Liam Fox deepens cabinet rift by saying Britain ‘will survive’ even if we’re forced out of EU without a trade deal
International Trade Secretary has also locked horns with Theresa May over the Single Market and Customs Union
LIAM FOX has deepened a Cabinet rift with Philip Hammond after saying Britain will “of course survive” without securing a new trade deal with the EU before Brexit.
The International Trade Secretary has also locked horns with Theresa May after No10 refused to back up his demand that the UK leaves the Single Market and Customs Union on March 30 2019.
Dr Fox’ also puts him at odds with the Chancellor, who wants Britain to leave the EU “via a slope not a cliff-edge” and wants to retain the benefits of both models during the transitional period.
But setting out his red lines yesterday, Dr Fox said: “You cannot leave the European Union and be in the single market or the customs union.”
He gave a much more optimistic prediction of Brexit negotiations than Mr Hammond’s stance - saying a new free trade agreement with the EU “should be one of the easiest in human history” because the UK already meets EU standards.
The Cabinet minister said: “The only reason we would not come to a free and open agreement is because politics get in the way of economics”.
He added: “We don’t want to have ‘no deal’, it is much better that we have a deal than no deal. We can of course survive with no deal and we have to go into a negotiation with those on the other side knowing that’s what we think.
“But of course we want to come to a full and comprehensive deal with the European Union.”
MOST READ IN POLITICS
Asked about Dr Fox’s red lines on leaving the Single Market and Customs Union, the Prime Minister’s spokesman said: “We are leaving the European Union - the customs union and single market are part of the European Union.
“What we have also said is there will be a period of implementation and we will guarantee that there is no cliff edge.”
Meanwhile it also emerged yesterday that just 1 in ten British firms have started to prepare for Brexit.
The Institute of Directors said 30 per cent were still considering their options but had yet to start putting contingency plans into place.
IoD chief Stephen Martin blamed the Government’s lack of clarity.
He said: “Some changes and costs are inevitable ... but the more information the government can provide on the process of Brexit, the more companies will be reassured they do not have to jump to relocate staff or operations.”