Theresa May could agree further trade compromise to break deadlock: Brexit News for Tuesday 2 October

 Theresa May could agree further trade compromise to break deadlock: Brexit News for Tuesday 2 October
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There is speculation that Theresa May could agree further compromises on trade to break the Brexit deadlock…

Theresa May is preparing to limit Britain’s ability to strike free-trade deals after Brexit in a significant concession to the European Union aimed at breaking the deadlock in negotiations. The prime minister is ready to propose a “grand bargain”, according to her colleagues, which would keep Britain tied to European customs rules on goods after the transition period ends in December 2020. No 10 will claim that the UK has left the customs union at this point, but by keeping key rules the ability to agree trade deals would be curtailed for many years. – The Times (£)

…as she announces a new post-Brexit immigration system, treating EU citizens the same as those from across the globe

Theresa May has pledged to overhaul Britain’s immigration system, ending freedom of movement and replacing it with a new visa regime which treats EU citizens no differently to those from elsewhere in the world, No. 10 Downing Street said Monday evening. In a statement, the U.K. prime minister said a single new system would be introduced to reduce low-skilled immigration from the EU. A long-standing home secretary before she became prime minister in 2016, May has long advocated tighter restrictions on immigration. She is one of the Conservative party’s most vocal supporters of a target to reduce immigration to the tens of thousands a year, something that dates back to her predecessor David Cameron’s 2010 manifesto, though a target that’s been consistently missed. – Politico

  • EU migrants should have to wait five years before they can claim benefits in the UK, says Iain Duncan Smith – The Sun

> Iain Duncan Smith MP yesterday on BrexitCentral: The Chequers plan would not deliver a properly controlled migration policy

Philip Hammond says a ‘SuperCanada’ Brexit deal is ‘not on offer’ from the EU…

U.K. Chancellor Philip Hammond said today a Canada-style free-trade agreement with the European Union was “not on offer” from Brussels, criticizing Boris Johnson’s so-called “super Canada” proposal as unrealistic. “The problem is it’s not available — it’s not on offer,” Hammond told the BBC Radio 4’s Today program today, ahead of his speech at the Conservative Party conference in Birmingham. “You have to understand the position of the people you’re negotiating with.” Hammond claimed the only option Brussels has put on the table would tear the U.K. – Politico

  • Philip Hammond: Boris Johnson is a ‘big picture man’ – BBC News
  • Hammond compares May’s Brexit plan to the light bulb – Sky News

> David Campbell Bannerman MEP today on BrexitCentral: What would be so Super about a SuperCanada deal with the EU?

…as the Chancellor wrongly claims the UK would erect a hard Irish border in the event of a no-deal Brexit…

Britain would have to enforce border controls on the Irish border if the U.K. leaves the European Union without a deal, Chancellor Philip Hammond said today. In remarks which appear to undermine the official government position that the U.K. will do all it can to avoid border checks after Brexit, Hammond said that under World Trade Organization rules, London would have no choice but to reinstate checks, speaking at a fringe event at the Conservative Party conference in Birmingham. – Politico

…while he refuses to say Brexit is good for Britain

Three times Big Phil Hammond was asked on Good Morning Britain whether he thought Brexit was a good idea, and three times he completely dodged the question: PM: “Do you think Brexit is a good idea?” PH: “Yes, the British people have determined that we are leaving the EU. Our challenge as a Government…” PM: “So just to clarify… do you personally believe this is a very good idea for the country and that it will work?” PH: “I have already answered your question. I’m a democrat, so I believe we should do what the British people have decided…” PM: “But that’s not what my question is… do you personally, as the Chancellor… believe that this is a good thing for the country that we’re doing, and do you personally think it will be successful and a positive thing for the country…?” PH: “…Delivering the plan that Theresa May has set out…” As Theresa May herself said, “you can only deliver Brexit if you believe in Brexit”. How does she expect to be able to do that if her Chancellor doesn’t agree? – Guido Fawkes

  • Philip Hammond takes a pop at Donald Tusk but still says Britain will have to stay tied to EU after Brexit – The Sun

Brexit Secretary Dominic Raab says Britain could slash business tax to 10% after a no-deal Brexit

Britain could slash corporation tax to 10 per cent to keep firms in the UK after a No Deal Brexit, Dominic Raab claimed last night. In the most incendiary warning to the EU yet, the Brexit Secretary said the dramatic tax cut was one part of the Chancellor’s “fiscal capacity” to keep the economy afloat if talks collapse. Tax on company profits currently stands at 19 per cent, with a pledge to reduce it 17 per cent by 2020. But Mr Raab the Treasury would use every possible measure to give the UK and edge of the EU if talks collapse without a new trade deal in place. He warned Brussels that the UK would “pull every lever we’ve got to see us through what short term buffeting or disruption we have.” – The Sun

  • Dominic Raab: Time for EU to ‘get serious’ in Brexit talks – Politico

> On BrexitCentral yesterday: Dominic Raab’s speech to the Conservative Conference

Boris Johnson has reportedly said he would delay Brexit by six months if he became PM…

Boris Johnson has told senior Tories he would delay Brexit by at least six months if he can topple Theresa May to become PM. The former Foreign Secretary wants to use the pause to reset stalled negotiations with the EU. The mop haired Tory’s plan has surfaced after he began privately setting out his leadership stall to some Cabinet ministers in a bid to win them over, The Sun can reveal. Boris is convinced Britain needs more time to prepare for a no deal scenario to regain the upper hand as endgame begins with Brussels on the two year-long Brexit talks. But the move risks angering Leave voters, as the UK will not exit the EU under his plan until the end of October 2019 at the earliest. One Cabinet minister that Boris has confided in said: “People will not put up with us delaying Brexit by a single day, so I’ve told Boris I don’t think his plan works. – The Sun

…as the ex-Foreign Secretary prepares to address the conference fringe today

Boris Johnson will storm into the Tory conference to a rapturous welcome from activists and launch a blistering attack on Theresa May and her policy on Brexit. He will spend just a few hours in Birmingham, but will deliver a barnstorming speech his supporters hope will pave the way for a Tory leadership bid within weeks. The former foreign secretary will call on the prime minister and the Cabinet to “chuck Chequers”, after controversially describing the plan as “deranged” at the weekend. And in his lunchtime speech at a ConservativeHome fringe event, he will say the Tories need to “believe in Conservative values” if they are to beat Labour leader Jeremy Corbyn. Setting himself directly at odds with the prime minister and Chancellor Philip Hammond, Mr Johnson will put tax cuts at the top of his personal policy agenda.   – Sky News

Jean-Claude Juncker maintains UK planes would be blocked from landing in the EU under a no-deal Brexit

Jean-Claude Juncker accused Brexit campaigners of delivering no “actual information” ahead of the historic vote which saw Britain decide to quit the European Union in June 2016 – reaffirming threats to stop UK planes landing in the EU. The gloating eurocrat insisted Brexiteers left British voters without critical information about potential problem that may emerge from the country’s efforts to leave the EU. Mr Juncker said Britons are only learning now about the potential impact to air travel and pet passports during a citizens’ address in Freiburg, Germany. The European Commission President told his audience the thing he “really regrets is there was no real Brexit campaign in terms of actual information”. – Express

UK and US will be allowed to join some EU military projects

The EU’s joint military pact will be open to countries outside the bloc, such as the U.S. and U.K. after Brexit, but only on a case by case basis, according to a confidential document seen by Politico. The piecemeal solution represents a compromise between countries enthusiastic for outside involvement in EU military projects and those worried that opening up the pact would give outsiders the chance to grab lucrative defence contracts. – Politico

EU diplomats say Hunt’s Soviet comparison was ‘insulting’

Three serving EU ambassadors to London have publicly criticised UK Foreign Secretary Jeremy Hunt for comparing the European Union to the Soviet Union. Mr Hunt told the Conservative Party conference on Sunday the EU was acting like the USSR in trying to prevent any members leaving the bloc. The diplomats said the comparison was wrong and insulting to those who had lived through years of Soviet rule. But UKIP leader Nigel Farage said Mr Hunt was “using my language”. Relations between the UK and the EU are on edge after European leaders publicly criticised Theresa May’s plan for future co-operation after Brexit at a summit in Austria last month.  – BBC News

May has a duty to consider alternatives to Chequers as Brexit looms, says Nicola Sturgeon

Britain remaining in the European single market after Brexit is now a “stronger political possibility” than it has been for the past two years, Nicola Sturgeon will insist. The Scottish First Minister will argue that the “only glimmer of hope” emerging from the “fiascos of the last few weeks” is that Theresa May’s Chequers deal has been “exposed as untenable”. As a result she will say that staying part of the single market and customs union after the UK leaves the European Union next March “must now be a stronger political possibility than at any time in the last two years”. – Press Association

Ruth Davidson warns People’s Vote campaign they cannot have a Brexit re-run without giving the SNP a second shot at smashing up the Union

Ruth Davidson warned campaigners for a ‘People’s Vote’ they cannot have a re-run on Brexit without giving the SNP a second go at smashing the Union. The Scottish Tory leader said referendum results had to be respected or there was no way to heal the divides caused by binary choices. Ms Davidson said she would be a ‘hypocrite’ if she wanted a re-run on Brexit after campaigning for Remain but insisted the 2014 Scottish independence result was ‘sacrosanct’.  SNP leader and First Minister Nicola Sturgeon has repeatedly demanded a new referendum on Scottish independence since the Brexit vote but been rebuffed by Theresa May and Ms Davidson. – Daily Mail

James Forsyth: What Ruth Davidson’s speech says about the second referendum debate

For a certain wing of the Tory party, Ruth Davidson is their Queen over the water. Their fondness for her was only increased by her saying that she won’t run for leader because she cares too much for her mental health and relationship. So it was striking that the Tories decided that the best use of Davidson at this conference was to argue against a second referendum. Davidson made all the usual arguments against a second referendum with typical gusto. She argued that another Brexit vote would lead ‘to more division, more rancour and a politics trapped in the past.’ But what was most interesting was the fact that this was the focus of her speech.- James Forsyth for The Spectator

Tony Lodge: Will Chequers leave us short of power?

Few areas of policy surrender better exemplify the failure of the Government’s Chequers proposal than its plan to keep the UK tied to EU energy rules after Brexit. Though it has received little attention amongst the sound and fury of the wider debate, the Chequers plan to maintain “continued and broad cooperation on energy” with the bloc should concern those who hoped to see the UK deliver more secure and cheaper energy in the future. The proposals as they stand are dangerous, unaccountable, expensive and risk undermining the security of Britain’s supply after Brexit. – Tony Lodge for CapX

Iain Martin: Back in the USSR: Hunt is right, the EU is behaving appallingly

The Foreign Secretary ‎Jeremy Hunt has appalled ambassadors from EU states, anti-Brexit types and quite a few others with his outspoken criticism of the EU. In a speech to Conservative party conference in Birmingham at the weekend he compared the European Union to the monolithic USSR.‎ If the bossy EU made it this difficult for the UK to leave, he said, then eventually other states it “imprisons” might eventually try to leave. Cue mock fainting and clutching of pearls. It is insulting, says the Estonian government. Ultra-remainers responded with characteristic backing for the EU.   – Iain Martin for Reaction

Brexit in Brief

  • Yes to a Brexit deal. No to a second referendum. – Graham Gudgin for Briefings for Brexit
  • ‘Sack the woman’ – Jacob Rees-Mogg heckled at Brexit rally – Steerpike for The Spectator
  • How a Eurocrat will save Britain from a No Deal Brexit – Denis MacShane for Reaction
  • Remainers pile lie upon lie – Paul T Horgan for ConservativeWoman
  • The speech Boris should give today (but almost certainly won’t) – Michael St George for ConservativeWoman
  • The brutality of Fortress Europe – Tim Black for Spiked
  • Europe can never command our national loyalties – Roger Scruton for The Conservative
  • No-deal Brexit would cost European firms up to $18 billion – Reuters
  • Rees-Mogg slams ‘UKIP-isation’ of Brexit – Sky News
  • Top Brexiteer blasts pro-Leave cabinet ministers who secretly hate the PM’s plans but are too cowardly to admit it – The Sun
  • Theresa May’s is the most divided Tory government of the post-war era – Telegraph (£)
  • UK factories keep ‘calm and carry on’ amid political uncertainty – Telegraph (£)
  • Owen Paterson’s Brexit ‘cockroach’ jibe at May’s Chequers plan – BBC News
  • Belgium demands UK helps tighten security at major port amid surge in migrants trying to cross Channel – The Sun