Tory Brexit war breaks out
Fears of new leadership threat to May as Hammond enrages the EU sceptics
DOUBTS were raised about Theresa May’s leadership last night after the Tories were plunged into war by Philip Hammond saying leaving the EU would result in only ‘very modest’ change.
The Chancellor sparked uproar among Eurosceptic MPs after he said Britain would stay in a ‘customs arrangement’ with the EU – and suggested free movement might continue in all but name.
The ferocious backlash led No 10 to disown the remarks and forced Mr Hammond to issue a partial ‘clarification’, insisting he stood by Tory pledges to make a clean break with the EU.
It came amid claims that at least 40 MPs have sent letters to Sir Graham Brady, chairman of the 1922 Committee of Tory backbenchers, expressing no confidence in Mrs May. There needs to be 48 names to spark a leadership contest. It is understood that some of the Prime Minister’s critics believe she is too ‘timid’ to achieve a clean Brexit.
Prominent Eurosceptic Jacob Rees-Mogg said it was now clear Brexit was ‘at risk’, as Cabinet Remainers, led by Mr Hammond, attempt to water it down beyond recognition.
He said some ministers appeared to be ‘cowed by the EU’ and warned they were in danger of throwing away the ‘great Brexit opportunity’.
In a speech in Hampshire he accused the Chancellor and other pro-Remain ministers of treating Brexit negotiations as a ‘damage limitation exercise’.
He said: ‘The British people did not vote for that. They did not vote for the management of decline.
‘They voted for hope and opportunity and politicians must now deliver it. If we do not, if we are timid and cowering and terrified of the future, then our children and theirs will judge us in the balance and find us wanting.’
Mr Rees-Mogg said remaining in close alignment with the EU was ‘unacceptable’, as it would make it impossible for the UK to compete in fast-growing world markets.
‘There is a great Brexit opportunity and some really obvious benefits that we can get that improve the condition of the people,’ he said.
‘This is currently at risk. The negotiations that are about to begin sound as if they aim to keep us in a similar system to the single market and the customs union. “Close alignment” means de facto the single market, it would make the UK a rule-taker like Norway, divested of even the limited influence we currently have.’
Privately, some Tory MPs warned that Mrs May’s tenure as premier would be put in jeopardy unless she reined in the Chancellor and made it clear she would stick to her Brexit pledges.
Former Tory leader Iain Duncan Smith said Mr Hammond was guilty of ‘undermining’ the PM at a critical time.
Andrew Percy, another former Tory minister, told Mr Hammond bluntly to ‘put a sock in it, Phil’. The row came as senior Tories urged the Prime Minister to ‘get a grip’ on her warring Cabinet after days of leaks and toxic briefings.
Behind the scenes, Mr Hammond is leading a group of Cabinet Remainers locked in battle with Leavers led by Boris Johnson over the fate of Brexit.
The row burst into the open yesterday after he delivered an incendiary speech to a CBI event at the annual gathering of the global elites at Davos.
The Chancellor praised the CBI for ‘its focus on securing the closest possible future relationship between the EU and the UK, post Brexit’.
Describing Britain’s future relationship with the EU, he suggested there would be only minimal change, adding: ‘We are taking two completely interconnected and aligned economies with high levels of trade and selectively moving them, hopefully very modestly apart.’
He suggested free movement would remain in all but name, saying: ‘We want to maintain the closest possible relationship in people to people exchanges.’
Downing Street initially ducked questions about Mr Hammond’s comments. But, as Tory anger grew, a source later issued a reprimand, saying: ‘The Government’s policy is that we are leaving the single market and the customs union.
‘Whilst we want a deep and special economic partnership with the EU after we leave, these could not be described as very modest changes.’
In a series of messages on Twitter last night, the Chancellor said he was clear that Britain would leave the EU next year and would be ‘outside the customs union and the single market’.
Former Cabinet minister Owen Paterit,
‘Put a sock in Phil’
‘Should not be in Government’
son said Mr Hammond should quit if he could not reconcile himself to Brexit.
He said: ‘the Chancellor needs to follow Government policy. if this speech represents what he really thinks then he should not be in Government.’
tory grandee Bernard Jenkin said he was ‘very uncomfortable’ with the idea of pursuing a transition deal at all, adding: ‘We need to see what safeguards are in place to ensure that we are not just subjected to foreign rule during that period. And it will only be worth it if the deal at the end of it is what we want, other concern wise it will not be worth it.’ the row last night reignited concerns about Mrs May’s leadership. tory MPs have privately raised with party whips in recent days about the damage caused by Cabinet infighting – and the lack of Government direction, particularly on Brexit.
A senior eurosceptic said a calculated push was underway by to highlight concern about the Government’s direction on Brexit. He said: ‘We have been nice, nice, nice to the Government… But that is changing very fast – we are going from nought to 60 in terms of raising concerns.’
The British people did not vote for the management of decline. They voted for hope and opportunity Jacob Rees-Mogg
We are taking two interconnected and aligned economies... and selectively moving them, hopefully very modestly apart Philip Hammond