Brexit

The furore surrounding the Brexit divorce bill is hotting up

The furore surrounding the Brexit divorce bill is hotting up. The weekend’s papers saw speculation that Britain would cough up £36bn as part of a settlement package for its departure from the EU. Nonsense, says Downing Street, with the Prime Minister’s spokesman saying this morning: ‘I don’t recognise the figure’. It’s not only the government hitting back; Tory eurosceptics are also turning up the volume. Yet while the government is eager to talk down the size of the bill, the criticism coming from the backbenches is less nuanced. Instead of quibbling over the amount, the likes of Jacob Rees-Mogg and John Redwood dismiss the bill out of hand. Rees-Mogg wrote on Twitter: ‘There is no logic to this figure. Legally we owe nothing’.

For Iraq’s Kurds, independence looks tantalisingly close

Next month, Iraq’s Kurds head to the polls in an eagerly-awaited independence referendum. Ahead of the vote, on September 25th, the country’s Kurdistan Regional Government is searching for inspiration from abroad. Brexit, unsurprisingly, is an obvious pick; many Kurds are hoping that Kurdexit could – as with Britain’s shock departure from the EU – finally become a reality. Yet for all the parallels between the two movements, the champions of Brexit are lukewarm in their support for the Kurdish cause. Boris Johnson said that Brexit was ‘about the right of the people of this country to settle their own destiny’. He was somewhat colder on the issue of Kurdish independence.

Why fudging Ireland’s Brexit border issue can only mean Troubles ahead

The question of what kind of border after Brexit will exist between Northern Ireland and the Republic will, I predict, become a very thorny one indeed as negotiations crawl into the autumn. Talk of ‘putting the border in the Irish Sea’ — somehow leaving the north inside the EU for customs and immigration purposes, but cut off from European funding — was a red herring that provoked DUP tantrums, but more significant was the weekend outburst from Taoiseach Leo Varadkar. As far as his government is concerned ‘there shouldn’t be an economic border… and we’re not going to help [the British] design some sort of border that we don’t believe should exist in the first place.

Parliament’s new tribe | 5 August 2017

Politics is such a fickle game that it’s perfectly acceptable to believe six impossible things before breakfast without ever having to apologise for being so wrong. Remember, for instance, when everyone was predicting that the dead cert increased majority for Theresa May would lead to the creation of a new party? Perhaps, like everyone else who has since gone on to predict another series of impossible things with equal confidence, it’s easier for us to forget those old certainties. No one talks about a new party any more. The facts have changed, so we’ve changed our minds too. There aren’t the same conditions for that proposed new party about which Tony Blair and other grandees kept dropping loud, clanging hints.

Ireland’s Taoiseach talks tough on Brexit

There are three areas on which the EU insists that the Brexit negotiations must make progress on, before proper trade talks can start: the so-called divorce bill, the rights of EU citizens in the UK and the Irish border. Today, the Irish PM said that no progress had been made on this issue, that the Brexiteers had had 14 months to devise a plan and hadn’t come up with anything adequate. Implicit in the Taoiseach’s speech is a threat to block the start of trade talks this autumn. If Dublin doesn’t think any progress had been made on the border question, the European Commission is highly unlikely to recommend to the Council that the EU moves on to the next stage of the negotiations.

What the papers say: Mark Carney, Brexit & Corbyn’s silence over Venezuela

Mark Carney is often accused of being downbeat about Brexit. But the Bank of England’s quarterly inflation report is ‘more sanguine than one might expect’, says the FT. The paper points out that despite a cut in the country’s growth forecast, the Bank ‘expects stronger net trade and business investment to drive a recovery in 2019’. Yet Carney remained ‘candid’ about the damage Brexit is already doing to Britain's economy. Businesses are investing less, reports the FT, and ‘this has uncomfortable implications’. With the Bank warning that ‘the level of investment in the UK economy (will be) be 20 percentage points lower in 2020 than it forecast before the referendum’, this damage looks sure to continue.

Portrait of the week | 3 August 2017

Home Philip Hammond, the Chancellor of the Exchequer, appeared to wrest control of plans for Brexit from cabinet rivals, while Theresa May, the Prime Minister, was in Italy and Boris Johnson, the Foreign Secretary, was in Australia. Mr Hammond foresaw a ‘transitional deal’ ending by June 2022, when the next general election is due. He said it would be ‘some time before we are able to introduce full migration controls between the UK and the European Union’. Liam Fox, the International Trade Secretary, insisted that the cabinet had not agreed to a three-year transition. Mr Johnson said he was unaware that Amber Rudd, the Home Secretary, had announced a year-long inquiry about the costs and benefits of EU migration.

Mark Carney’s gospel: give us an interest rate rise, Lord – but not yet

Is there anything more predictable than a Mark Carney press conference? The poor sod in Groundhog Day got to enjoy more variety and suspense. Explaining why, yet again, the Bank of England had decided not to raise interest rates, Governor Carney told us that rates could rise ‘faster than markets expect’. That wouldn’t be all that hard, given that markets have pretty well given up on Carney ever shifting rates. Maybe they believed him the first time, in June 2014, when he said that a rate rise could come ‘sooner than markets expect’. Maybe they were still inclined to take a little bit of notice in July 2015 when he told us that he expected rates to rise over the next three years to reach around 2 per cent. But now Carney has become a bit of a yawn.

Losing our religion

Sir James MacMillan’s European Requiem, performed at the Proms on Sunday, isn’t about Brexit. The composer had to make this clear in a Radio 3 interview just before the broadcast, because the BBC was just itching to cast the work — a melancholy score, despite its thunderous drumbeats — as a lament for us leaving the EU. That would have been neat, given that the second half of the concert consisted of Beethoven’s Ninth, whose ‘Ode to Joy’ has been clumsily appropriated by Brussels. Incidentally, some Remainers in the audience chattered through the symphony’s first three movements, impatient for their Big Tune.

I’m a ‘Brexit extremist’ and proud of it

We used to think it was noble when people made sacrifices for their beliefs, when they were happy to endure hardship in the service of a political goal or moral cause. Now we call it 'extremism'. Now anyone who is so devoted to an ideal that he's willing to see his own daily comforts diminished to make that ideal a reality is likely to be branded a nutter. I mean, what kind of loon puts his beliefs ahead of his bank balance? Consider the mouths-agape response to new YouGov research published yesterday, showing that many Leave voters are willing to pay a high price for Brexit.

The Brexit betrayal bandwagon is growing

It may not be this week. It may not be Boris Johnson. But eventually a minister will break with this tottering government and establish himself (or herself, for it could be Andrea Leadsom) as the leader of the diehard right. Brexit is crying out for its Ludendorff; the scoundrel who can blame his failures on everyone but himself. The smart move for today's right wing politicians who find their careers blocked is to break with the Tory leadership – whatever or whoever that may consist of – and resort to old  slogans. The referendum delivered a mandate to leave, Johnson, or whoever takes up the challenge of building a new nationalist right, could say.

How the economics of cow-milking can help explain Brexit | 1 August 2017

Writing about judicial appointments, I incautiously compared a silly interview question asking a judge to cite an example of when he had acted with integrity, to asking a farmer, ‘How many times a day do you milk your cows?’ Jamie Blackett, a farmer, writes to say that, in the 21st century, it is a question to which the answer reveals much. He explains. Farmer One milks his 50 cows only once a day. He follows the Norwegian system and makes a marketable green virtue of leaving the calf on the cow. He lives near rich people and sells them his artisan cheese and yoghurt. He voted Remain. Farmer Two milks 120 cows twice a day in the time-honoured way. Even when the price is good he earns less than the minimum wage. He scrapes extra money as a delivery driver.

What does the charity sector want from Brexit? A clean break and tax freedom

When it comes to Brexit, for many organisations it seems to be all doom and gloom. Yes, plenty of individual Brexiteers are still glad that they voted to leave the European Union. But the uncertainty that still looms over the UK’s future in so many areas – trade, farming, immigration and more, means that in many sectors, Brexit is seen as a negative. There’s some good news for Leavers today, though. The Charity Finance Group (CFG), which provides support for finance professionals working in the charity sector, has published a new report entitled ‘A Brexit that works for everyone’, analysing what would be the best option for Britain’s charity sector.

Exports are booming thanks to the competitive pound

Remember George Osborne in his hi-viz jacket as he toured the nation’s metal-bashers and gromit-manufacturers in furtherance of his elusive ‘rebalancing of the economy’ away from services and consumers and towards manufacturing and exports? What a shame he is not still in office to witness his ‘march of the makers’ finally becoming a reality. This month’s Purchasing Managers’ Index (PMI) for manufacturing has come in at a healthy 55.1, comfortably exceeding expectations. Any figure above 50 suggests expansion. The index was boosted especially by a sharp rise in new export orders, which rose at their second fastest level in the 17 year history of the index.

What the papers say: Philip Hammond must ‘belt up’

Philip Hammond, of all people, ought to ‘relish’ Brexit and the opportunity it will hand to Chancellors to set their own tax rates. But in ‘yet another blunder’, says the Sun, the current occupant of No.11 has told the French that Britain won’t lower taxes. ‘Has he gone made?’ the paper asks. Back in January, Hammond said that lower taxes and limited regulation could be an important way of luring businesses to Britain after Brexit. ‘As a Conservative, that is exactly what he should be saying’. Now, though, says the Sun, ‘he has contradicted himself’. Whatever level the Chancellor plans to set tax rates, ‘why make any promises and surrender a potent bargaining chip?’, asks the Sun.

Philip Hammond creates a one-man Cabinet split over Brexit

Leaving Philip Hammond in charge of the government was always going to be a risk because of his habit of putting his foot in it. There was the debacle of his first budget, then his saying in Cabinet that driving a train was so easy that even a woman could do it, and his comments that public sector workers are “overpaid”. Now, with the Prime Minister walking in the Alps, Hammond is in charge and has goofed again – this time in an interview with Le Monde. “I often hear it said that the UK is considering participating in unfair competition in regulation and tax. That is neither our plan nor our vision for the future. The amount of tax we raise as a percentage of our GDP puts us right in the middle of the pack.

How the economics of cow-milking can help explain Brexit

Writing about judicial appointments, I incautiously compared a silly interview question asking a judge to cite an example of when he had acted with integrity, to asking a farmer, ‘How many times a day do you milk your cows?’ Jamie Blackett, a farmer, writes to say that, in the 21st century, it is a question to which the answer reveals much. He explains. Farmer One milks his 50 cows only once a day. He follows the Norwegian system and makes a marketable green virtue of leaving the calf on the cow. He lives near rich people and sells them his artisan cheese and yoghurt. He voted Remain. Farmer Two milks 120 cows twice a day in the time-honoured way. Even when the price is good he earns less than the minimum wage. He scrapes extra money as a delivery driver.

I may disagree with him, but George Osborne’s first duty is to his readers

I may disagree with George Osborne on the odd issue. Like Britain’s relationship with the EU, our trading future and the exercise of democratic sovereignty. And as a Conservative minister, I certainly sometimes wince at the criticism his paper directs at the government of which I’m proud to be a part. Indeed, wince is putting it mildly. But no one can deny that, in journalistic terms, he’s proving a brilliant editor of the Evening Standard. He’s made the paper talked about in a way it hasn’t been since Paul Dacre edited it in the 1990s. He’s produced some great front pages. And he’s put the paper at the heart of critical debates Londoners care about.

An Irish Sea border would damage British-Irish relations

Dublin and London had been fairly tight since December 1993 and the Downing Street Declaration—until yesterday morning. The Times led with 'Irish want sea border with UK after Brexit'. The DUP's Sir Jeffrey Donaldson rushed breathlessly on to the Today programme to say there was 'no way' his party would accept it. The notion isn't new.  The idea is that the customs and immigration checks move away from the land border, and are done on ports or planes reaching either island. It pours cold seawater on Downing Street's preferred idea that a 'frictionless border' can just rely on nifty cameras. 'We do not want to pretend ... we can solve the problems of the border on the island of Ireland through technical solutions like cameras and pre-registration and so on.

Politicians are still not sure what Brexit means or whether they can make a success of it

It was only a year ago that ‘Brexit means Brexit, and we’re going to make a success of it’ seemed like a reasonably fresh phrase which could actually mean something. Now, we don’t hear so much about making a success of the thing as we do about getting through it in one piece, hopefully with Theresa May’s Cabinet agreeing on a few things along the way too. The Cabinet is slowly starting to realise that a little pragmatism on both sides wouldn’t hurt as the government burrows into the detailed negotiations with the European Union. A bit of agreement on transitional periods, if not immigration, is handy, but this is just the Cabinet we’re talking about, not other EU countries.