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Dominic Raab becomes new Brexit secretary after David Davis resigns – politics live | Dominic Raab becomes new Brexit secretary after David Davis resigns – politics live |
(35 minutes later) | |
The leaders of Ireland and Austria have welcomed Theresa May’s new Brexit plan as a step forward but said many questions remained to be answered in the negotiations ahead. | |
The Austrian chancellor, Sebastian Kurz, is currently on the old Dublin-Belfast border crossing to hear about cross-border co-operation. Speaking on arrival in Dublin he said that it was positive that Britain had now presented its position after May secured cabinet agreement on Friday but that there were still many open questions. | |
The taoiseach, Leo Varadkar, said negotiators could be more optimistic than they were a week ago but reiterated the EU’s position that the UK could not cherry pick parts of the single market with a “goods only” approach. He said: | |
We continue to have some concerns about the workability of the UK’s customs proposals. The position from the EU, and a position I support, is that you are either in the single market or you’re not. | |
These are from ITV’s Robert Peston. | |
See below on what Davis was offered to stop him quitting, from source close to @DavidDavisMP. Response from Downing St official: “I know nothing about that” pic.twitter.com/kvXoOyGFlr | |
Steve Baker, who resigned as David Davis’s depuy at the Brexit department, is on the Daily Politics now. He says he quit because he thinks Theresa May’s Brexit plan will not give parliament enough freedom to reject EU laws. | |
Asked why he did not know in advance that this is what May was proposing, Baker said that Number 10 had changed its plans at the last minute. He said the Brexit department had been assuming that different plans would go into the white paper. He said: | |
We’ve all been blindsided by this policy. | |
But he also says he is not backing a challenge to Theresa May. He says his message to Tory MPs is: “Don’t put in letters [to the chair of the 1922 committee.] | |
The departure of David Davis would not have a big impact on Brexit negotiations, EU sources said. But the EU will be worried that his resignation means Theresa May’s hard-won Chequers compromise could fall apart, because it suggests the UK’s internal negotiations are not finished. | |
Responding to the news, one senior EU diplomat said it meant “no big change” because Davis “wasn’t really present recently”, as Olly Robbins, the prime minister’s Europe advisor, had been doing the negotiations. The domestic implications for Theresa May are still unclear, the source said, adding “I hope she has a good plan”. | |
The former Brexit secretary had only attended four hours of talks since the start of the year, and at one point went three months without meeting the EU’s chief negotiator Michel Barnier in Brussels. | |
But another source downplayed the resignation, saying diplomats were awaiting the full-version of the plan, in a Brexit white paper expected on Thursday. “It is important that the meeting in Chequers has taken place and the cabinet has defined its position.” | |
The Conservative Brexiter Andrew Bridgen told BBC Radio 5 Live that, if Theresa May did not change her Brexit policy, he would back a no confidence motion in her. He said: | |
I hope we are going to have a U turn by the prime minister today, otherwise she’s going to be in serious trouble ... | |
I have no confidence in that policy. If that is maintained by the prime minister as her policy, then I would have no confidence in the prime minister. I think there’s a large number of my colleagues will have that same view. | |
Asked if that meant 48 Tories (15% of the parliamentary party) would back a no confidence vote (the number who need to write to the chair of the Conservative 1922 committee asking for a no confidence vote for one to go ahead), Bridgen replied: “Very possibly”. | |
On currency markets, the pound has shrugged off David Davis’ resignation following a brief dip. It has hit a three-week high, trading nearly 0.4% higher against the dollar at $1.3336, and has been steady against the euro. | |
Chris Scicluna at Daiwa Capital Markets said: “Sterling remains broadly stable this morning, and firmer than it was ahead of the Cabinet agreement last Friday.” | |
Joshua Mahony, market analyst at online trading firm IG, said: | |
Brexit concerns are back at the top of the agenda, following last week’s meeting at Chequers, culminating in yesterday’s resignation from David Davis. While markets should be worried by the added uncertainty of losing the Brexit secretary just eight months before the UK leaves the EU, there is a feeling that the UK is moving towards a business-friendly softer Brexit. The BCC has voiced its concerns over the impact of a potential rate rise, with companies clearly in limbo ahead of an uncertain Brexit. However, while companies and individuals may not too keen on a Bank of England rate rise, markets are clearly warming to the idea, with sterling-dollar rising to a three-week high, amid a wider dollar selloff. | |
Markets are currently pricing in an 80% chance of a BoE rate rise in less than a months’ time, yet with the UK GDP figure due out tomorrow morning, we could see some sterling volatility to come this week. | |
Here are some snap thoughts on Dominic Raab’s appointment as Brexit secretary. | |
1 - Dominic Raab is a prominent Brexiter, and so Theresa May is continuing with the principle that has generally governed her emergency cabinet reshuffles of “like-for-like” replacement of remainers and leavers. (In that respect, the UK increasingly resembles one of those foreign states where posts in government are divided up amongst religious sects.) Raab played a leading role in the Vote Leave campaign. But he is generally seen as one of the more pragmatic and cerebral Brexiters, and not a hardline ideologue. | |
2 - The Raab appointment could be seen as a snub to Michael Gove. Gove would have been the obvious Brexiter to replace David Davis, and Gove might have been seen as someone who could win around some of the hardline, European Research Group Tories. But May sacked Gove from the cabinet when she became PM and, although she brought him back, she probably does not fully trust him. And she is wise not to; he has designs on her job. | |
3 - This move shows May is serious about about bringing new talent into the cabinet. Raab was disappointed not to get a cabinet job at the last reshuffle (some Conservative-supporting journalists had been briefed that he was a dead-cert for a cabinet job). At the end of last week Number 10 included Raab among a list of names of ministers who they said might replace anyone who chose to resign. The briefing was intended to tell cabinet Brexiters that they were expendable, and could be easily replaced. But it was also a means of encouraging junior ministers to stay loyal. | |
4 - This could be a sign that Theresa May is open to extending the Brexit transition. Number 10 has repeatedly ruled it out. But in Brussels it is widely assumed that the transition will have to be extended, and in an interview with Nick Robinson for his Political Thinking podcast at the end of last week, Raab accepted that implementing Brexit might have to take “more time”. | |
Leavers should be prepared for a bridge to Brexit that is “rocky” & “takes more time” says @DominicRaab. What matters is that the “end state” is good. Political Thinking podcast out now. Subscribe on iTunes: https://t.co/clySpQhhRo / 🎧 Download here... https://t.co/FOX2k3M4Na pic.twitter.com/aU2Gjg3B8E | |
(The interview is well worth listening to. For anyone who assumers that Brexiters are anti-immigrant, Raab points out that he is the son of a Czech refugee and he is married to a Brazilian. Raab worked as Davis’s chief of staff at one point. But he also worked for Dominic Grieve, the one of the Conservative party’s leading remainers.) | |
5 - Yet again, housing policy has taken a back seat. Housing is supposed to be one of the government’s priorities. But Raab was in the job for just six months, and his replacement will be the eighth housing minister since 2010. This is from the Times’ Tom Knowles. | |
So... whoever his replacement for housing is will be the 17th housing minister since 1997 and the 8th since 2010 https://t.co/IUsG8C0FF3 | |
And this is from the Home Builders Federation’s David O’Leary. | |
And another! #ukhousing pic.twitter.com/zHSy0s8S40 | |
Dominic Raab, the housing minister, is the new Brexit secretary, Number 10 has announced. | Dominic Raab, the housing minister, is the new Brexit secretary, Number 10 has announced. |
Jacob Rees-Mogg, the Conservative backbencher and chair of the pro-Brexit European Research Group, has just told Sky news that the fact that No 10 is briefing Labour MPs on Theresa May’s Brexit policy (see 9.29am) suggests that May thinks she will have to rely on “socialist votes” to get her plan through parliament. | Jacob Rees-Mogg, the Conservative backbencher and chair of the pro-Brexit European Research Group, has just told Sky news that the fact that No 10 is briefing Labour MPs on Theresa May’s Brexit policy (see 9.29am) suggests that May thinks she will have to rely on “socialist votes” to get her plan through parliament. |
This is from the Sun’s Brussels correspondent Nick Gutteridge. | This is from the Sun’s Brussels correspondent Nick Gutteridge. |
EU diplomat jokes DD delayed his resignation because he didn't want to take a taxi back from Chequers. Then brutally adds: 'We're already used to negotiating with Olly Robbins, so this resignation doesn't really affect the negotiations.' Ouch 🔥 | EU diplomat jokes DD delayed his resignation because he didn't want to take a taxi back from Chequers. Then brutally adds: 'We're already used to negotiating with Olly Robbins, so this resignation doesn't really affect the negotiations.' Ouch 🔥 |