Hammond puts pressure on May to raise EU offer
PHILIP HAMMOND has put Theresa May under pressure to promise more money for the Brexit divorce bill by suggesting an improved offer will be made to Brussels within three weeks.
Asked if it would soon be clear “what the bill is going to be”, the Chancellor said he was “sure” Britain would set out its financial proposal to the EU in time for a crucial meeting of EU leaders on Dec 14.
But Brexiteers in the Cabinet are expected to use a crucial Cabinet Brexit committee meeting today to demand that Mrs May sets out exactly what Britain expects to get for its money before a penny more is promised.
Boris Johnson, who sits on the six-person committee, will try to block any move to pay a bigger divorce bill unless Mrs May can be clear about the “end state” she expects the EU to agree to. He is backed by his influential Cabinet ally Michael Gove. Mr Hammond’s comments contrast sharply with Mrs May’s public stance that Britain will pay around £18billion to the EU to honour its financial commitments during a two-year transition period.
She has accepted that the figure is “not the final word” on what Britain is prepared to pay, but both she and David Davis, the Brexit Secretary, have told the EU that it is their turn to compromise.
The Chancellor’s apparent attempt to force Mrs May’s hand will do nothing to improve their strained relationship ahead of Wednesday’s Budget, which could prove to be his last if it fails to inspire voters.
Mr Hammond told the BBC’S Andrew Marr: “We will meet our obligations to the European Union and we want to make progress in the discussions at the December
Council of the European Union. The Europeans have asked us for more clarity on what we mean by meeting our obligations.”
Asked if Britain will know in the next three weeks “what the bill is going to be”, Mr Hammond replied: “Well, we will make our proposals to the European Union in time for the Council, I’m sure about that.”
Mrs May will today chair a meeting of the Cabinet Brexit committee, whose other members are Mr Johnson, Mr Gove, Mr Davis, Amber Rudd and Damian Green. Ministers have expressed frustration that with the key EU summit less than a month away, they still do not know exactly what Britain wants from the EU – a sentiment shared by negotiators in Brussels. Mrs May insists Britain must be given a “bespoke” trade deal with the EU, but the EU has insisted that is not possible.
Mr Hammond and his fellow Remainers on the committee, Ms Rudd and Mr Green, are expected to tell Mrs May that she must make an enhanced financial offer to get trade talks moving, but an ally of Mr Johnson said: “If there’s going to be an increase in the money we should be clearer on what the end state should be.”
However, Brexiteers close to Mr Johnson and Mr Gove said yesterday that an enhanced financial offer to the EU did not necessarily constitute a “red line”.