Britain to table EU ‘divorce’ offer soon
Hammond emphasises ‘high value’ in trade ties
BREXIT: Britain will make proposals to the European Union on the so-called Brexit “divorce bill” within the next month, Chancellor Philip Hammond has indicated, as the UK faces demands to spell out its offer.
BRITAIN WILL make proposals to the European Union on the socalled Brexit “divorce bill” within the next month, Chancellor Philip Hammond has indicated, as pressure mounts to move forward with key negotiations on future trade deals.
Mr Hammond said yesterday that there is a “very high value” in having a close trade relationship with the EU after Brexit, as the UK faces demands to spell out its offer to Brussels on the financial deal.
The European Council’s president Donald Tusk has set a deadline of the start of December 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 European Council summit on December 14 and 15 to try to persuade EU leaders to declare “sufficient progress” has been made for trade negotiations to begin.
“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 Union and the Europeans have asked us for more clarity on what we mean by meeting our obligations,” Mr Hammond said.
“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 various aspects of the financial settlement.
“It’s not about demands, 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 postBrexit implementation period in the next few months, acknowledging it is a “wasting asset” that will have less value the later it is agreed.
Asked about suggestions that 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 everybody than it is now because by that stage people will have started to make alternative supply arrangements, British companies that are importing components from the European Union may have had to break those arrangements and start sourcing elsewhere.
“Government agencies will have had to start putting in place contingency arrangements for Brexit in March 2019.”
He added: “It is a wasting asset and that’s why it’s in everybody’s interest that we get the implementation agreement as soon as possible.”
Asked to set out a positive economic benefit of Brexit, Mr Hammond said it would give Britain independence over the regulation of new technology. He said: “The way that the EU works is when new technologies come along, often it takes the European Union a little bit of time to get round to grabbing in Brussels the power to regulate them, so you often start off with national regulations, then it gets swept up into Brussels later on.
“Once we’re outside the EU of course we’ll be able to make national regulation for the longterm, trying to stimulate new technology sectors in this country. I’m very clear that our post-Brexit future has to be about embracing change so that we can create the high-pay, high-value jobs in this country that we need in the future.”
The Prime Minister is clear that we will meet our obligations. Chancellor Philip Hammond.
THERE WAS little to inspire in Chancellor Philip Hammond’s round of interviews yesterday ahead of Wednesday’s Budget.
His announcement of a house-building programme, though welcome for young people struggling to get a foot on the property ladder, had already been heavily trailed and apart from that, Mr Hammond did not have much of substance to say.
That is illustrative of the problems he faces both economically and politically.
The economic outlook is uncertain, as is the outcome of the Brexit negotiations with the EU.
Politically, Mr Hammond has some bitter rivals within his own party and was careful not to give them any ammunition to use against him.