19 June 2019 | UK NEWS
The Chancellor, Philip Hammond, is to use a major speech tomorrow in the City of London to warn that public finances could be severely impacted in the event of a No Deal Brexit. He will also say that he believes such a scenario could have adverse consequences for the union of the United Kingdom and damage Britain’s prosperity.
Mr Hammond will state that the £26.6 billion “fiscal headroom” earmarked for a No Deal scenario is likely to be soaked up quickly. He will say: “I cannot imagine a Conservative and Unionist-led Government, actively pursuing a no deal Brexit; willing to risk the union and our economic prosperity”, and is expected to add that any such developments would be likely to increase the risk of an early General Election, which could “put Jeremy Corbyn in Downing Street”.
In the speech, which will take place at Mansion House, the Chancellor will also say that he will “fight, and fight again, to remake the case for pragmatism and, yes, for compromise in our politics – to ensure an outcome that protects the union and the prosperity of the United Kingdom”. He will challenge the current Conservative leadership contenders to set out their “Plan B” for if their preferred approach to delivering Brexit fails, and is likely to hint that another referendum may be needed to resolve the current impasse.
Mr Hammond is expected to stress that a No Deal Brexit cannot pass through Parliament, and that the current Withdrawal Agreement and Political Declaration have already been decisively rejected. He will add: “It may be that I’m wrong, and a new leader will persuade Parliament to accept the deal it has already rejected, or that the European Union does a 180-degree U-turn and re-opens the Withdrawal Agreement.” However, he will urge the candidates to set out their plans in the event that this does not transpire.
The Chancellor will urge the candidates to be “honest with the public” and say that “if your Plan A is undeliverable, not having a Plan B is like not having a plan at all”, and will say that “if the new prime minister cannot end the deadlock in Parliament, then he will have to explore other democratic mechanisms to break the impasse. Because if he fails, his job will be on the line – and so, too, will the jobs and prosperity of millions of our fellow citizens.”
