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Hammond quits so Johnson can pick 'fully aligned' chancellor Boris Johnson facing a 'Gaukeward Squad' of departed ministers
(about 5 hours later)
Philip Hammond has quit as chancellor before Boris Johnson enters Downing Street. Boris Johnson will be forced to contend with a “Gaukeward Squad” of former cabinet ministers who have resigned from government determined to block a no-deal Brexit, senior party sources have warned.
Hammond, a staunch opponent of a no-deal Brexit, said the new prime minister should be “free to choose a chancellor who is fully aligned with his policy position”. The former chancellor Philip Hammond is expected to lead the group who stood down on Wednesday before they could be sacked by the new prime minister. They include David Gauke, the former justice secretary, Rory Stewart, the former international development secretary, and David Lidington who left the Cabinet Office.
His departure follows other key resignations including David Gauke as justice secretary, Rory Stewart as international development secretary and David Lidington as Cabinet Office minister. Mick Davis, the chief executive and treasurer of the Conservative party, also stood down on Wednesday morning. All are resolute opponents of a no-deal Brexit, and would join a group of former ministers including Sir Alan Duncan, Steve Brine, Anne Milton and Richard Harrington who have resigned in recent months because of their opposition to no deal.
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Johnson has repeatedly promised to take the UK out of the EU on 31 October, with or without a deal. In his resignation letter to Theresa May, Hammond said: “Despite the uncertainty created by the unresolved issue of Brexit, we have been able to make notable progress in rebuilding the public finances and preparing the British economy for the opportunities ahead.” It remains unclear whether Theresa May will join them after stepping down from office. She is believed to be concerned about the future of the union of the UK if Johnson leaves the EU without a deal, but pledged to support the new PM in a speech to parliament.
In a pointed message to Johnson, the outgoing chancellor said the headroom built up in the public finances could only be used for tax cuts and spending increases if a Brexit deal were secured. Johnson has repeatedly promised to take the UK out of the EU on 31 October, with or without a deal. Speaking outside 10 Downing Street, the new Tory leader said he would meet the deadline “no ifs or buts”.
In his letter to May before her resignation as prime minister, he said: “We bequeath to our successors genuine choices, once a Brexit deal is done: the ability to choose, within the fiscal rules, between increased public spending, reduced taxes, higher investment or progress towards faster debt reduction – or some combination of all four. Johnson and his new team will also have to win over other ministers who have been sacked from the cabinet. They include the outgoing foreign secretary, Jeremy Hunt, who was offered a different job but turned it down, the defence secretary, Penny Mordaunt, the international trade minister, Liam Fox, and James Brokenshire, who departed as communities secretary despite backing Johnson’s leadership campaign.
“After a decade when the aftermath of the 2008-09 recession meant we had no choices, this is a luxury which our successors should use wisely.” Hammond handed his resignation to May after her final session of prime minister’s questions. Others Johnson forced out on Wednesday include Greg Clark, the business secretary, Karen Bradley, the Northern Ireland secretary, the education secretary, Damian Hinds, and the Scottish secretary, David Mundell.
It is highly unlikely he would have been given a job by Johnson even if he had wished to carry on, given their differences over Brexit. Hammond resigned saying the new prime minister should be “free to choose a chancellor who is fully aligned with his policy position”.
In his resignation statement, Davis warned the Tories risked a “very bad outcome” of putting Jeremy Corbyn in No 10 if the party were not properly resourced. In a pointed message to Johnson, Hammond said the headroom built up in the public finances could only be used for tax cuts and spending increases if a Brexit deal were secured.
“After a decade when the aftermath of the 2008-09 recession meant we had no choices, this is a luxury which our successors should use wisely,” he said. Hammond handed his resignation to May after her final prime minister’s questions.
Johnson’s government will have a majority of just two if, as expected, the party loses the Brecon and Radnorshire byelection this month to the Liberal Democrats.
His majority was eroded further on Monday by the withdrawal of the whip from Charlie Elphicke, a Tory backbencher charged with three counts of sexual assault against two women.
It is highly unlikely that MPs could move against no deal before they break up for their summer recess at the end of July. A move is more likely during a narrow window of opportunity in September or October.
Tory MPs including Dominic Grieve and Oliver Letwin are liaising with colleagues and Labour frontbenchers over the best tactics.
Labour concede that it is unlikely that a motion of no confidence could be tabled before the summer recess.
The Tory rebels are prepared to give Johnson the summer to see if he can make headway towards coming to a fresh agreement with the EU that avoids no deal, but will make their moves against him after that if he takes the government full-tilt towards a no-deal Brexit.
One former minister said: “More than 40 Conservatives voted against no deal under May. Most are prepared to put everything on the line to stop a Boris no-deal.”
The cabinet departures followed other key resignations including Mick Davis, the chief executive and treasurer of the Conservative party, who also stood down on Wednesday morning.
The mining executive, who has been one of the party’s most generous donors over the past six years, wrote to Conservative benefactors on Wednesday, saying “one of my greatest bugbears has been the lack of unity in our party”.The mining executive, who has been one of the party’s most generous donors over the past six years, wrote to Conservative benefactors on Wednesday, saying “one of my greatest bugbears has been the lack of unity in our party”.
Johnson is expected to appoint another chief executive within days. John Griffin, the minicab tycoon who has given the party more than £4m over the past six years, said he would consider taking up the role if it were offered.Johnson is expected to appoint another chief executive within days. John Griffin, the minicab tycoon who has given the party more than £4m over the past six years, said he would consider taking up the role if it were offered.
In his letter, Davis said Johnson, who was elected leader on Tuesday and will become prime minister on Wednesday afternoon, “should be free to choose a team at CCHQ”.
He added: “Good politics is not a cheap exercise and if we are not properly resourced and financed, we will risk a very bad outcome – Jeremy Corbyn in No 10.”
Davis was a pivotal figure in the party’s structure under May and warned supporters in the spring that the Tories urgently needed more donations to stay afloat.
In March, Davis and Brandon Lewis, the party’s chair, addressed a private meeting of the 1922 Committee and told MPs the Conservatives were struggling to raise the £32m needed for the European elections campaign.
Griffin, a Brexiter and the founder of the cab company Addison Lee, has previously criticised Davis’s fundraising tactics for failing to encourage smaller donations from a wider group of members. On Wednesday, he said: “I would think about it [becoming chief executive] very carefully, but I realise that the new prime minister will have a lot to do right now. But we do need a change in direction to improve the party’s finances.”
Philip HammondPhilip Hammond
ConservativesConservatives
Conservative leadershipConservative leadership
Boris JohnsonBoris Johnson
Brexit
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