Dominic Raab thrills Brexiteers by saying No Deal means no £39bn divorce bill, full control over immigration and free trade deals
DOMINIC Raab delighted Brexiteers last night by extolling the virtues of a No Deal split from Europe.
The Brexit Secretary said it would mean regaining full control over laws, immigration policy and not having to pay a £39billion divorce settlement.
He said No Deal would give Britain the “unfettered ability to lower tariffs, to bring into effect new free trade deals that we negotiate straight away”.
Mr Raab added: “So, while we are striving for the best outcome and a good deal from these negotiations, we stand ready to deliver Brexit for the British people if there is no deal.”
His hopeful message was at odds with Chancellor Philip Hammond’s warnings of “large fiscal consequences” of leaving without trade deal with the EU.
And, while it thrilled hardline Brexiteers, critics warned that No Deal planning had been left “until very late in the day”.
Mr Raab’s comments came as the Government published its first tranche of papers, spelling out its contingency plans if negotiations with Brussels collapse before exit day in March.
The first papers covered banking, medicines and clinical trials, nuclear research, workplace rights and farm payments.
They represent about a third of the 80 or so technical papers to be released by the end of next month.
In a speech to Westminster, Mr Raab said the two sides were “80 per cent” of the way towards a deal.
He added that getting a deal with Brussels was still the Government’s overriding priority but insisted there were “some countervailing opportunities” to leaving without one.
The devout Brexiteer rejected scare stories about bringing in the Army to distribute food, saying a balanced appraisal was needed.
He did warn of higher credit card charges and online shopping bills as well as voicing fears that British expats were at risk of losing pensions and access to their bank accounts.
And he admitted the fate of British banking businesses would be in the hands of Brussels without a deal.
He announced Britain would unilaterally allow EU financial firms to operate here for three years without changing rules to avoid disruption.
But he conceded that he was no more than hopeful that Brussels hardliners would return the favour.
However, he vowed to go directly to member states and even regions to secure like-for-like arrangements for British businesses and citizens.
Despite his warnings, he also claimed No Deal would bring a swifter end to handing Brussels billions of pounds in divorce payments.
And, he claimed, we would get “the immediate recovery of full legislative and regulatory control, including over immigration policy”.
His approach was praised by Brexiteers, led by former Cabinet minister John Redwood, who said he was very reassured by the papers.
He claimed No Deal would spare Britain the £39billion bill and “we could start spending it now”.
Mr Hammond, however, has said that GDP could fall and borrowing could be about £80billion a year higher by 2033/34 without a deal.
His warning came in a letter to the Treasury select committee — sent without clearance from No 10, which is said to be infuriated by the move.
He has also warned of damaging effects on industries from car-building to retail, saying the impact would be felt hardest in the North East and Northern Ireland.
The Sun Says
NOW, by contrast, is the time for the Tories to CUT taxes.
There is depressing talk of a new hike to fund the NHS. But the public finances are in unexpectedly good shape, the deficit plummeting and growth on the up.
Corporation tax should be as low as Ireland’s, stamp duty slashed to get the housing market moving, fuel duty lowered, and income tax cut too.
With No Deal Brexit more likely, we need to boost the economy and lure investment with a low-tax regime as never before.
Hilary Benn, the pro-EU chairman of the Commons Brexit Select Committee, said: “Ministers have left their No Deal planning very late in the day.
“A lot of questions remain to be answered and they seem to be relying on continued co-operation with the EU without any indication of what would happen if this was not forthcoming.
“Secondly, there is no guarantee for British citizens living in other EU countries about the future of their pension payments.
“These papers show exactly why no deal is unacceptable and why ministers must now ensure that an agreement is reached with the EU which provides a transition period and protects jobs, trade and investment.”
Last night, the EU insisted it was also planning for both outcomes.
A spokesman said: “We don’t operate according to concepts of vindictiveness or forgiveness. We’re working very hard continuously for the orderly withdrawal of the UK.”
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