UK will not ‘slink off like a wounded animal’ but will fight for a better EU deal, says Chancellor as he prepares first post-Brexit Budget Britain will not “slink off like a wounded animal” after leaving the European Union, Philip Hammond has said, as he vowed to build a £60billion Brexit war-chest in case the EU gives the UK a bad deal. The Chancellor said he would take a cautious approach to spending in Wednesday’s Budget to ensure UK has “got enough in the tank” to get out of EU. There have been calls for more tax cuts and greater spending after an expected downturn after Britons voted to leave the EU in June failed to materialise, with the UK set to grow by 2 per cent this year. – Daily Telegraph > Watch Philip Hammond tell Andrew Marr yesterday: Britain will ‘fight back’ if EU offers bad deal Ending free movement from EU is no ‘quick fix’ for low wages, says Lords committee Ending free movement from Europe post-Brexit may not deliver a meaningful cut in net migration or provide a “quick fix” for low wages, a House of Lords report has warned. Ministers are examining the options to introduce controls on EU immigration. The home secretary, Amber Rudd, has said she will consult businesses over the summer on an immigration bill to contribute to the government’s objective of reducing net migration to below 100,000 a year. The peers also warn that any immigration policy designed to choke off the supply of EU nationals to fill low-skilled jobs in Britain must be phased in because crucial sectors of the UK economy depend on them and it is unlikely that resident British workers will fill the gaps. – The Guardian UK manufacturers enjoying post-Brexit surge in orders Britain’s factories are growing at their fastest pace in more than three years, helped by the fall in the value of the pound after the Brexit vote and a recovery in core markets in Europe, a survey showed on Monday. The survey, by manufacturing lobby group EEF and consultancy BDO, added to signs that British factories are enjoying a growth spurt, something that Brexit supporters said would be one of the early benefits of leaving the European Union. – Reuters Ministers aim to build ‘empire 2.0’ with African Commonwealth after Brexit Britain will seek to boost trade links with African Commonwealth nations this week in a move described by Whitehall officials as “empire 2.0”. Liam Fox, the international trade secretary, will promise to build better links with the 52-member organisation when ministers from each country meet in London on Thursday and Friday. Britain plans to promise all developing nations that their trading relationships with the UK will stay the same or improve after Brexit, guaranteeing that they will not get worse. Ministers want to go further with African nations, however, and start talks to allow Britain to work more closely with an African free trade zone. – The Times (£) Airport chief: In post-Brexit Britain, Heathrow must expand A winter tan is almost a requirement of the job for the chief executive of Heathrow, and John Holland-Kaye displays just the healthy glow one would expect from the man running the UK’s biggest airport. This means it is hard not to envy his job at a meeting on a rainy afternoon in a pokey side room at the Queen Elizabeth II conference centre in the shadow of the Palace of Westminster. The soggy location is a sign of Holland-Kaye’s most pressing current task. He must lobby politicians and businesses to continue Heathrow airport’s momentum towards a third runway. – Daily Telegraph Ruth Davidson says Nicola Sturgeon faces a ‘massive’ voter backlash if she demands indyref2… Ruth Davidson has warned Nicola Sturgeon that her public support would take a “massive hit” if she presses ahead with demands for a second independence referendum in the face of opposition from the majority of Scots. The Scottish Tory leader said the First Minister would pay a “heavy price” at the ballot box and repeated her claim to the Telegraph last week that the Unionist campaign would have “every opportunity” to win a rerun of the 2014 vote by an even larger margin. Citing Ms Sturgeon’s decision to order her civil servants to draw up legislation for a second referendum only hours after the Brexit result was announced, she accused the First Minister of an “absolutely cynical” pursuit of independence. – Daily Telegraph …as Scottish Parliament committee claims Brexit threatens Scottish ‘economy and future prosperity’ Scotland should be given special treatment during the Brexit negotiations, according to the Scottish Parliament’s European Committee… The group has published a report that blasts the UK’s decision to leave the EU and demands a “bespoke deal” for Britain’s northernmost nation. The report, titled Determining Scotland’s Future Relationship With The European Union, said: “The UK Government’s decision to leave not only the EU but also the European Economic Area (EEA), thereby relinquishing membership of the single market, will have profound consequences for Scotland’s economy and future prosperity. The single market is the most successful example of a multilateral free trade area in the world. “The UK has decided to abandon the advantages it currently enjoys as a member of the EU and EEA, not only through the single market but also through the trade agreements that the EU has with 55 countries – Daily Express UK will have to give up all EU perks after Brexit, François Hollande warns The French president, François Hollande, has warned that Britain cannot hang on to the advantages of EU membership after it leaves, saying his message to Britain is: “That’s not possible; the UK will become an outsider to the European Union.” In an interview with the Guardian and five other European newspapers as he prepares to host a summit in Versailles to discuss the future of the European Union after Britain’s departure, Hollande said he regretted Britain’s decision to leave but stressed France’s long-held position that the UK could not exit the EU while holding on to any of the perks of membership. The UK, which is expected to trigger the article 50 process to leave the EU within weeks, has been optimistic about finding trade agreements with the EU and an advantageous compromise on financial services. – The Guardian Tory MP Bob Neill could vote against Government without ‘meaningful’ Brexit vote A Tory former minister has warned he is prepared to vote against the Government unless Prime Minister Theresa May gives Parliament a proper say on any Brexit deal. As the Lords threatens to impose an amendment on the Brexit Bill specifying Westminster must have a “meaningful” vote on a withdrawal agreement, Bob Neill signalled he could support such a move if it came back to the Commons. Asked on BBC Radio Four’s Westminster Hour if he would back such an amendment, he said: “I’d certainly be inclined to vote in that way unless the Government is able to come up with alternative assurances on the floor of the Commons which has the effect of saying, ‘it needn’t be on the face of the Bill but this is what will happen’.” – BT Post-Brexit special treatment for select industries will fail, warns IoD boss The new head of the Institute of Directors (IoD) has warned the Government that policies giving special treatment to industries such as car manufacturing as part of its Brexit negotiations are doomed to fail. Stephen Martin, who became director general of the IoD in February, said Theresa May’s administration must instead work for an “across the board” deal. “It’s difficult to do a ‘pick winners’ strategy, the Government isn’t renowned for success in that, and you get bad outcomes from what we’ve seen in the past when there’s interference,” he said when asked about special Brexit assurances given to carmaker Nissan. – Daily Telegraph International students ‘are worth £26bn’ International students generate £25.8 billion a year for the economy, according to an analysis by universities that is designed to oppose plans by the Home Office to restrict their numbers. The estimate, by the consultancy Oxford Economics for Universities UK, dwarfs the previous figure used by vice-chancellors to show that international students spend nearly £11 billion a year to study here. It includes the impact of visits by friends and family and of 206,600 jobs that depend on their spending. The Home Office has delayed plans for a consultation on restricting student visas and officials are said to be struggling to find ways to limit the recruiting of international students by some universities. – The Times (£) Farmers in developing countries ‘could face £1bn import tax hike after Brexit’ Farmers in some of the world’s poorest countries could be hit by at least £1 billion in extra taxes for importing goods to the UK when it leaves the European Union, campaigners have warned. Brexit could “make or break” the livelihoods of already-poor farmers depending on what action the Government takes on trade with 116 developing countries, the Fairtrade Foundation and Traidcraft said. Without measures to replicate current EU rules – which exempt products such as bananas, sugar and coffee imported from developing countries from charges or taxes – the incomes of millions of farmers could be hit. But there is also an opportunity to deliver fairer trade deals between the UK and those countries to help them work their way out of poverty, a report from the organisations at the start of Fairtrade Fortnight said. – Belfast Telegraph Negative coverage of EU in UK newspapers nearly doubled in 40 years, study finds Negative coverage of the European Union in British newspapers nearly doubled over the last 40 years, a study has found. Researchers from Queen Mary University of London (QMUL) found negative coverage of the EU increased from 24 per cent to 45 per cent between 1974 and 2013, at the “expense of positive and neutral coverage”. Positive coverage fell from 25 per cent to 10 per cent over the same period. The study, published in the Journal of Common Market Studies, analysed 16,400 newspaper articles during five periods from 1974 to 2013 during which the EU was highly prominent in UK news. – The Independent Juncker will fight for ‘more Europe’ in post-Brexit EU European Commission President Jean-Claude Juncker will support “more Europe” for all members instead of a two-speed model that would split the block, a senior Commission official has said, refuting previous allegations. Juncker’s post-Brexit vision for the EU could find unexpected allies in London. Britain’s former Prime Minister, David Cameron, said in November 2015 that “it is in all our interests for the eurozone to have the right governance and structures to secure a successful currency for the long-term”. His successor, Theresa May, also wants a stable and “successful” Europe, since the remaining 27 EU members are likely to remain Britain’s top trading partner. In a white paper published last Wednesday (1 March), Juncker outlined five options to overcome the existing challenges Europe faces following its divorce with the UK. – EurActiv Baroness Evans of Bowes Park: The House of Lords must back down over Brexit The House of Lords exists to thoroughly scrutinise legislation and hold the government to account but, as my opposite number, Labour’s shadow leader of the Lords Baroness, Smith of Basildon, recently said during debate on the EU withdrawal bill, “it is the House of Commons that will, as always and quite rightly, have the final say”. The European Union (Notification of Withdrawal) Bill passed the elected House of Commons unamended — and by large majorities — only a few short weeks ago. The past two weeks have seen some of the most interesting and impassioned debate in the House of Lords that I have witnessed as a member of the upper house. Our debate on the bill last Wednesday saw one of the largest turnouts in the house for nearly 20 years. This underlines both the importance of this bill and the seriousness with which members of the Lords take their role of scrutinising legislation and holding the government to account. – Leader of the House of Lords Baroness Evans of Bowes Park for The Times (£) Douglas Carswell MP: Leaving the EU is the start of a liberal insurgency What is Nigel Farage so cross about? We won the EU referendum, for goodness sake. Since 23 June, I’ve been walking on sunshine. My mood has been a state of Zen-like bliss. Alongside Boris Johnson, David Owen, Gisela Stuart and all of those involved in the official Vote Leave campaign, I spent the referendum arguing that leaving the EU would be an opportunity to make Britain more open, outward-looking and globally competitive. It is becoming increasingly clear to me that this is where Brexit is going to take us. Far from heralding a retreat into insularity, Brexit is shaping up to be the beginning of a liberal revolution. Having taken back control of our country, we will at last be able to tackle some of the public policy failures that have festered under successive governments for more than a generation. – Douglas Carswell MP for The Guardian Juliet Samuel: The EU may be doomed but not in the way the Brexiteers think It’s received wisdom for most Brexiteers: the European Union is doomed. Threatened by a growing swell of popular anger, the whole rotten project can’t last, and all its bureaucrats can do is rearrange the deckchairs. A British analysis of the situation usually stops there. But let’s, instead, go further. The hyper-federalist model of the EU might be doomed, but something better might yet replace it. For the moment, the EU’s prospects appear to be looking up. Last week, Brussels’ top bureaucrat, Jean-Claude Juncker, adopted a truly novel approach to policymaking – Juliet Samuel for the Daily Telegraph John Longworth: The real Brexit dividend will be fresh support for Britain’s enterprise economy Imagine the UK became the best place in which to do busines in the developed world. A truly enterprise economy, generating wealth and taxes, what could top that? Certainly not membership of the EU. Suddenly it has become an imperative to turn that into reality and to stop relying on the EU, a “crutch” reached for by a failed political class, some of whom continue to carp from the sidelines, otherwise known as the House of Lords. Free Trade Arrangements (FTA), are all the rage in the Brexit debate. The negotiation of a FTA with EU would provide some benefit – the sum total of tariffs which the EU could apply to British manufactured goods amount to less than half the UK net annual contribution – and could be said to be the optimal outcome provided we do not give anything away of significance to achieve this. – John Longworth for City A.M. Robin Walker MP: Let’s keep the Brexit Bill simple – and not mess with the mandate the people have given us The Article 50 Bill will be much debated once again this week and, after many hours of lively debate in the Lords, it will then returnmo the Commons. It is vital both to the interests of the UK as a whole and to the dynamics of the upcoming negotiations that it should progress swiftly and without amendment. The Bill does not set the terms of our EU exit; it is not about whether we leave – that decision was taken by the British people on June 23rd last year – it is simply the permission from Parliament, in line with the judgement of the Supreme Court, for negotiations to begin. For all those of us who want to achieve a strong and positive partnership with the EU after the UK’s exit, it will be important to begin negotiations on the right foot. A swift move to secure the rights of both EU nationals living in the UK and UK nationals living in the EU at the start of negotiations will be a powerful message of solidarity, demonstrating that we value the contribution of those who have chosen to make their futures here, and understand our moral and legal obligation to look after UK citizens wherever they live. It is also profoundly in the economic interests of the vast number of businesses in the UK who employ people from around the globe. Britain’s position as a global trading nation, as well as our relations with important markets to which we want to secure access, will be protected by such an approach. – Brexit Minister Robin Walker MP for ConservativeHome Christian May: Ever the pragmatist, chancellor Philip Hammond is right to be bullish on Brexit Philip Hammond isn’t known as Westminster’s most exciting MP. He lacks the bombast of a Boris Johnson or the polished ambition of a George Osborne. And yet, he has emerged as one of the most respected figures of the post-referendum government, with many City figures viewing him as “the grownup in the room”. Having backed the Remain campaign, he is more a ruthless pragmatist than a starry-eyed Brexiteer. Leaving the EU may not have been the outcome he sought, but now that we’re on that path he’s not prepared to simply limp down it, looking back with regret. At the start of the year, he warned that the UK is ready to greet a bad Brexit deal with aggressive tax competition – pledging that the government would do “whatever we had to do” to gain an advantage in the global economy. – Christian May for City A.M. Dominic Raab MP: Why Labour and the LibDems in the Lords are wrong about EU nationals Mark Twain remarked that “the secret of getting ahead is getting started”. I appreciate some of the House of Lords’ concerns about Brexit. But the best way to mitigate them is for Parliament to back the Government – not hold it back – so we can get on and deliver the best deal for Britain, and Europe. Take the position of European nationals living in Britain. We all want to see this resolved – along with assurances for British expats abroad. Theresa May has said this is an early priority, and our EU partners say we can’t resolve the issue until we start formal negotiations. In a report released today, the cross-party Commons Committee on Exiting the EU (of which I am a member), points out that there is no question of the Government deporting large numbers of EU nationals already here. Frankly, those pro-EU politicians and pundits suggesting otherwise have been engaged in some pretty irresponsible scaremongering. – Dominic Raab MP for ConservativeHome Daily Express: Britain will stand strong in talks with the EU elite The Leavers have a firm grasp on reality, knowing that Britain is in the driving seat for negotiating the best possible deal with the EU. However the Remainers are in cloud cuckoo land, still believing their own Project Fear propaganda and limply offering to wave a white flag so the EU can trample all over us. The difference could not have been more clear on TV yesterday. Chancellor Philip Hammond made it crystal clear that Britain will not “slink off like a wounded animal” if it does not get the Brexit deal it wants. “British people have a great fighting spirit and we will fight back,” he declared. That’s a message the country wants to hear! In another TV studio yesterday there was a message they definitely don’t want to hear: this time from Labour’s Hilary Benn, chairman of the Commons Brexit select committee. – Daily Express Brexit comment in brief The Northern Ireland assembly election result is a warning to Brexit Britain – The Guardian editorial “A £60 billion Brexit fund”? – John Redwood for John Redwood’s Diary London financial jewel brightens even as Brexit reckoning looms – Bloomberg Brexit news in brief Dutch voters increasingly sceptical about EU membership ahead of general election – Daily Express Brexit negotiations and the possibility of ID cards – The Guardian