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Brexit: Hammond to warn Tories over no-deal 'hijack' Brexit: Hammond to warn Tories over no-deal 'hijack'
(about 8 hours later)
Chancellor Philip Hammond is to warn prospective Conservative leadership contenders against "hijacking" Brexit by "knowingly inflicting" a damaging no-deal exit on the economy.Chancellor Philip Hammond is to warn prospective Conservative leadership contenders against "hijacking" Brexit by "knowingly inflicting" a damaging no-deal exit on the economy.
In a speech to the CBI, he will urge Tories not to ape the "populist right" by claiming a clean break from the EU is the only "truly legitimate Brexit".In a speech to the CBI, he will urge Tories not to ape the "populist right" by claiming a clean break from the EU is the only "truly legitimate Brexit".
It comes as Theresa May prepares to discuss her Brexit plan with cabinet.It comes as Theresa May prepares to discuss her Brexit plan with cabinet.
No 10 has promised a "bold, new offer" to try to win over Labour MPs.No 10 has promised a "bold, new offer" to try to win over Labour MPs.
The Commons will vote on the Withdrawal Agreement Bill - legislation required to bring the withdrawal agreement negotiated with the EU into British law - in the first week of June.The Commons will vote on the Withdrawal Agreement Bill - legislation required to bring the withdrawal agreement negotiated with the EU into British law - in the first week of June.
MPs have rejected the withdrawal agreement three times and if the bill falls at the first attempt, the prime minister is likely to come under intense pressure from Conservatives to stand down.MPs have rejected the withdrawal agreement three times and if the bill falls at the first attempt, the prime minister is likely to come under intense pressure from Conservatives to stand down.
Talks with Labour on finding a compromise deal acceptable to their MPs broke down last week.Talks with Labour on finding a compromise deal acceptable to their MPs broke down last week.
But Downing Street hopes to appeal to Labour MPs committed to Brexit with new proposals to protect and enhance employment rights and environmental standards outside the EU.But Downing Street hopes to appeal to Labour MPs committed to Brexit with new proposals to protect and enhance employment rights and environmental standards outside the EU.
On Sunday, International Development Secretary Rory Stewart suggested the two sides were "half an inch apart" on key issues and "sensible" Labour MPs could be won round. 'Last rites'
The cabinet is also expected to discuss planning for a no-deal exit, which remains the default legal position if the UK does not agree a deal before the 31 October deadline for leaving. International Development Secretary Rory Stewart suggested on Sunday that the two sides were "half an inch apart" on key issues and "sensible" Labour MPs could be won round.
But shadow foreign secretary Emily Thornberry said her colleagues would vote against the Withdrawal Agreement Bill as she had heard there was "no radical difference" in what was being offered.
Ms Thornberry told BBC Radio 4's Today that Mrs May was simply engaging in "political theatre", knowing the bill was very likely to be rejected once again.
She said Labour was still pushing for a customs union with the EU and close alignment with the single market after Brexit.
However, Commons leader and Brexiteer Andrea Leadsom said she would back the bill "so long as it continues to be leaving the European Union", which she defined as being outside both of those structures.
She also stressed the need to be prepared for a no-deal Brexit, telling Today: "What I do think is that for any negotiation to succeed, you have to be prepared to walk away."
Remaining within a customs union would avoid the need for tariffs (taxes) to be imposed on goods moving between the UK and the EU, but many Brexiteers feel it would also prevent Britain making the clean break from Brussels that they want.
Within the Withdrawal Agreement Bill there are policies that Number 10 hopes would appeal to Brexiteers and also to MPs from Northern Ireland. But key for Theresa May are the measures she hopes will tempt some Labour MPs to vote for it - even though a formal deal with Jeremy Corbyn's front bench was never reached.
But there are two other things in particular that I think Labour MPs will be anxious to see - they'll also be points of tension when the cabinet goes through it this morning.
First off, how far do they stretch the spectrum on customs?
And second of all, how much temptation can they provide for those Labour MPs who are pushing for another referendum?
Now, Theresa May is not going to say "ah look here it is, it's now my plan there's going to be another referendum." That is never going to happen.
But I'm told there is something in this bill that will give MPs a chance to express their view on a further referendum.
It's tense because neither of those things - pushing the boat out on customs or dangling another public vote - are things the cabinet wants to offer at all.
Read more from Laura.
The cabinet is expected to discuss planning for a no-deal exit, which remains the default legal position if the UK does not agree a deal before the 31 October deadline for leaving.
But Mr Hammond will warn business leaders on Tuesday that there is "no mandate" for such an outcome and that even with "all the preparation in the world" it would be highly damaging.But Mr Hammond will warn business leaders on Tuesday that there is "no mandate" for such an outcome and that even with "all the preparation in the world" it would be highly damaging.
"To advocate for no deal is to hijack the result of the referendum and in doing so knowingly to inflict damage on our economy and our living standards," he will say."To advocate for no deal is to hijack the result of the referendum and in doing so knowingly to inflict damage on our economy and our living standards," he will say.
He will say he will continue to make the case for a negotiated exit, based on what he regards as the "absolute obligation to protect jobs, businesses and future prosperity".He will say he will continue to make the case for a negotiated exit, based on what he regards as the "absolute obligation to protect jobs, businesses and future prosperity".
"We need to be clear, that if we do not resolve this issue in the next few weeks, there is a real risk of a new prime minister abandoning the search for a deal, and shifting towards seeking a damaging no-deal exit as a matter of policy.""We need to be clear, that if we do not resolve this issue in the next few weeks, there is a real risk of a new prime minister abandoning the search for a deal, and shifting towards seeking a damaging no-deal exit as a matter of policy."
The fight to become the next Conservative leader has already - unofficially - begun, with a number of figures already confirming they will run. Among the names in the hat so far are Boris Johnson, Rory Stewart and Esther McVey.
If the UK left the EU without a deal, it would trade with the bloc using World Trade Organization rules.If the UK left the EU without a deal, it would trade with the bloc using World Trade Organization rules.
On Sunday, Brexit Party leader Nigel Farage said that was now "the only way the democratic will of the people can be delivered".On Sunday, Brexit Party leader Nigel Farage said that was now "the only way the democratic will of the people can be delivered".
The UK was originally due to leave the EU on 29 March, but the deadline was pushed back when MPs failed to approve Mrs May's deal.The UK was originally due to leave the EU on 29 March, but the deadline was pushed back when MPs failed to approve Mrs May's deal.
When the new deadline was announced, the government said it would "continue to make all necessary preparations" for a no-deal Brexit, after it was reported that departments had stood down their planning.When the new deadline was announced, the government said it would "continue to make all necessary preparations" for a no-deal Brexit, after it was reported that departments had stood down their planning.