This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/politics/live/2019/jul/30/boris-johnson-prime-minister-brexit-news-warned-no-deal-brexit-could-lead-to-farmers-blocking-roads-in-protest-live-news
The article has changed 15 times. There is an RSS feed of changes available.
| Version 11 | Version 12 |
|---|---|
| Brexit will be 'catastrophic', first minister tells Boris Johnson ahead of his visit to Wales - live news | Brexit will be 'catastrophic', first minister tells Boris Johnson ahead of his visit to Wales - live news |
| (32 minutes later) | |
| This is what Jim O’Neill, the former Goldman Sachs economist and former Treasury minister, told the World at One about how government policies are driving down the value of sterling. (See 2.29pm.) O’Neill started by stressing that it was hard to predict what currencies would do, and that the value of currencies could go up as well as down. But he went on: | |
| We have got the ingredients of quite a challenge here with the pound. In my many former years [as a Goldman Sachs economist] I would have a little quadrant of different policy combinations and what they would mean for a currency ... In addition to the obviously increased no deal Brexit risk, I think the markets are also now looking at a government that might be leaning on an independent central bank, possibly including the choice of its new governor, as well as ... having a free lunch on an expansionary fiscal policy. An expansionary fiscal policy and an expansionary monetary policy combination used to be what one would associate with the Italian lira and Latin American currencies. So those, on top of a no Brexit risk, are essentially all pointing one way for the pound. | |
| O’Neill said he was not involved in currency trading any more. But he then went on: | |
| I’m pretty sure that a lot of big foreign exchange and hedge fund-type people have had a pretty tricky life for the past few years for a whole host of reasons and they are probably looking at what’s being said coming out of the UK as almost close to a free lunch; that you’ve got a government that is deliberately promoting the no deal risk, and one that is talking so adventurously, let’s call it, about monetary and fiscal policy too. The world I was in, a lot of them are saying, ‘Thank goodness for Boris, he’s giving us a chance to make some money.’ | |
| Boris Johnson has been visiting a chicken farm in Wales. | |
| Coincidentally Johnson visit coincides with the Daily Mirror splashing on the news that Lee Cain, his director of communications, used to pursue Tory politicians dressed as a chicken as a tabloid stunt when he was working for the paper during the 2010 general election. | |
| MIRROR: Boris hires Mirror chicken as adviser #tomorrowspaperstoday pic.twitter.com/CUfYIfgwbM | |
| According to Downing Street, apart from a few Lords appointments, the government reshuffle has now been completed. In due course a full list of ministers should appear on the government’s website here. | According to Downing Street, apart from a few Lords appointments, the government reshuffle has now been completed. In due course a full list of ministers should appear on the government’s website here. |
| Number 10 has also sent out a list of all the ministers who have, as they put it, “left the government”. That means it’s mostly a list of ministers who have been sacked, although some may have refused to accept demotions, like Jeremy Hunt, and others may have indicated they wanted to go, like Chris Grayling. | Number 10 has also sent out a list of all the ministers who have, as they put it, “left the government”. That means it’s mostly a list of ministers who have been sacked, although some may have refused to accept demotions, like Jeremy Hunt, and others may have indicated they wanted to go, like Chris Grayling. |
| This list understates the full scale of change because it does not include five ministers who resigned before Boris Johnson had the chance to sack them: Philip Hammond, the chancellor; David Lidington, the Cabinet Office minister; David Gauke, the justice secretary; Rory Stewart, the international development secretary. | This list understates the full scale of change because it does not include five ministers who resigned before Boris Johnson had the chance to sack them: Philip Hammond, the chancellor; David Lidington, the Cabinet Office minister; David Gauke, the justice secretary; Rory Stewart, the international development secretary. |
| Here is the Number 10 list of ministers who have left the government. | Here is the Number 10 list of ministers who have left the government. |
| Cabinet ministers who have gone (10) | Cabinet ministers who have gone (10) |
| Jeremy Hunt, foreign secretary | Jeremy Hunt, foreign secretary |
| Penny Mordaunt, defence secretary | Penny Mordaunt, defence secretary |
| Liam Fox, international trade secretary | Liam Fox, international trade secretary |
| Greg Clark, business secretary | Greg Clark, business secretary |
| Chris Grayling, transport secretary | Chris Grayling, transport secretary |
| Damian Hinds, education secretary | Damian Hinds, education secretary |
| James Brokenshire, housing secretary | James Brokenshire, housing secretary |
| Jeremy Wright, culture secretary | Jeremy Wright, culture secretary |
| Karen Bradley, Northern Ireland secretary | Karen Bradley, Northern Ireland secretary |
| David Mundell, Scottish secretary | David Mundell, Scottish secretary |
| Ministers attending cabinet who have gone (2) | Ministers attending cabinet who have gone (2) |
| Mel Stride, leader of the Commons | Mel Stride, leader of the Commons |
| Claire Perry, energy minister | Claire Perry, energy minister |
| Other ministers (11) | Other ministers (11) |
| Caroline Nokes, immigration minister | Caroline Nokes, immigration minister |
| Stephen Hammond, health minister | Stephen Hammond, health minister |
| George Hollingberry, international trade minister | George Hollingberry, international trade minister |
| John Penrose, Northern Ireland minister | John Penrose, Northern Ireland minister |
| Mark Field, Foreign Office minister | Mark Field, Foreign Office minister |
| Robert Goodwill, environment minister | Robert Goodwill, environment minister |
| Harriet Baldwin, Foreign Office minister | Harriet Baldwin, Foreign Office minister |
| Tobias Ellwood, defence minister | Tobias Ellwood, defence minister |
| Jackie Doyle-Price, health minister | Jackie Doyle-Price, health minister |
| Andrew Jones, transport minister | Andrew Jones, transport minister |
| Lord Bourne of Aberystwyth, a housing minister | Lord Bourne of Aberystwyth, a housing minister |
| According to Dan Bloom at the Mirror, Boris Johnson’s chief adviser on Brexit, David Frost, argued earlier this year that it would be a mistake for the UK to agree to continue matching EU rules on workers’ rights after Brexit. | According to Dan Bloom at the Mirror, Boris Johnson’s chief adviser on Brexit, David Frost, argued earlier this year that it would be a mistake for the UK to agree to continue matching EU rules on workers’ rights after Brexit. |
| In his first speech as prime minister, a week ago tomorrow, Boris Johnson declared: | In his first speech as prime minister, a week ago tomorrow, Boris Johnson declared: |
| The people who bet against Britain are going to lose their shirts. | The people who bet against Britain are going to lose their shirts. |
| But it turns out, because of the way Johnson’s government has talked up the prospect of a no deal Brexit, currency traders are doing quite well betting against Britain. At least, that’s what Jim O’Neill, the former Goldman Sachs economist and former Treasury minister, told the World at One. | But it turns out, because of the way Johnson’s government has talked up the prospect of a no deal Brexit, currency traders are doing quite well betting against Britain. At least, that’s what Jim O’Neill, the former Goldman Sachs economist and former Treasury minister, told the World at One. |
| Jim O’Neil, ex Goldman on @BBCWorldatOne: “A lot of big foreign exchange and hedge fund type people [are] probably looking at what’s coming out the UK as almost close to a free lunch... [A lot] are saying thank goodness for Boris, he’s giving us a chance to make some money.” | Jim O’Neil, ex Goldman on @BBCWorldatOne: “A lot of big foreign exchange and hedge fund type people [are] probably looking at what’s coming out the UK as almost close to a free lunch... [A lot] are saying thank goodness for Boris, he’s giving us a chance to make some money.” |
| Here is the Irish government’s readout of Boris Johnson’s conversation with Leo Varadkar, the taoiseach. It says Varadkar told Johnson that the EU was “united in its view that the withdrawal agreement could not be reopened” and that no “satisfactory” alternatives to the backstop had yet been identified. | Here is the Irish government’s readout of Boris Johnson’s conversation with Leo Varadkar, the taoiseach. It says Varadkar told Johnson that the EU was “united in its view that the withdrawal agreement could not be reopened” and that no “satisfactory” alternatives to the backstop had yet been identified. |
| Here’s the statement issued by @merrionstreet following my call with @Borisjohnson pic.twitter.com/2WyjtTNmVg | Here’s the statement issued by @merrionstreet following my call with @Borisjohnson pic.twitter.com/2WyjtTNmVg |
| When Boris Johnson is in Wales this afternoon, he is likely to be asked what will happen to Welsh farmers if a no deal Brexit leads to the EU imposing tariffs on meat imports. | When Boris Johnson is in Wales this afternoon, he is likely to be asked what will happen to Welsh farmers if a no deal Brexit leads to the EU imposing tariffs on meat imports. |
| According to this report from the Shropshire Star, when Johnson was asked about this during the Tory leadership campaign last month, he claimed that in practice there would be no tariffs. The report says: | According to this report from the Shropshire Star, when Johnson was asked about this during the Tory leadership campaign last month, he claimed that in practice there would be no tariffs. The report says: |
| Mr Johnson said he did not believe it remotely likely that the EU would want to impose import tariffs on British goods if a deal could not be reached. | Mr Johnson said he did not believe it remotely likely that the EU would want to impose import tariffs on British goods if a deal could not be reached. |
| “Obviously we have got to prepare for every scenario possible, but I don’t think there is any chance that the EU would want to start putting tariffs on trade with Britain again, something we have not done since the Napoleonic days of continental Europe,” he said. | “Obviously we have got to prepare for every scenario possible, but I don’t think there is any chance that the EU would want to start putting tariffs on trade with Britain again, something we have not done since the Napoleonic days of continental Europe,” he said. |
| “People need to be confident and courageous, I believe there is plenty of time to come to a trading arrangement that benefits both Britain and the EU. | “People need to be confident and courageous, I believe there is plenty of time to come to a trading arrangement that benefits both Britain and the EU. |
| “I think we have got to be a bit less timid and a lot less defeatist in our dealings with the EU.” | “I think we have got to be a bit less timid and a lot less defeatist in our dealings with the EU.” |
| Johnson is unlikely to try using the same argument again - because it is not true. Under WTO trade rules, without a trade deal, the EU could not drop tariffs for meat imports from the UK without dropping them for everyone else. | Johnson is unlikely to try using the same argument again - because it is not true. Under WTO trade rules, without a trade deal, the EU could not drop tariffs for meat imports from the UK without dropping them for everyone else. |
| Thanks to tangerineblue in the comments for flagging this up. | Thanks to tangerineblue in the comments for flagging this up. |
| Here is a question from below the line that is worth addressing. | Here is a question from below the line that is worth addressing. |
| Andrew (@Andrew?) I don't quite understand why British farmers aren't just planning to sell their meat to British people when tariffs both ways across the channel go up. Surely as the cost of meat from the EU goes up we will import less? | Andrew (@Andrew?) I don't quite understand why British farmers aren't just planning to sell their meat to British people when tariffs both ways across the channel go up. Surely as the cost of meat from the EU goes up we will import less? |
| The best explanation I’ve read is this one, from the Beef and Lamb Matters blog. Here is an extract. | The best explanation I’ve read is this one, from the Beef and Lamb Matters blog. Here is an extract. |
| A question we’re often asked though is, ‘if we’re self sufficient, why does the UK import so much sheep meat?’ The reasons are numerous and complex but can broadly split into four areas – historic, market, seasonal and economic. | A question we’re often asked though is, ‘if we’re self sufficient, why does the UK import so much sheep meat?’ The reasons are numerous and complex but can broadly split into four areas – historic, market, seasonal and economic. |
| The UK has been importing New Zealand sheep meat for 130 years, with unrestricted imports until 1973 when the UK joined the European Economic Community (EEC). At the time, the UK was only circa 40 per cent self sufficient. To give it some context, prior to joining the EEC, the UK took the vast majority of New Zealand’s lamb exports – 86 per cent in 1970. Today the UK takes around 20 per cent and in 2012 China overtook the UK as the primary destination for New Zealand lamb. | The UK has been importing New Zealand sheep meat for 130 years, with unrestricted imports until 1973 when the UK joined the European Economic Community (EEC). At the time, the UK was only circa 40 per cent self sufficient. To give it some context, prior to joining the EEC, the UK took the vast majority of New Zealand’s lamb exports – 86 per cent in 1970. Today the UK takes around 20 per cent and in 2012 China overtook the UK as the primary destination for New Zealand lamb. |
| From 1972 to 1999, the UK sheep flock grew from 27.9 million head to 44.7 million head, with the UK’s self sufficiency rate increasing to 95 per cent to coincide with increasing production. Increasing production drove rising UK export volumes and, despite a fall in the 2000s, today the UK exports around 100,000 tonnes. | From 1972 to 1999, the UK sheep flock grew from 27.9 million head to 44.7 million head, with the UK’s self sufficiency rate increasing to 95 per cent to coincide with increasing production. Increasing production drove rising UK export volumes and, despite a fall in the 2000s, today the UK exports around 100,000 tonnes. |
| However, while the UK market is technically self-sufficient, it is not functionally self sufficient. The UK demands a larger volume of higher end cuts such as legs and chops, while UK exports consist mainly of carcases and a large proportion of low value cuts to emerging markets. | However, while the UK market is technically self-sufficient, it is not functionally self sufficient. The UK demands a larger volume of higher end cuts such as legs and chops, while UK exports consist mainly of carcases and a large proportion of low value cuts to emerging markets. |
| Downing Street has just sent out the readout of Boris Johnson’s call with Leo Varadkar, his Irish opposite number. Here it is in full. | Downing Street has just sent out the readout of Boris Johnson’s call with Leo Varadkar, his Irish opposite number. Here it is in full. |
| The taoiseach congratulated the prime minister on his appointment and both leaders underscored their commitment to working closely together in the spirit of the warm and deep relationship between the UK and Ireland. | The taoiseach congratulated the prime minister on his appointment and both leaders underscored their commitment to working closely together in the spirit of the warm and deep relationship between the UK and Ireland. |
| On the process of restoring the executive and assembly in Northern Ireland, both leaders expressed their determination to see this happen as quickly as possible. | On the process of restoring the executive and assembly in Northern Ireland, both leaders expressed their determination to see this happen as quickly as possible. |
| The prime minister said the ongoing talks have his unequivocal support and that he wanted to continue to work closely with the Irish government to help drive the process towards a successful conclusion. | The prime minister said the ongoing talks have his unequivocal support and that he wanted to continue to work closely with the Irish government to help drive the process towards a successful conclusion. |
| He said he looked forward to visiting Northern Ireland shortly and talking to the leaders of the five main parties about this. | He said he looked forward to visiting Northern Ireland shortly and talking to the leaders of the five main parties about this. |
| On Brexit, the prime minister made clear that the UK will be leaving the EU on October 31, no matter what. | On Brexit, the prime minister made clear that the UK will be leaving the EU on October 31, no matter what. |
| He said that in all scenarios, the government will be steadfast in its commitment to the Belfast agreement and will never put physical checks or physical infrastructure on the border. | He said that in all scenarios, the government will be steadfast in its commitment to the Belfast agreement and will never put physical checks or physical infrastructure on the border. |
| The prime minister made clear that the government will approach any negotiations which take place with determination and energy and in a spirit of friendship, and that his clear preference is to leave the EU with a deal, but it must be one that abolishes the backstop. | The prime minister made clear that the government will approach any negotiations which take place with determination and energy and in a spirit of friendship, and that his clear preference is to leave the EU with a deal, but it must be one that abolishes the backstop. |
| The two leaders agreed to stay in contact. | The two leaders agreed to stay in contact. |
| “Boosterism” may turn out to be a more accurate description of Boris Johnson’s modus operandi than his team thought then they briefed the Daily Mail about it. See the update to my 11.39am post for more. | “Boosterism” may turn out to be a more accurate description of Boris Johnson’s modus operandi than his team thought then they briefed the Daily Mail about it. See the update to my 11.39am post for more. |
| This is from Mark Drakeford, the Labour first minister of Wales, who is meeting Boris Johnson later. | This is from Mark Drakeford, the Labour first minister of Wales, who is meeting Boris Johnson later. |
| I will give a very clear message to @10DowningStreet today - Brexit will be catastrophic for Wales – it will decimate our agricultural and manufacturing sectors & risks ripping the Union apart. The PM must stop playing fast and loose with our country. | I will give a very clear message to @10DowningStreet today - Brexit will be catastrophic for Wales – it will decimate our agricultural and manufacturing sectors & risks ripping the Union apart. The PM must stop playing fast and loose with our country. |
| Six days after becoming prime minister, Boris Johnson has finally spoken to Leo Vardakdar, his Irish opposite number and one of the most important EU leaders in the Brexit negotiations, the Irish Times’s Denis Staunton reports. Yesterday Johnson was criticised for not already have spoken to the taoiseach. | Six days after becoming prime minister, Boris Johnson has finally spoken to Leo Vardakdar, his Irish opposite number and one of the most important EU leaders in the Brexit negotiations, the Irish Times’s Denis Staunton reports. Yesterday Johnson was criticised for not already have spoken to the taoiseach. |
| Boris Johnson and Leo Varadkar have just spoken by phone in a call UK sources describe as warm. | Boris Johnson and Leo Varadkar have just spoken by phone in a call UK sources describe as warm. |