Philip Hammond: No-deal Brexiters will cause deliberate harm to the economy
Chancellor Philip Hammond is set to issue a stark warning over the dangers of a no-deal Brexit, stating those in favour of leaving without a deal are advocating a deliberate act of harm on the economy.
In a speech to be made at the annual dinner of the Confederation of British Industry (CBI) tomorrow night, Hammond will warn there are some “on the populist right” who believe leaving without a deal is the only “truly legitimate” form of Brexit.
But he will say the government must keep pushing to find a compromise and avoid a shift to no-deal, which he states will be economically harmful.
The comments to industry bosses will follow fraught Cabinet discussions tomorrow afternoon over the details of Prime Minister Theresa May’s “new and improved” Brexit plan, which she hopes will be voted through parliament in June.
The issue of the UK’s departure from the EU has led to a deep rift within the Cabinet, and is a key battleground in the Tory leadership race, with May expected to set a date for her departure soon.
But Hammond will say there is no mandate for a no-deal Brexit, and warn that May’s successor could opt to end the Brexit impasse by forcing the UK out of the EU without a deal.
“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… in order to protect an ideological position which ignores the reality of Britain’s economic interests and the value of our union,” he will say.
The chancellor is also expected to say that the 2016 Leave campaign was “clear that we would leave with a deal”.
“So 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. Because all the preparation in the world will not avoid the consequences of no deal.”
The European Elections this week are set to be a stark reminder of division over Brexit, with polls putting Nigel Farage’s Brexit Party ahead with more than 30 per cent, with the Tories slipping to fourth place.
Despite the growing challenges, Hammond will vow to keep fighting for a negotiated Brexit. “We have an absolute obligation to protect Britain’s jobs, businesses and future prosperity,” he will say.