Osborne knifes Theresa – twice
He attacks ‘naive’ approach to Brexit talks Then praises minister who quits over China
GEORGE Osborne and his allies were accused of ‘sour grapes’ last night after launching an extraordinary double assault on Theresa May’s government.
The former chancellor used a speech in Chicago to attack ministers for their ‘naive’ approach to Brexit – and urged Mrs May to delay divorce proceedings with Brussels.
Hours later, one of his key allies became the first minister to quit the new government, hinting at concerns that Mr Osborne’s legacy was being watered down by the new regime.
Lord O’Neill of Gatley, who was recruited by Mr Osborne, stunned the Prime Minister by informing her he was quitting his job as a Treasury minister and resigning from the Conservative Party.
In his resignation letter, Lord O’Neill questioned Mrs May’s commitment to Mr Osborne’s Northern Powerhouse scheme and her loosening of ties with China.
Mr Osborne pointedly praised Lord O’Neill yesterday, saying he had made a
‘Without any humility’
‘big difference’ and warning that his departure was ‘a loss’ to the Government.
Speaking in Chicago, he also questioned the Government’s strategy on Brexit.
Mr Osborne, the architect of ‘Project Fear’, suggested claims by ministers – including Mrs May – that the EU would have to give Britain a favourable exit deal were unrealistic. ‘I find some of the take it or leave it bravado we hear from those who assume Europe has to give us everything we want more than a little naive,’ he said.
‘We need to be realistic that this is a two-way relationship – that Britain cannot expect to maintain all the benefits that came from EU membership without incurring any of the costs of the obligations. There will have to be compromise.’
Calling for the UK to remain as close as possible to the single market, he said trade with the rest of the world could never replace the potential losses if Britain loses full access to its biggest market. He added: ‘Brexit won a majority. Hard Brexit did not. The mainstream majority in our country do not want to be governed from the extremes.’
Mr Osborne also used an interview with the Financial Times to suggest he has not given up hope of returning to front line politics – or even leading his party – despite his ignominious exit from Government in the wake of the referendum.
Eurosceptic Conservative MP Jacob Rees-Mogg said Mr Osborne appeared to be in denial about the referendum result. ‘Saying you want to stay in the single market is code for saying you don’t accept the result of the referendum,’ he said. ‘That is basically denying democracy.
‘The Leave campaign was very clear about this – we didn’t want free movement, we didn’t want sovereignty of EU law and we didn’t want to pay into the EU budget – all of that is incompatible with being in the single market.
‘People voted to leave the EU – there is no soft exit.
‘People will also remember that George Osborne warned during the campaign that we would have all these disasters if we left, none of which have happened. He has no credibility as a forecaster. This is just sour grapes.’
Former Tory leader Iain Duncan Smith added: ‘He seems to be without any humility at all and rather than go away and think about everything, he’s going to tell everyone he got everything right and should be running the country.
‘I think No10’s best response would be to ignore it.’
Lord O’Neill, a former Goldman Sachs economist, said in his resignation letter that he was leaving because he had completed a review of antimicrobial resistance – the rise of superbugs.
He said he was glad the PM now ‘appeared’ to be backing both the Northern Powerhouse and closer links with China. Lord O’Neill said he had primarily joined the Government ‘for the specific purpose of helping deliver the Northern Powerhouse, and to help boost our economic ties with key growing economies around the world, especially China and India and other rapidly emerging economies’.
He added: ‘The case for both to be at the heart of British economic policy is even stronger following the referendum, and I am pleased that, despite speculation to the contrary, both appear to be commanding your personal attention.’
Mrs May said she was ‘sorry’ Lord O’Neill was leaving and paid tribute to his work. Government sources said the PM was fully committed to the Northern Powerhouse and to building trade links outside the EU.