Britain will ‘honour its debts’ under EU deal, says Chancellor
0 President of the European Council Donald Tusk and Sweden’s Prime Minister Stefan Lofven Britain will make proposals to the European Union on the so-called Brexit “divorce bill” in the next three and a half weeks, Chancellor Philip Hammond has indicated.
Mr Hammond said there was a “very high value” in having a close trade relationship with the European Union 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 early next month 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 14-15 December European Council summit in order to enter the second phase of trade negotiations.
“The Prime Minister is clear that we will meet our obligations to the European Union and, as you know, we want to make progress in the discussions at the December Council at the European Unionandtheeuropeanshave asked us for more clarity on what we mean by meeting our obligations,” Mr Hammond told BBC One’s The Andrew Marr Show.
“We will make our proposals to the European Union in time for the council. I am sure about that.” Mr Hammond promised Britain would honour its debts, but also “negotiate hard” on the financial settlement.
“It’s about what is properly due from the UK to the European Union 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 also underlined the urgent need to secure a post-brexit implementation period in the next few months, acknowledging it was a “wasting asset” that will have less value the later it is agreed.
Asked about suggestions 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 everybodythanitisnowbecause by that stage people will have started to make alternative supply arrangements.”