Time running out to secure Brexit deal, Hammond tells MPs

BRITAIN is “working against the clock” to secure a Brexit deal, Philip Hammond said, as he sidestepped Labour demands to reject a no-deal scenario.

The Chancellor accepted “time is running out” but insisted officials and ministers will be “working flat out” over the coming weeks to achieve an agreement with the EU.

He also mocked his Labour counterpart John McDonnell after the shadow chancellor stumbled over Prime Minister Theresa May’s “no deal is better than a bad deal” mantra during Treasury questions.

Speaking in the Commons, Mr McDonnell said: “Let me put this to the Chancellor – can we both try and get the message across to the Prime Minister, who continues to insist that no deal is better than, no deal is better than, no, a bad deal, no deal, to insist that a bad deal is better than no deal.

“I’ll negotiate that again, Mr Speaker. She continues to insist a bad deal is better than no deal.

“Business organisations are clear – the CBI’s warning of a catastrophe, the National Farmers Union said it’d be an Armageddon scenario, and according to the TUC a no-deal Brexit would be devastating for working people.

“So can I appeal to the Chancellor, he knows the consequences of no deal. Will he now show some leadership and make it clear to his colleagues that he will not accept a no-deal scenario?”

To laughter, Mr Hammond replied: “First of all I’d love to actually know what it said on his bit of paper. Let me be very clear to you – I, the Prime Minister, all members of the Cabinet are committed to achieving a deal which protects British jobs, protects British businesses and British prosperity going forward.

“That is what we’re committed to.

“He’s absolutely right that time is running out.

“We’re working against the clock, we understand that, and we will be working flat out over the coming weeks and months to achieve that.”

Mr Hammond last month was criticised by Tory MPs for reiterating warnings over a no-deal Brexit having “large fiscal consequences”.

He pointed to disputed provisional analysis, released earlier this year, which claimed GDP could fall and borrowing could be around £80bn a year higher by 2033/34 under a scenario in which Britain resorted to World Trade Organisation (WTO) terms due to no agreement with the EU.