Hammond: We’d be mad not to stay as close to EU as possible

PHILIP hammond set himself on a collision course with Theresa May yesterday by declaring it would be ‘madness’ not to seek the ‘closest possible’ links with the EU.

The Chancellor welcomed a controversial call from business leaders for a delay in leaving the bloc’s customs union and the single market.

CBI director general Carolyn Fairbairn had urged Britain to remain in the two trading arrangements until a final Brexit deal is struck.

Yesterday the Prime Minister rejected her demands, saying it would prevent the UK from negotiating its own trade deals – but Mr hammond struck a softer tone.

he told Bloomberg that most Remain supporters want a ‘Brexit that looks sensible to them ... that recovers sovereignty for the UK but also recognizes that reality that we live in a very interconnected world, and that the EU will remain our largest trading partner and our nearest neighbours, and that it would be madness not to seek to have the closest possible arrangement with them going forward’.

Of the CBI, Mr hammond said: ‘i’m glad

‘Shock to business is minimised’

that the business community is exercising a voice in this discussion. i think that’s helpful.’

he said he wanted to negotiate a ‘transitional structure ... so that the shock to business is minimised for the transition period’.

‘if we lose access to our European markets, that will be an instant effect, overnight, and [people] won’t thank us if we deliver them an instant hit with only a longer term, slowly building benefit to compensate,’ he added.

The comments came as the Shadow Brexit Secretary, Sir Keir Starmer, said labour would work with the Greens and the SNP to water down Brexit.

he said it was ‘highly likely’ that the Opposition would seek to amend the Repeal Bill to convert EU legislation into British law.

Brexit can be a global force for good, the Chinese president told the Prime Minister at the G20 summit.

A British diplomatic source said President Xi told Mrs May he thought the Brexit talks had ‘got off to a positive start’ during talks at the G20 summit in hamburg.

he added: ‘The president said Brexit is a very big event for the world, but he believed that a prosperous, stable and open UK and a prosperous, stable and open EU would be positive for the world and that China would further work to promote its interests in Britain and the EU.’