Corbyn says full single market membership not "compatible" with his "radical plans to change Britain's economy": Brexit News for Saturday 10 March

Corbyn says full single market membership not
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Jeremy Corbyn says full single market membership would not be “compatible” with his “radical plans to change Britain’s economy”…

Jeremy Corbyn has argued that Labour must reject full single market membership if his hard-Left socialist vision is to become a reality as his supporters were accused of using underhand tactics to quash opposition. The Labour leader told the party’s Scottish conference that the UK’s post-Brexit relationship with the EU must be “fully compatible” with his radical agenda, including nationalising the railways and stopping employers “importing” cheap labour. He used his keynote speech to the Dundee gathering to argue that Labour could not accept a Norway-style deal for membership that would leave Britain “as a passive recipient of rules decided elsewhere by others”… The Labour leader said: “The European Union is set to make changes of its own in the coming period, especially in relation to the rules governing Eurozone economies and the rights of temporary migrant workers. It would therefore be wrong to sign up to a single market deal without agreement that our final relationship with the EU would be fully compatible with our radical plans to change Britain’s economy.” – Telegraph

  • Scottish Labour spells party founder Keir Hardie’s name wrong at conference – Telegraph

…as he rejects EU Brexit plan on state intervention

A Labour government would pursue a Brexit deal without single market rules and directives pushing privatization, Jeremy Corbyn said Friday. The Labour leader said he would not sign up to an agreement with Brussels that stifles Labour’s economic intervention plans, which include the re-nationalization of railways and the postal service. Under his plan for Brexit the U.K. would be protected from EU rules and directives that push privatization and public service competition, he said… Corbyn’s speech comes just two days after European Council President Donald Tusk put forward draft Brexit negotiating guidelines, which included a clause calling for “robust guarantees which ensure a level playing field” and would prevent the U.K. undercutting “current levels of protection with respect to competition and state aid, tax, social, environment and regulatory measures and practices.” – Politico

EU threatens to sue UK if it negotiates exemption from Trump tariffs

Britain faces huge fines in an EU legal battle that would poison the Brexit negotiations, if Liam Fox secures a UK-only exemption from Donald Trump’s trade tariffs on steel and aluminium imports. The British Trade Secretary, who on Thursday accused the EU of acting like a gang in Brexit talks, said he would use a trip to Washington next week to secure a British carve-out from the US President’s levy of 25pc tariffs on steel and 10pc on aluminium… Mr Fox’s comments that he would be looking to “maximise the UK’s case for exemption” drew a furious response on Friday from the European Commission, which warned Britain not to break ranks with the rest of the EU in the looming trade war. A senior EU official told The Telegraph that if Britain broke EU law, it would have to face the consequences. Commission legal action against EU countries can ultimately lead to the European Court of Justice, which can levy huge, daily fines until the offending nation submits to the ruling. – Telegraph (£)

  • May could seek UK tariff deal with Trump, risking EU backlash – Bloomberg
  • Excluding UK from steel tariffs would question ‘the whole EU’, EU Trade Commissioner Cecilia Malmström tells Trump – Politico
  • Trump’s economic nationalism could be his undoing – Harry Phibbs for ConservativeHome
  • Anti-Trump hysteria must not block UK-US trade deal – Peter Lyon of Get Britain Out for The Commentator
  • George W. Bush tried steel tariffs. It didn’t work – William Hauk for Reaction

Brexit deal not expected until early 2019, Whitehall sources say privately

U.K. officials don’t expect to clinch a Brexit deal until two months before exit day, increasing the chances of chaos for executives and lawmakers. European Union chief negotiator Michel Barnier has long said he wants the withdrawal agreement done by October so that there’s time for it to go to the European and U.K. parliaments for approval before Britain leaves in March 2019. Brexit Secretary David Davis has indicated in public that the timetable could slip a bit. But speaking privately, U.K. officials say the real deadline is January… A spokesperson for the Department for Exiting the European Union said it remains a “shared aim to get this deal agreed by October this year.” – Bloomberg

Arlene Foster condemns Tony Blair and John Major for using Troubles to attack Brexit

DUP chief Arlene Foster condemned Tony Blair and Sir John Major for inciting fear over the return of violence in Northern Ireland and dragging potential conflict into Brexit negotiations… The Northern Ireland politician said their warnings – over Brexit’s potentially damning the peace process – were an “insult” to voters in the region. Both former Prime Ministers have voiced concerns about the possibility of border controls being reinstated between the North and Irish Republic. Speaking at the British Chambers of Commerce annual conference in London, Mrs Foster said: “I object in the strongest possible terms to people who have limited experience of the Troubles in Northern Ireland throwing threats of violence around as some kind of bargaining chip in this negotiating process. To do so is an insult to the people of Northern Ireland who worked so hard to bring peace to our country.” – Express

  • Anger as Tony Blair wins Abraham Lincoln Leadership Prize for “unwavering commitment to the defining principles of democracy” – Express

> Lee Reynolds on BrexitCentral: Remainers are insulting Northern Ireland to caricature it as forever standing on the precipice of violence

UK manufacturing forges record run of growth…

The UK’s manufacturing sector registered its ninth consecutive month of growth during January, the longest period of expansion since records began in 1968, boosted by surging global economic growth and a drop in the pound… Manufacturing grew by 0.1 per cent in January compared to December, the ONS said. Overall industrial production, which includes the output from the UK’s north sea oil and gas fields as well as utilities such as water and gas, grew by 1.3 per cent. – FT (£)

…as Philip Hammond urged to kick-start Brexit and back tariff-free manufacturing hub the size of Heathrow in Teesside

Cabinet Ministers are lobbying the Chancellor to approve unprecedented plans for a 4,500 acre “freeport” on the banks of the River Tees near Redcar. Tory Teesside Mayor Ben Houchen met with Treasury Ministers earlier this week – and officially asked the Treasury to green light it for 2021. The freeport would sit outside of UK customs – allowing manufacturers to import materials and components from around the world and re-export them free of any tariff. Major car companies are already in talks about moving factories to the UK to take advantage of the plans – which could create thousands of jobs. Insiders claim the Chancellor is worried about publicly backing the idea – in case it upsets the EU Commission during Brexit negotiations. – The Sun

  • Hammond to get Spring boost with smallest deficit in a decade – Bloomberg

> Tees Valley Mayor Ben Houchen on BrexitCentral: The Tees Valley relishes the opportunities of Brexit – which is why we want a Free Port in Teesside

Government publishes ‘cast iron evidence’ of Brexit boost to devolution

The Government has published “cast iron evidence” Brexit legislation will result in new powers for the UK’s devolved administrations, as it battles to win approval for a key bill. In a provisional analysis of powers to return from Brussels after the UK quits the EU, the Government says “extensive new powers” will be handed to Belfast, Cardiff and Edinburgh. In a study of 153 areas where EU laws intersect with devolved powers, the Government insists the “vast majority” of powers returning from Brussels will go straight to devolved governments on the first day the UK leaves the EU. It also says none of the existing powers held by Belfast, Cardiff and Edinburgh will be affected in any way. – Sky News

  • UK Government publishes ‘cast iron’ evidence Brexit will deliver significant new powers to Scotland – Telegraph (£)
  • UK ministers want temporary control of devolved areas post-Brexit – BBC News
  • Scotland and Wales face battle for fish and farm policy – Guardian

Strike Brexit transition deal‎ urgently, bosses to tell Davis in CBI letter

A transition deal which gives the UK continued influence over European Union rules is essential, industry chiefs representing millions of British workers will tell the Brexit Secretary next week. Sky News has seen the draft of a letter to be sent in the coming days to David Davis which warns that the need for comprehensive transitional arrangements is urgent to prevent major companies activating Brexit contingency plans. The letter, which is being coordinated by the CBI, is being circulated among leading industry bodies covering sectors such as chemicals, aviation, food, pharmaceuticals and retail. – Sky News

  • UBS warns over transition deal as it threatens to shift UK operations – Telegraph

> BrexitCentral exclusive: Remain bosses targeting EU Withdrawal Bill with FT letter

Shanker Singham’s expert trade team moves from Legatum Institute to IEA

Shanker Singham has resigned from the Legatum Institute as Director of Economic Policy and is taking his three-strong team with him from Mayfair to Westminster to join the Institute of Economic Affairs (IEA)… The IEA is creating a new International Trade and Competition Unit for Shanker’s team, bringing with him lawyer Victoria Hewson; economist Catherine McBride; and research analyst Dr Radomir Tylecote. The three – who have a wealth of experience from the legal, technology, business and think tank worlds – will take up their roles later this month. Shanker’s team are widely recognised as the top Brexit wonks outside government. – Guido Fawkes

  • Legatum Institute parts ways with pro-Brexit trade expert – FT (£)

> READ: Shanker Singham’s posts on BrexitCentral

Marcus Fysh: Don’t be taken in by fifth columnists pushing Whitehall’s anti-Brexit propaganda

I genuinely believe that the “Cross Whitehall Brexit Assessment” work, leaked by Cabinet and now published by Hilary Benn’s Referendum-reversal supporting committee, is doom-biased and useless as a decision tool. Even if it were right to try to reopen the debate on economics, this document is full of holes, outlandish as to assumptions, and opaque so it cannot be properly assessed. The “Assessment” looks like it double counts negative effects, overplays loss of EU access, underplays and ignores substantial opportunities, and doesn’t properly account for achievable mitigation of, for example, customs and border costs. I am shocked it was served up to Cabinet, even if it was flagged as provisional. In my previous life as a fund manager, I would have sent it back to the analysts as not ready to be presented. Regrettably, it does call into question what our civil service as directed by Ministers is up to… Whatever its genesis I regret to have to say though that it and the pro-EU economic propaganda tools that preceded it are indeed “cod” economics: not fit for professional use – Marcus Fysh MP for the Telegraph (£)

Suella Fernandes: Brexit. I am more excited than ever about what the future holds

As the nation with the world’s language, a leading financial centre, the home of parliamentary democracy and a legal system emulated around the world, as well as being a net contributor to the EU and one of the EU’s biggest customers, our prospects as we leave the EU are bright… With 90 percent of growth expected to come from outside Europe in the coming years, by leaving the EU we will put ourselves in a better position to capitalise upon that growth. Free trade has historically led to more consumer choice, jobs and prosperity. It has enabled millions of people around the world to be lifted out of poverty… This does not mean we want to turn our backs on our European partners – far from it. True, there will be some changes: we are leaving the Single Market and Customs Union, and it follows that there will be less access to each other’s markets. But that should not mean the undoing of our countless achievements so far. We have solid foundations built from close relations with EU Member States and the rest of the world. Those foundations are underpinned by international agreements that cover everything from trade to air services, fisheries, data flows and more. We are working to help ensure that we continue to enjoy the benefits of these agreements. – Brexit Minister Suella Fernandes MP for ConservativeHome

Asa Bennett: Jeremy Corbyn should want a Brexit that works for the many, not the EU

The news that Her Majesty’s Opposition would be more than happy, if it took power, to leave the UK’s trading policy in the hands of Brussels bureaucrats went down well with Michel Barnier. The Frenchman shelved his normal reluctance to comment “on domestic politics” in order to express his approval. Mr Corbyn’s customs union plan, he proclaimed, would offer a “significant part of the solution” to the Irish border question. Monsieur Barnier must have known how desperate Labour is for their leader to seen as a serious player on the international stage, as we now know the party was itching to boast about his few words of praise. The Guido Fawkes team have got their hands on a draft press release from Sir Keir Starmer, headlined: “Labour secure EU backing for customs union proposal”. The Shadow Brexit Secretary claims that “it is understood” that the European Parliament is set to “adapt its resolution to reflect the wording of Jeremy Corbyn’s customs union policy”, and brags that Labour’s backing “from the EU Commission and Parliament” will “heap pressure” on Theresa May. Mysteriously, that document has not seen the light of the day (until now). Labour has been telling reporters that it wasn’t a press release, although are coy about what exactly it was intended to be. Might officials have got cold feet after hacks pointed out how oddly helpful they were being to Brussels by pushing for a Brexit shift in their preferred direction? – Asa Bennett for the Telegraph (£)

  • Draft Starmer press release that shows Labour working with Brussels – Guido Fawkes

Brexit in brief

  • Jacob Rees-Mogg: Hard-line Brexiteer is the darling of the Tory right and also the strangest insurgent in the British Parliament – Tom McTague interview for Politico
  • The European Commission’s penchant for failures – Jayne Adye for the Conservative Online
  • What does Theresa May really think about Brexit? – James Blitz for the FT (£)
  • The EU’s cherry-picking is unacceptable – Robert Bates for Get Britain Out
  • EU rule prevents British cops probing MPs’ finances – Guido Fawkes