German finance minister sets out tough line on Brexit Germany’s finance minister has set out a tough line on Brexit talks on issues that range from tax breaks to exit costs, dashing British hopes that Berlin would soften the EU’s stance on the UK’s departure from the bloc… But Wolfgang Schäuble told the Financial Times that, even after Brexit, the UK would be bound by tax rules that would restrict it from granting incentives to keep investors in the country — and would also face EU budget bills for more than a decade. “Until the UK’s exit is complete, Britain will certainly have to fulfil its commitments,” he said. “Possibly there will be some commitments that last beyond the exit … even, in part, to 2030 … Also we cannot grant any generous rebates.” – FT (£) French PM says Britain can’t be allowed to keep EU advantages – Reuters Change Britain sets out how much it would cost the UK to stay in the EU’s single market Britain faces paying nearly an extra £850 million into European Union coffers if it remains part of the single market, campaigners have claimed. Brussels has “secretly” raised spending limits by £1 billion on the long-term budget that had been curbed after demands by former prime minister David Cameron in 2013, according to Change Britain. It also claimed European Commission documents suggest payment ceilings in the financial plan, which runs to 2020, will be breached in its final two years. – BT Britain will be fined £850 million if it remains full member of EU single market – Daily Express Civil service not prepared for handling Brexit says former Cabinet Secretary Gus O’Donnell Gus O’Donnell warned that the Government will have to stage a massive recruitment drive to cope with the “extra requirements” imposed by Brexit. The former Cabinet Secretary also warned that the Government’s other priorities risk being “crowded out” as ministers focus their attention on the process of quitting the EU…. Asked whether the civil service was prepared for Brexit, Mr O’Donnell – who served under Tony Blair and David Cameron – said: “There’s a very simple, short answer to that which is no. Brexit imposes a lot of extra requirements on the civil service. They’re not perfectly ready. “- Politics Home Lord O’Donnell House magazine interview in full – PoliticsHome Article 50 author Lord Kerr suggests Britain will get a ‘hard, unpleasant Brexit’ Lord Kerr of Kinlochard, a former chief British diplomat who authored Article 50, says the UK is heading for a “hard Brexit” because the debates surrounding Britain’s EU membership are based on emotion rather than evidence… “Whitehall is charged with delivering a policy (Brexit) it doesn’t actually believe in — and the evidence suggests it is right not to believe in. I can’t think of an example like Brexit where the government was working to a single aim that so few people in government actually believe in.” – Business Insider Europhile peer behind Article 50 sparks fury after he says we need more migrants because we’re not intelligent enough – Daily Mail Article 50 will be triggered without a parliamentary fuss – but wait until the Great Repeal Bill is tabled The PM’s problems will come when the “Great Repeal Bill” — which will scrap the 1972 European Communities Act which took Britain into the EU, while simultaneously transferring all EU law onto the domestic statute book — is put on the floor of the Commons later next year. Any MP, or member of the House of Lords, can make amendments to bills as they travel through parliament. Each must be backed by both houses — so one simple amendment can cause chaos if a government can’t get majority backing among MPs or Lords. If those proposing an amendment can build momentum around their cause, the government could be in trouble. – Tom McTague for Politico Government ditches plans to curb Lords as it prepares for Brexit bill Ministers have dropped plans to curb the power of the House of Lords, amid concerns it could cause tensions between the government and peers before crucial Brexit legislation has to pass through parliament. The leader of the House of Lords, Natalie Evans, announced that the government would not proceed with changes proposed by the Strathclyde review, which would have banned peers from blocking secondary legislation. – The Guardian House of Lords warned ‘Behave over Brexit, or see your power restricted’ – City A.M. Don’t block Brexit, minister warns the Lords: Downing Street says peers will have powers curtailed if they try to delay leaving the EU – Daily Mail Brexit and the Lords: power to examine – The Guardian view MPs can see off hard Brexit. The ball is in their court – Martin Kettle for The Guardian London’s still the number one city in Europe for digital startups According to innovation foundation Nesta and the European Digital Forum’s European Digital City Index, the capital is still the best city in Europe for startups, thanks to its access to capital, buzzing entrepreneurial culture and access to a skilled workforce. It stayed ahead of Stockholm in second spot, Amsterdam in third and Helsinki in fourth, with Paris rounding out the top five. London came top for both startups and scale-ups measuring 10 core themes, including mentoring and business environment. The ranking of 60 European cities featured nine in the UK, with six in the top 20. Cambridge came in at 12th thanks to its access to mentoring, while Bristol was 13th, Oxford 15th and Manchester 16th. – City A.M. Brexit unlikely to mean loss of City’s role in processing deals in euros One of the City’s most prized businesses – the way that financial products priced in euros are processed – will not be lost to the remaining members of the European Union as a result of Brexit, according to the ratings agency Standard & Poor’s. The costs associated with moving the clearing of complex financial instruments to another financial centre means London is likely to remain the home of the £460tn-a-year business, S&P said. – The Guardian Brexit wish list created by London Assembly to protect capital’s financial sector – The Wharf Autumn shoppers provide best retail sales figures in 14 years Shoppers delivered the strongest growth in retail sales in 14 years last month with households shrugging off Brexit-related gloom. Sales were up 7.4 per cent on October last year, well above forecasts of 5.3 per cent, making it the best month since April 2002. Consumers have now delivered 42 consecutive months of year-on-year growth, providing the backbone for the economic recovery. – The Times (£) Brexit Britain can’t stop spending – Allister Heath for the Daily Telegraph (£) Energy suppliers latest to exploit EU referendum to hike prices Industry sources claim Britons are about to be hit by a “tsunami of price rises” this winter….Experts believe the big six suppliers – British Gas, SSE, EDF Energy, nPower, E.On and Scottish Power – are poised to unleash a round of price rises within weeks. Marc Gander, director of Consumer Action Group, said: “Brexit seems to be being used as a scapegoat and bearing in mind the recent report revealing the firms are making much more than they let on, people should be very concerned. It also seems extraordinary that this is happening just before winter.” – Daily Express Pro-EU panellist blasts Brexit on BBC Question Time and then admits she didn’t vote Cat Boyd, who co-founded the Radical Independence Campaign and Scottish Left Project, heavily criticised Britain’s decision to quit the European Union this year but was quickly ridiculed following the revelation. [She said] “This referendum was thrusted upon the general public because of a split in the Tory party. Politicians who drove round in that Vote Leave bus are liars.” But when BBC presenter David Dimbleby asked the trade unionist how she voted, she revealed: “I didn’t actually vote. I abstained.” – Daily Express Revealed: the Institute for Government’s Europhile links This week the Institute for Government released a report branding Theresa May’s Brexit plans as ‘chaotic and dysfunctional’… With a board comprised of the likes of Neil Kinnock’s former Chief of Staff at the European Commission, Sir Andrew Cahn, and a range of Labour MPs and peers, it can’t be considered the most neutral outlet. – Steerpike for The Spectator’s Coffee House blog Britain’s contribution to the EU aid budget soars by £200million in just one year The amount of money Britain pours into the EU aid budget soared by almost £200million in just one year. In 2015 alone, the UK sent more than £1.3billion to Brussels to be spent on development projects across the world. That is an increase of 16 per cent on the year before, according to statistics released by the Department for International Development. – Daily Mail Aarti Shankar: How might the election of a centre-right French president affect Brexit negotiations? From France’s standpoint, Brexit concessions are unlikely to be a priority in the midst of upcoming presidential elections, continued migration concerns and a possible extension of the state of emergency, which was introduced last year following successive terrorist attacks. Indeed, adopting a harder line in the upcoming Brexit negotiations may even be viewed as part of the solution to some of these domestic concerns. – Aarti Shankar for Open Europe Fraser Nelson: Theresa May’s Brexit strategy is to become the Killer Queen is working brilliantly There is a political need to deny Mrs May what she wants, to show that Britain is being made to suffer – while somehow preserving our tariff-free market for Volkswagens and Prosecco. It will be an unrelenting game of diplomatic poker. The same game that Mr Cameron – with his bonhomie, decency and transparency – comprehensively lost. – Fraser Nelson for the Daily Telegraph (£) Daily Express: Delivering Brexit means quitting single market Because the Eurocrats have decided to hike their spending plans if the Brexit arrangements mean Britain remaining part of this EU-lite organisation, it will cost us an extra £850million between now and 2020. Most Remoaners accept that we will be leaving the EU – their great hope now is to ensure we remain a member of the single market. But this would not win back border controls, the right to make our own laws or the opportunity to strike new trade deals. – Daily Express Comment Brexit comment in brief Brexit and the Gordian knot of the UK productivity puzzle – Michael Ellington and Costas Milas for the LSE blog Theresa May should give Nigel Farage a peerage, and he should accept it – Mary Dejevsky for The Independent What we can learn about Brexit from the English civil war – Graham Henderson for Reaction Let’s leverage Britain’s heritage as a great trading nation to lead the world in free trade again – Simon Walker for City A.M. The eurozone will be just fine – Miguel Otero-Iglesias for Politico Tim Shipman interviewed about his compelling account of the battle for Brexit – Interview by Andrew Gimson on ConservativeHome Brexit news in brief Theresa May lashes out at SNP’s Brexit hypocrisy – The Scotsman Clive Lewis confirms Labour will raise corporation tax as part of Brexit business deal – International Business Times Deloitte proud of ‘UK heritage’ and will continue to invest in the country, says global chairman – International Business Times Research ‘needs strong voice’ in Brexit negotiations, say MPs – Times Higher Education Weak pound could boost English wine, says Majestic boss – The Guardian Opposition to EU membership on the rise in Iceland – Iceland Monitor Creative Industries Council campaign stresses unique value of UK’s creative industries since Brexit – The Drum Ukip in trouble for overspending on Brexit campaign – Metro How would ‘associate EU citizenship’ work? – BBC Royal Mail says Brexit uncertainty causing dip in junk mail sent by post – The Guardian And finally… Fictitious MEP Elwyn Davies more recognisable than most real Welsh MEPs More people thought a made-up politician called Elwyn Davies was a MEP than three real ones, a survey has found. The fictitious Elwyn Davies was second only to Ukip MEP Nathan Gill in name recognition, ahead of Jill Evans, Derek Vaughan and Kay Swinburne.- South Wales Evening Post