Hammond: Only ‘very modest’ changes after Brexit

‘Cowed by the EU’

THE Tories were at war over Brexit last night after Philip Hammond said 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.

Amid No 10 alarm at the backlash, Mr Hammond was last night forced to issue a partial ‘clarification’, insisting he stood by Tory pledges to make a clean break with the EU.

It came as sources on the powerful Conservative 1922 Committee of MPs yesterday refused to comment on claims that at least 40 Tory MPs have sent letters to chairman Sir Graham Brady expressing no confidence in Theresa May.

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’.

In a speech to a CBI event at the annual gathering of the global elites at Davos, the Chancellor praised the CBI’s ‘focus on securing the closest possible future relationship between the EU and the UK, post-Brexit’.

On Britain’s future relationship with the EU, he suggested there would be 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.’

Downing Street initially ducked questions about Mr Hammond’s comments. But a source later said: ‘The Government’s policy is that we are leaving the single market and the customs union.’

In tweets last night, Mr Hammond said he was clear Britain would leave the EU next year and be ‘outside the customs union and the single market’.