Cabinet at loggerheads over life after the EU
Ministers express their frustration as Prime Minister disallows talks over Britain’s ‘end state’
CABINET tensions over Brexit emerged last night after Philip Hammond disclosed that Theresa May had not allowed her ministers to discuss the “end state” of life beyond the EU. Sources have expressed “frustration” over Brexit negotiations, with trade talks with the EU possibly just days away.
The Chancellor said that senior ministers had only held “general discussions” about Britain’s post-brexit relationship with the EU but insisted it would be “premature” to hammer out the Government’s desired destination before the second phase of negotiations.
He also clashed with Downing Street over the so-called Brexit divorce bill, telling MPS that Britain would pay regardless of the outcome of the negotiations – a position that has not been supported by Downing Street.
Mr Hammond’s admission that the Brexit “end state” had not been discussed came during an appearance before the Treasury Select Committee. He told MPS: “That is something that will be done first in the sub-committee that has been constituted to deal with this issue and of course logically that will happen once we have confirmation that we have reached sufficient progress and that we are going to begin the phase two negotiations with the EU 27.
“We are not yet at that stage and it would have been premature to have that discussion.” Downing Street said Cabinet will discuss the Brexit “end state” before the end of the year.
But another Cabinet source said: “There are voices from both the Leave and Remain supporters in the Cabinet that would welcome the chance to discuss the end state before we move onto the next phase. There is frustration that that still hasn’t taken place.”
Mr Hammond was also asked by the committee whether settling the divorce bill depended on the UK and Brussels striking a trade agreement.
He replied: “Nothing is agreed until everything is agreed… but I find it inconceivable that we as a nation would be walking away from an obligation that we recognised as an obligation.
“That is just not a credible scenario. That’s not the kind of country we are and frankly it would not make us a credible partner for future international agreements.”
The Prime Minister’s spokesman said that negotiations had been taking place “in the context of building a future relationship” with Brussels but did not go as far as Mr Hammond, adding that “nothing is agreed until everything is agreed and that applies to any financial settlement”.
Mr Hammond’s comments appeared to contradict Liz Truss, the Chief Secretary to the Treasury, who told MPS on Nov 29 that “any settlement that we make is contingent on us securing a suitable outcome”.
A draft copy of the withdrawal agreement states that Britain would pay no upfront Brexit bill but would have to pay for “ongoing liabilities” over the decades as they arose, according to the Politico website.