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Hammond hints PM should back softer Brexit by saying MPs should 'map out consensus' – Politics live Brexit: MPs debate ruling out no-deal exit from EU – Politics live
(about 2 hours later)
Theresa May was due to open the Brexit debate today, but Michael Gove, the environment secretary, is going to do it instead. Given the state of her voice, that’s understandable. Starmer ends his speech by saying that he hopes the vote tonight will “bury no deal so deep that it never resurfaces”.
The Government have confirmed that @michaelgove not @theresa_may will open the no-Deal debate. @LiamFox will close. For @UKLabour it will be @Keir_Starmer and @mtpennycook Here is the BBC’s Laura Kuenssberg on Gove’s suggestion that the government could back “indicative votes” on Brexit alternatives. (See 3.57pm.)
At the end of his spring statement speech Philip Hammond, the chancellor, urged MPs to build a “consensus” around Brexit. He said: Conversations going on in govt about how to find a way forward - no final decision yet on doing it this way, tomorrow might feel a bit like indicative votes any way depending what amendments go down https://t.co/EKwFx8ukCa
Last night’s events mean we are not where I hoped we would be today. Our economy is fundamentally robust. But the uncertainty that I hoped we would lift last night, still hangs over us. We cannot allow that to continue. Labour’s Ben Bradshaw asks Starmer to reaffirm Labour’s commitment to a public vote.
It is damaging our economy and it is damaging our standing and reputation in the world. Starmer says he can do so. The Labour manifesto said it would accept the referendum result. But it also said it would not accept May’s red lines.
Tonight, we have a choice: we can remove the threat of an imminent no-deal exit hanging over our economy. Labour lost that election, he says.
Tomorrow, we will have the opportunity to start to map out a way forward towards building a consensus across this house for a deal we can, collectively support, to exit the EU in an orderly way. He says the goverment is in a “hopeless” position.
Hammond referred to “a deal” that MPs could support, not “the deal” put forward by Theresa May. It was a very strong hint that he would like the government to pivot towards a softer Brexit, which would potentially involve a Norway-style Brexit passing with Labour support. The PM’s red lines, and no deal - the two things Labour rejected in its manifesto - are still on the table, he says. He says that is why a people’s vote is still on the table.
Hammond has also managed a Brexit joke. Announcing money for a new super-computer at Edinburgh University, which will be five times faster than the existing one, he says that, with the right algorithms, it might even be able to come up with a solution to the Northern Irish backstop. Anna Soubry asks if Labour will support a peoples’ vote now.
Here is some Twitter comment on Philip Hammond’s no-deal warnings. Stamer says Corbyn said two weeks ago Labour would table an amendment, or support one. That remains the position, he says.
From the BBC’s Laura Kuenssberg Sir Keir Starmer, the shadow Brexit secretary, is responding to Gove in the Brexit debate.
Hammond says everyone in house needs to put aside differences and find a compromise - leaving without deal not what people voted for ,he says - interesting he hasn’t yet explicitly argued for May’s deal The Tory Brexiter Mark Francois intervenes to say Gove implied the government will bring May’s deal back to the Commons for a third meaningful vote. He says he is willing to bet Starmer £50 that that vote will take place on Tuesday 26 March.
From CityAM’s Owen Bennett Starmer says he does not gamble.
If this is Philip Hammond’s final set piece as chancellor, he’s going down all guns blazing. Says a no deal would lead to higher prices in the shops and a smaller economy. No quick fix to cope with no deal impact. This is going to rile up many Tories. #springstatement Turning to Gove’s speech, Starmer says Gove was blaming the opposition for the failure of May’s deal.
Interesting that @CCHQPress hasn’t tweeted out any of Hammond’s no deal warnings in his speech. https://t.co/WQdVNqlgru But the government has failed to reach out to other parties to find a plan acceptable to the Commons, he says.
From the Sun’s Tom Newton Dunn The EU’s deputy Brexit negotiator Sabine Weyand has said MPs’ decision to resurrect plans already rejected by Brussels countless times shows that parliament is “divorced from reality”.
Philip Hammond calls for Commons to “put aside our differences and seek a compromise in the national interest”; ie, a softer Brexit deal. This is pointedly not MV3, which is why PM has a face like thunder behind him. Speaking at a closed-door meeting of EU ambassadors this morning, Weyand made the tart observation about the Malthouse compromise - a variant of plans rejected by Brussels numerous times.
From the Guardian’s Richard Partington Quoting private remarks by the Dutch prime minister, Mark Rutte, Weyand also said the decision to vote for no-deal was “like the Titanic voting for the iceberg to get out of the way”.
Hammond takes a dig at Brexiters: “The idea there is some readily available fix to avoid the consequences of a no-deal Brexit is just wrong” -- any fiscal or monetary response would need to be temporary to avoid inflation Officials have voiced astonishment that Theresa May is allowing a free vote on no-deal, rather than seeking to defend the Brexit agreement painstakingly negotiated with the EU over 20 months. One senior source told the Guardian the decision to hold a free vote was “incredible”.
From Sky’s Beth Rigby Weyand, an architect of the Strasbourg assurances hammered out on Monday, said that the second historic defeat for May’s deal showed that “a short technical extension” of talks could now be ruled out.
Jeers as Chancellor claims Tories the party of business against backdrop of Brexit meltdown. 16 days to go until B-day & still no clear path thru on May's Deal, No Deal and No Brexit. This speech to implore Tories to fall into line. Hammond the last one they'd listen to But EU member states do not share this view. France and Germany are among several countries who want to see flexibility, although they share concerns about a long-drawn-out Brexit distracting the EU when it has numerous economic and foreign policy questions jostling for attention.
In his spring statement Philip Hammond, the chancellor, says that if there is a Brexit deal, he will launch a three-year spending review before the summer. The ambassadors concluded that the highly political question of extending Brexit talks could only be decided by EU leaders, who will assess the question at a summit next Thursday (21 March). Insiders expect the decision will be taken on Thursday by leaders, rather than pre-cooked in advance by their officials.
“I intend to launch a full three-year Spending Review before the summer recess, to be concluded alongside an Autumn Budget.” - @PhilipHammondUK #SpringStatement pic.twitter.com/4TIHxUJN0Y If MPs vote for an extension on Thursday, a critical period of diplomacy will begin. Donald Tusk, the president of the European council, will meet the Dutch prime minister Mark Rutte on Friday, Angela Merkel and Emmanuel Macron on Monday, Leo Varadkar on Tuesday.
But he says a no-deal Brexit would deliver “a significant short- to medium-term reduction in the productive capacity of the the British economy”. While various extension times have been mooted - from five weeks to 21 months - there has never been a default position. Insiders stress the decision will depend on what the UK asks for.
He says it would lead to lower growth, higher unemployment and higher prices. But there is growing impatience with the UK - one ambassador asked why the EU had to assess complicated scenarios, when the British government could revoke article 50.
During PMQs Theresa May accused Jeremy Corbyn of not referring to Labour’s second referendum commitment in the Commons yesterday. Many EU diplomats and officials think a short extension - two to three months - would be pointless, while not lessening the distraction of Brexit. “The shorter the extension, the more likely it is going to stay on the European agenda,” said one diplomat, from a country that favours a flexible approach.
Labour’s Dawn Butler has accused her of lying, because Corbyn did refer to the policy in his main speech. But others are talking tough, while the debate in parliament has not enhanced confidence in the British political system.
The Prime Minister has just lied to the house. @jeremycorbyn spoke and edorsed #PeoplesVote in yesterday's debate. I've located the text below. #Brexit #Brexitvote @BBCPolitics @SkyNews @SkyNewsBreak @Channel4News @channel5_tv @itvnews pic.twitter.com/ORF26oYZI7 “The damage is done. We know they are still putting party before country and humouring people who believe in fairies,” said one source, referring to the revived Malthouse compromise. “There was a feeling ‘wouldn’t it be better to have a dose of no deal to bring some sanity to the debate?’”
But, as HuffPost’s Paul Waugh points out, May seemed to be referring to the fact that Corbyn did not mention a public vote in his statement to MPs after May’s deal was defeated. But there is also wariness of no-deal Brexit and several ambassadors refused to accept a commission proposal that a second extension would be ruled out.
Corbyn did keep the option of PV open in his opening statement in debate (having not done so earlier in week). It was his failure to mention it after May defeat last night that some MPs objected to. This is what Michael Gove said in his response to Emma Reynolds, when she asked about indicative votes:
The Brexit debate is due to start at around 3.30pm. Theresa May will be opening it. It will run until 7pm, when MPs will vote. I think that, depending on how the house votes today, we may have an opportunity to vote on that proposition tomorrow. But one of the things that I think is important is that we, as quickly as we possibly can, find consensus.
There are six amendments on the order paper (pdf). And two more manuscript amendments have been tabled. Labour’s Emma Reynolds asks why the government won’t agree to indicative votes, as the Brexit committee recommends. (See 2.49pm.)
Two manuscript amendments tabled for the no-deal debate. pic.twitter.com/toIW9B6qz3 Gove says he thinks there could be a vote on this tomorrow. He goes on to say that, if a no-deal Brexit is rejected tonight, it will be important to “find consensus” as quickly as possible.
PMQs is now over. And Philip Hammond, the chancellor, is about to deliver his spring statement. Gove suggests government may support MPs being given indicative votes on Brexit alternatives. Echoing what Philip Hammond said earlier (see 1.36pm and 2.24pm.)
I will cover any Brexit-related news from the statement, but our main coverage of the statement will be on my colleague Graeme Wearden’s business live blog. Ken Clarke, the Tory pro-European, asks if the government will revoke article 50 if the EU refuses to extend article 50.
Spring statement: Philip Hammond reveals state of UK's economy and finances - live Gove says the UK cannot revoke article 50 and then trigger it again. The European court of justice has said that is not allowed, he says.
The Tory MP Alberto Costa says the media call his place a failing parliament. But there was nothing failing when it passed his amendment on the rights of British citizens in the EU three weeks ago. What has May done to get EU leaders to agree to this? Labour’s Hilary Benn asks why it is democratic to keep asking MPs to vote on the same idea, but undemocratic to ask the public if they want to change their mind.
May says she has spoken to a number of EU leaders about this. Gove claims the deal being voted on last night was significantly different from the one voted on in January.
Mark Pawsey, a Conservative, asks about Rugby council’s housebuilding programme. May says she is please to hear it is providing more homes. And he says Labour originally opposed a second referendum.
Mark Francois, the Tory Brexiter, says on 29 January the Commons, and most Tory MPs, voted for the Brady amendment (saying the backstop should be replaced). Brady was designed to facilitate the Malthouse compromise. If the Malthouse compromise amendment is called later, will Tories get a free vote, and how will May herself vote? Gove says May’s deal got more votes last night than it did in January.
May says she addressed this earlier. (See 12.33pm.) She says her agreement with the EU says alternative arrangements for the backstop should be worked up. That is what Malthouse was asking for, she says. He says MPs cannot dodge choices.
The Tory MP David Tredinnick asks May if Labour should allow a free vote on no deal tonight. Labour’s Angela Eagle rises to make a point of order. She says Gove has made it clear that the government intends to put the same motion to the Commons again and again. Is that allowed?
May says it would be better if all MPs had a free vote. John Bercow, the Speaker, says there are precedents for this. But he says at some point in the future he might have to rule on it.
The Tory MP Peter Bone asked May about the Malthouse compromise amendment. In her response, May said the government had already accepted two of its four demands (1 and 4 - see 11.22am for the full text) and that MPs were getting a vote on an article 50 extension. But on the key demand (number 3), she said it was unacceptable to the EU. Gove says it is now make-your-mind-up time for the Commons.
PMQs - Snap verdict: Profoundly uninspiring. There are times during national crisis when parliamentarians rise to the occasion. But there was no sign of that in those PMQs exchanges. Jeremy Corbyn was absolutely right, of course, when he said that Theresa May’s plan has been decisively rejected, but he did not get very far in challenging May to adopt Labour’s plan and he sounded relatively unengaged considering the seriousness of what is at stake. Although he highlighted some of the horrors of a no-deal Brexit, if anything he probably understated the potential problems, and sounded less passionate about the extent of the mess than he does when he is talking about issues like, say, homelessness or poverty. He restated the case for Labour’s Brexit, but he did not sound like someone poised to drive it through the House of Commons. Still, he had a a better case than May who, partly because of the problems with her voice, was literally pitiful. She had a carefully crafted soundbite (I may have lost my voice, but I understand the voice of the country), but it was not enough to restore her credibility. In the past, May has frequently accused Corbyn of wanting to stop Brexit (a surprise to those who have actually studied his record). But, interestingly, today she seemed to have dropped that line of attack, criticising him at one point for not restating his referendum policy yesterday and at another point highlighting his own Eurosceptic credentials. Labour’s Yvette Cooper asks Gove to confirm that, if the government motion is approved, the UK won’t leave the EU on 29 March without a deal.
Corbyn says Owen Paterson said during the referendum: “Only a madman would leave the single market”. With May’s deal decisively rejected, what is May now for? Labour’s plan is the only credible show in town. Gove says that that is what the motion is designed to prevent.
May says Corbyn says he opposes no deal, but he votes to bring it closer. Labour’s plan has been rejected several times by this house. She says she may not have her own voice, but she understands the voice of the country. People want to leave the EU, end free movement, have their own trade policy, and ensure laws are made in UK courts. Corbyn used to believe in this too. Why is he now against it? Gove says the government motion does not take no deal off the table. The only way you can do that is by passing a deal, or revoking article 50, he says.
Corbyn says May no longer has the ability to lead. It is rudderless. He says, where the PM has failed, the house needs to listen to the country. He says British citizens face uncertainty. May needs to show leadership. So what is her plan? The SNP’s Stewart McDonald says Gove is one of the senior authors of the mess he has just described. (See 3.24pm.) Does he feel any sense of responsibility? Will he apologise?
May says MPs will vote on no deal today, and then on extending article 50 tomorrow if no deal is rejected. MPs have to make choices. She says Corbyn does not agree with government policy, or even Labour policy. He has nothing to offer this country. Gove says he voted for the deal last night. The SNP did not. He accuses the SNP of sectional posturing.
Corbyn says the CBI have described a no-deal Brexit as as sledgehammer to the economy. Manufacturing is now in recession. May’s deal has been decisively rejected. When will May accept that there must be a negotiated customs union with the EU. Gove says farmers would face “very, very challenging circumstances” in the event of a no-deal Brexit.
May says the CBI says Labour’s policies would lead to a drop in living standards. Corbyn claims to be in favour of a second referendum. But he did not even refer to that last night. He says many businesses have made the preparations necessary to be able to carry on trading with the EU in the event of a no-deal Brexit.
Corbyn says May’s answer will not reassure people worried about their jobs. Food producers are also in despair. Will she now back close alignment to the single market to back their industry? The government can do many things to mitigate against the impact of no deal, he says.
May says her deal does include access to the EU on the basis of no tariffs. It would help if Corbyn had read it. But he says the UK cannot tell the EU what tariffs it must impose, and it cannot tell ports such as Calais what checks they should and should not impose.
Jeremy Corbyn also sends his condolences to those affected by the crash in Ethiopia. Dominic Grieve, the Conservative former attorney general, asks Gove to confirm that, if the government motion is passed, it will amend the EU Withdrawal Act to amend the date of Brexit.
He says May says the only choice is between her deal and no deal. Last night her deal was finished off. And she will not whip her MPs on no deal. How will she vote? Gove says May has given that commitment.
May says she will vote for the government motion.
May confirms she will vote to rule out a no-deal Brexit on 29 March.
Corbyn asks why May is still ambivalent about a no-deal outcome.
May says she wants a deal. Businesses want that too. One thing they worry about more than no deal is a Corbyn government.