts had been politicised. It was thought that they were unreliable on political grounds.
“With the referendum and with the EU, the Treasury has gone back to making forecasts. It was politically advantageous for them in the past. It is the same for them now.“With the referendum and with the EU, the Treasury has gone back to making forecasts. It was politically advantageous for them in the past. It is the same for them now.
“So yes, I do think they are fiddling the figures.”“So yes, I do think they are fiddling the figures.”
Grant rejected Rees-Mogg’s account of his comments, although he acknowledged that many in the Treasury did regard staying in the customs union as the “less damaging option” for the economy.Grant rejected Rees-Mogg’s account of his comments, although he acknowledged that many in the Treasury did regard staying in the customs union as the “less damaging option” for the economy.
“Mr Baker, a very honourable man, has apologised to me and to the House of Commons for saying things that weren’t quite right. I am surprised that Mr Rees-Mogg hasn’t apologised,” he told Today.“Mr Baker, a very honourable man, has apologised to me and to the House of Commons for saying things that weren’t quite right. I am surprised that Mr Rees-Mogg hasn’t apologised,” he told Today.
“The Treasury cares about economics so it is naturally pushing for the sorts of Brexit that minimise the economic damage.”“The Treasury cares about economics so it is naturally pushing for the sorts of Brexit that minimise the economic damage.”
Jacob Rees-MoggJacob Rees-Mogg
BrexitBrexit
Civil serviceCivil service
Foreign policyForeign policy
European UnionEuropean Union
EuropeEurope
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