UK finance minister’s future questioned

BRITAIN’S finance minister Philip Hammond faced mounting questions yesterday over his future, weeks ahead of a budget announcement – as he finds himself at the centre of an increasingly fraught debate over Britain’s departure from the EU.

The EU last week declared a “disturbing deadlock” in talks with Prime Minister Theresa May’s government on arrangements to leave the bloc, raising the chances of Britain quitting without a negotiated deal and thereby increasing criticism of the government’s handling of Brexit.

Concerned

Yesterday an unnamed source from the Democratic Unionist Party (DUP) said May must warn Hammond he faces the sack unless he changes his approach to Brexit, the Sunday Telegraph reported. The DUP is a small Northern Irish political party which is keeping May’s minority government in power.

“We are very concerned about Philip Hammond’s behaviour,” the senior parliamentary DUP source told the newspaper.

“It is evident to us that he is winding people up and causing unnecessary division within the Conservative Party at a crucial time in the Brexit negotiations.” A DUP spokesperson later said that the party did not recognise the “inaccurate” comments.

“He is winding people up and causing division within the party at a crucial time in the negotiations.”

Hammond, 61, who is seen by many as May’s most pro-EU minister, has become a focal point of criticism for Brexiteers, who say he is overly pessimistic about the impact of leaving the bloc and is damaging Britain’s negotiating stance.

Last week Hammond warned that Brexit was causing a “cloud of uncertainty” over the British economy that needed to be cleared as quickly as possible. He has previously angered euro-sceptics by calling for a lengthy transition out of the EU, during which there will be little noticeable change to rules on issues like immigration.

In a botched attempt on Friday to calm speculation over his future and play down the party’s divisions, Hammond described the EU as the “enemy” in negotiations. He later said he regretted his choice of words.

He had been expected to lose his job if May had won an increased majority at a June snap election, but the vote instead saw the Conservatives lose their majority and Hammond retain his position as May fought to maintain unity between pro-EU and pro-Brexit factions

Delicate arithmetic

The June election transformed the DUP, which has only 10 MPs in the 650-seat parliament, into an influential voice. May struck a deal with the party and is reliant on it to pass legislation.

The delicate parliamentary arithmetic also means May faces criticism from lawmakers, including from her own party, who disagree with her threat to walk away from EU negotiations.

The opposition Labour Party’s finance policy chief warned that with the support of rebels from May’s party, parliament would block any attempt to leave the EU without a negotiated agreement.