Merlot Memo to save Brexit
tion rules – the so-called ‘no-deal’ scenario.’ Leading Brexiteer Jacob Rees-Mogg said last night: ‘The Government would do well to listen to the country’s leading entrepreneurial businessman rather than the EU-funded, oligopolybacking CBI.’
Tim Martin, boss of pub chain Wetherspoons, also backed Sir James. ‘It will mean Parliament can eliminate tariffs on non-EU food imports, which will reduce prices in shops overnight – contrary to the popular myth. Peter Hargreaves, of investment com-
‘That would leave us over a barrel’ ÷Boris and Gove drafted letter to May as they shared bottle of wine ÷Former rivals warned PM to ignore Cabinet Bremoaners like Chancellor
THERESA May faced a fresh Cabinet rift last night as a leaked letter revealed Boris Johnson and Michael Gove have secretly been urging her to take on Chancellor Philip Hammond.
The two big beasts of the Brexit campaign fell out last year after Mr Gove spectacularly torpedoed Mr Johnson’s Tory leadership hopes.
But yesterday it emerged that they have buried the hatchet and formed a new alliance in order to protect Brexit from diehard Remainers in the Cabinet.
In a joint letter, Mr Johnson and Mr Gove encouraged the Prime Minister to ‘clarify the minds’ of those not demonstrating ‘sufficient energy’ over the country’s Brexit plans.
The message appears to be a thinly veiled attack on Mr Hammond. The Chancellor has faced criticism for wanting a softer Brexit and angered Cabinet colleagues by refusing to release cash to prepare for the country’s departure. As Andrew Pierce reports on the facing page, Foreign Secretary Mr Johnson and Environment Secretary Mr Gove put their Brexit blueprint together over a bottle of Merlot at a private meeting in September.
In the letter to the Prime Minister they wrote: ‘Your approach is governed by sensible pragmatism. That does not in any way dilute our ambition to be a fully independent self-governing country by the time of the next election. If we are to counter those who wish to frustrate that end, there are ways of underlining your resolve.
‘We are profoundly worried that in some parts of Government the current preparations are not proceeding with anything like sufficient energy.
‘We have heard it argued by some that we cannot start preparations on the basis of “No Deal” because that would undermine our obligation of “sincere co-operation” with the EU. If taken seriously, that would leave us over a barrel in 2021.’
Mr Johnson and Mr Gove also used the missive to insist that transition arrangements for Britain’s exit from the EU must end on June 30, 2021.
The term ‘sincere co-operation’ was used by Mr Hammond in a speech in June, when the Chancellor told an audience in Berlin: ‘We will engage, in a spirit of sincere co-operation.’
The letter, titled EU Exit – Next Steps, is marked ‘For your and Gavin’s eyes only’, a reference to the PM’s chief of staff Gavin Barwell. It is thought it was delivered to Number 10 at the start of October, shortly before Mr Hammond sparked a public row by refusing to allocate cash to prepare for a no deal scenario.
The Chancellor infuriated Downing Street by writing an article for The Times in which he suggested it would be irresponsible to start making costly preparations now.
Mrs May issued a public rebuke within hours, making it clear that the Treasury would be required to fund planning for all eventualities.
The Prime Minister had planned to sack her Chancellor after the election last June but was too weakened to carry out the purge after losing her Commons majority.
Speculation is mounting that Mr Hammond could be axed in a New Year reshuffle if this month’s Budget is a flop.
Mr Gove yesterday refused to comment on the letter, but revealed he would not block Mrs May if she decides to hand over extra cash to Brussels to secure a good exit deal.
The Prime Minister and Brexit Secretary David Davis should be ‘given the flexibility’ they need to secure a good deal, the Environment Secretary said.
He told BBC One’s The Andrew Marr Show that the Government is ‘doing everything we can’ to secure a good deal but is making sure that whatever happens in the talks, Britain can ‘make the best of them’.