Tories at war
Johnson and Gove led ‘mendacious’ campaign, says friend of Cameron Minister claims markets chaos shows ‘Project Fear’ warnings are bearing out Theresa May emerges as favoured ‘stop Boris’ leadership candidate
THE Tory civil war over the EU referendum escalated last night after friends of David Cameron accused Boris Johnson and Michael Gove of leading a “mendacious” campaign and “corroding” trust in politics.
The Prime Minister’s allies last night claimed his “project fear” warnings that Brexit would bring economic disaster were proving to be a reality, as the bitter feuding from the referendum campaign reached new heights.
Mr Johnson is this week expected to declare as a candidate for the Conservative leadership and emphasise his values as a liberal Tory and his electoral success in two mayoral campaigns and the EU referendum.
He is likely to say that there needs to be a period of “calm” and “stability for the country” after the historic vote to leave the European Union and to warn against the risk of “talking down” the economy.
It was reported yesterday that one option may see Mr Johnson form a “dream team” with Mr Gove. Mr Gove is said to have called Mr Johnson yesterday to confirm his support.
Theresa May, the Home Secretary, has emerged as the favoured “stop Boris candidate” amid claims Mr Cameron’s allies are offering their support.
Mr Johnson’s supporters last night raised concerns that his rivals are plotting to change the rules for the Conservative leadership contest to guarantee that one of the two final candidates must be a woman. A friend of Mr Cameron said yesterday that he will not “interfere” with the Tory leadership campaign by backing a candidate and will act as an “honest broker”.
But the friend added: “A campaign that was characterised by mendaciousness is being credited as a masterstroke. There has been a corrosion of trust in British politics and financial institutions like the Bank of England.”
Last night, Anna Soubry, a pro-EU business minister, told Channel 4 News: “A lot of people suddenly realised that project fear is turning into project reality. We are doing everything we can as a Government but the reality is starting to dawn.
:“My anger with Boris is that I don’t honestly believe he believed what he was saying to people. I think he didn’t think they would win but for his own interests he went for Leave.”
She added: “Now they are seeing the consequences.”
Moody’s, the ratings agency, has cut Britain’s outlook to “negative” and said that the referendum result will trigger “a prolonged period of uncertainty”.
A government source said the move is “obviously very serious” and could increase the cost of Government borrowing. Last night, George Soros, the billionaire widely known as the man who “broke” the Bank of England during Black Wednesday, said the break up of the EU appeared inevitable.
“Now the catastrophic scenario that many feared has materialised, making the disintegration of the EU practically irreversible,” said Mr Soros. A senior source close to Mr Cameron and Mr Osborne said: “It is painfully obvious that Boris and Gove have no plan, no idea what they are doing, and never expected to win.”
However, Eurosceptics said the fears of an economic shock were exaggerated. They pointed out that the pound rallied on Friday after falling to a 30year low and markets recovered. It came as: Friends of Mr Johnson said he is unlikely to call a snap election if he wins the Conservative leadership contest.
George Osborne, the Chancellor, is facing calls from Eurosceptic ministers to stand down over his “scorched earth” approach during the campaign.
Stephen Crabb, the Work and Pensions Secretary, set out his stall as a potential leadership candidate. He argues in The Sunday Telegraph that the Conservatives must “speak for” the working classes who felt “despair” over immigration.
Nigel Farage, the Ukip leader, says in an interview with The Sunday Telegraph that “regardless of Brexit” the economy risks falling into a recession because economic growth is slowing.
David Lammy, a Labour MP, urged Parliament to “stop the madness” by voting against a Brexit in Parliament – the referendum result is technically only advisory.
The Prime Minister will tomorrow hold a Cabinet meeting in which he will be pushed by Eurosceptic ministers to appoint a team to begin preparations for a Brexit. The 1922 Committee of MPs, which will oversee the Conservative leadership election, will meet at midday to outline the timetable and terms for the contest.
This week, Mr Cameron will attend an EU summit in Brussels amid warnings that he will be locked out of discussions by other European leaders.
Britain’s most senior official in Brussels yesterday resigned from his position despite warnings that his departure could mean City firms will face tougher European regulation.
Lord Hill said he was “disappointed” with the outcome of the campaign.
François Villeroy de Galhau, a member of the European Central Bank’s governing council, yesterday claimed the City will lose access to the single market unless it accepts the free movement of EU migrants. Last week, Jean-Claude Juncker, the head of the European Commission, warned that the “divorce” of Britain from the EU would not be “amicable”.
However, Angela Merkel, the German Chancellor, insisted that the EU does not have to be “nasty” to Britain and said that there is no rush to begin the formal process of leaving.
Sir Alan Duncan, a former Tory minister and a Remain supporter, said people should not assume Mr Johnson will be favourite to replace Mr Cameron. “Do not assume he is the darling of Conservative Party activists,” he said. “A lot of them don’t necessarily want a permanent ride on the Big Dipper.”
‘Do not assume Boris is the darling of Conservative Party activists’