No-Deal Brexit is off the table Hammond tells business chiefs

PHILIP Hammond told business leaders the ‘threat’ of a No-Deal Brexit could be taken ‘off the table’, it emerged last night.

In a marked break from official policy, the Chancellor told executives Article 50 could potentially be ‘rescinded’, a leaked recording revealed.

His comments came in a conference call on Tuesday night following the overwhelming defeat of Theresa May’s withdrawal deal in a Commons vote.

The Prime Minister has left open the prospect of leaving with No Deal – a position which is backed by Brexiteers. But Mr Hammond said there was a majority in Parliament against leaving the EU without a deal.

‘We have to reach out to MPs in the Commons first,’ he said. ‘There is a large majority in the Commons that is opposed to No Deal.’

Last night a source close to Mr Hammond said: ‘He is comprehensively opposed to No Deal. It’s bad for the economy, it’s bad for business, it’s bad for jobs.’

In the call, Mr Hammond also set out how a backbench Bill, proposed by former minister Nick Boles, could in effect be used to stop any prospect of No Deal. He even suggested ministers would not put any ‘obstacles’ in the way of the plan.

Speaking to the heads of Siemens, Amazon, Scottish Power, Tesco and BP, who all warned against No Deal, he indicated the Government could be open to talks on the customs union. Business Secretary Greg Clark, who was also on the call, argued: ‘We can’t have No Deal.’

The call was held at 9.30pm on Tuesday, less than two hours after the vote. It also featured Brexit Secretary Stephen Barclay, who said No Deal could not be taken off the table.

Mr Hammond said: ‘ Could we extend the Article 50 deadline to give us more time? The simple answer is that the EU would not consider the request for the extension... unless or until we have a clear plan to go forward. The sequence has to be first to reach out to opinion across the Commons, to establish the terms on which we can build a majority for a way forward.

‘If necessary [we] go back to the EU to agree changes that are necessary to deliver that consensus. And at that time, if more time is going to be required, to negotiate that with the EU.’

During the conference call, Mr Hammond added: ‘I can simply as a parliamentarian say it is clear to me there is a large majority in the Commons that is opposed to No Deal in any circumstances.’