‘UK on track to make the deadline for divorce bill’

Brexit: Hammond‘sureofprogress’

Britain will make proposals to the EU on the so-called Brexit “divorce bill” in the next three-and-a-half weeks, Chancellor Philip Hammond has indicated.

He said there is a “very high value” in having a close trade relationship with the EU after Brexit, as the UK faces demands to spell out its offer to Brussels on the financial settlement.

European Council president Donald Tusk has set a deadline of the start of December for Britain to make further movement on the divorce bill and Irish border in order to unlock trade talks.

The chancellor said he was sure the government would make its offer in time for the December 14-15 European Council summit to try to persuade EU leaders to declare “sufficient progress” has been made for trade negotiations to begin. Mr Hammond prom- ised Britain would honour its debts but also “negotiate hard” on the various aspects of the financial settlement.

“It’s not about demands, it’s about what is properly due from the UK to the EU under international law in accordance with the European treaties,” he said.

“And we have always been clear it won’t be easy to work out that number, but whatever is due we will pay, we are a nation that honours our debts.

“And of course we will negotiate hard whether there is any question, any doubt about whether an item is payable or not.”

Mr Hammond underlined the urgent need to secure a post-Brexit implementation period in the next few months, acknowledging it is a “wasting asset” that will have less value the later it is agreed.

Asked about suggestions that the EU may not agree an implementation period until next October, the chancellor said: “It will still be useful but it will be much less useful for everybody than it is now because by that stage people will have started to make alternative supply arrangements, British companies that are importing components from the European Union may have had to break those arrangements and start sourcing elsewhere.

“Government agencies will have had to start putting in place contingency arrangements for Brexit in March 2019.”

Asked during a television interview to set out a positive economic benefit of Brexit, Mr Hammond said it would give Britain independence over the regulation of new technology.

“It’snotabout demands, it’s aboutwhatis properlydue”