Former Chancellor Philip Hammond Spells It Out: ‘We’ve Got Poorer Because Of Brexit’

Britain has got poorer because of Brexit, former chancellor Philip Hammond has admitted.

The senior Tory said the Covid-19 pandemic and the soaring cost of energy have also contributed to the cost of living crisis.

His comments are significant because the government has repeatedly denied that leaving the European Union has had a negative impact on the economy.

Speaking to Bloomberg TV, Hammond said: “The truth is we’ve got poorer. We’ve got poorer because of Brexit, we’ve got poorer because of Covid, we’ve got poorer because of the changed energy economy in the world, the higher price of the energy we consume.

“And that has to be reflected in reduced living standards and the transmission mechanism for those external shocks into the domestic economy is inflation.”

Hammond – who was chancellor between 2016 and 2019 and an MP for 22 years – backed Remain in the Brexit referendum.

His comments come after the International Monetary Fund forecast last month that the UK economy will perform worse than every other major country in 2023.

Even Russia – hit by swingeing economic sanctions by the global community due to its invasion of Ukraine – will out-perform Britain, the IMF said.

In its latest World Economic Outlook update, which was released on the third anniversary of Brexit, the IMF predicted the UK economy will shrink by 0.6% this year, compared to its October prediction that it would grow by 0.3%.

By contrast, every other country in the G7 group of advanced nations will see their economy grow – with America’s set to expand by 1.4%.

Russia’s economy will grow by 0.3% over the next 12 months, the IMF said.

Among the other G7 nations, the IMF’s 2023 predictions show growth, 0.1% in Germany, 0.7% in France, 0.6% in Italy, 1.8% in Japan and 1.5% in Canada.

China’s economy will grow by 5.2%, the IMF said, with India’s expanding by 6.1%.

Overall, the IMF said the global economy will grow by 2.9%.

Share Button

Nick Ferrari Slaps Down Minister For Citing Covid-19 Vaccine As A Brexit ‘Achievement’

Nick Ferrari slapped down a minister today after he cited the Covid-19 vaccine as a Brexit “achievement”.

Transport minister Richard Holden was asked to name the three “best achievements” of Brexit on the third anniversary of the UK’s departure from the European Union.

But when he named the Covid vaccine roll-out as his first example, veteran presenter Ferrari told him that was “not true”.

Holden told LBC: “Well, I’d say from the start the biggest impact we’ve seen over the last couple of years is probably Britain’s ability to fulfil its own vaccine programme…”

Ferrari interrupted: “Well, you will be aware of course the independent website Full Fact say that’s not true. And even the boss of our own MHRA (Medicines and Healthcare products Regulatory Agency) Dr June Raine has also said that’s not true. So can we strike that one out?”

Holden conceded that he was “absolutely right” and the country could have done it “within the EU”.

But he added: “I think the pressure, if we’d been in the EU to be part of an EU scheme, would have been quite unbelievable.”

For his second example he cited the UK’s procurement rules and for his third he outlined Solvency II reforms that have enabled Britain’s financial services sector to “remain head and shoulders above the rest of Europe”.

Meanwhile, the International Monetary Fund has forecast that the UK economy will perform worse than every other major country in 2023 – including Russia.

Share Button

‘Lifelong’ Tory Voter Blasts Jacob Rees-Mogg Over Brexit ‘Benefits’ On Question Time

Audience members on the BBC’s flagship politics show have expressed their frustration about the impact of Brexit on their lives – with one suggesting the “oven ready” withdrawal agreement was more like a “frozen turkey taken out five minutes before Christmas day”.

While leaving the EU has fallen down the political agenda, with no major political party arguing for the UK to rejoin even the single market, BBC’s Question Time aired the frustrations of some over the current situation – from trade to travel.

One “lifelong” Tory voter let off steam about the UK’s decision to quit to the bloc having impacted Britain’s wine industry, with former minster and Brexit evangelist Jacob Rees-Mogg taking the flack.

The audience member said: “I’ve spent the last 30 years as a director in the wine industry so I have experienced first-hand just how terrible things have become post-Brexit.

“I find it incredibly disappointing, as a lifelong Conservative voter, to hear Jacob saying all of this stuff.”

He added: “Just from a bureaucracy point of view and the paperwork, I mean everything.

“I’ve been importing and exporting wine for 30 years for a leading wine company and we just see delays, we see paperwork problems, everything has become so much more complicated.

“And the whole point about this being ‘oven ready’, it’s about as oven ready as a frozen turkey taken out five minutes before Christmas day, it really is a joke.”

He added: “I think it’s time someone starts being honest. None of the political parties are actually talking about Brexit and it’s one of the most fundamental problems we’ve got.”

He went on: “I look at the fact that people can tell untruths time and time again and then they are just forgotten, and Brexit was the beginning of all this, and I think as a society it’s incredibly worrying about where this is going to lead to.”

Rees-Mogg, the former business secretary, cited democracy, corruption in Brussels and holidays to Portugal as examples of the benefits of Brexit.

When another audience member criticised the long wait at border control when visiting Spain post-Brexit, Rees-Mogg suggested the British public go “where they are welcome”.

“If the Spanish don’t want British custom there is no need to spend your hard earned money in Spain,” he added, highlighting the virtues of Portugal recognising “having British tourists is a good thing to do”.

Share Button

Former Minister Admits UK’s Post-Brexit Trade Deal With Australia Is ‘Not Very Good’

Former environment secretary George Eustice has admitted the UK’s post-Brexit trade deal with Australia is “not very good” in a barely disguised attack on Liz Truss’s time as international trade secretary.

Eustice served in the cabinet under Boris Johnson, but was sent to the backbenches when Truss became prime minister.

Speaking during a general debate on the Australia and New Zealand deals in the Commons, Eustice said he is enjoying “the freedom of the backbenches”, particularly as “I no longer have to put such a positive gloss on what was agreed”.

Eustice blamed Truss, who served as international trade secretary from 2019 until 2021, for setting an arbitrary target.

He warned that “unless we recognise the failures that the Department for International Trade made during the Australia negotiations, we won’t be able to learn the lessons for future negotiations”.

The first step, he said, is “to recognise that the Australia trade deal is not actually a very good deal for the UK”, adding: “It wasn’t for lack of trying on my part.”

Eustice went on: “The UK went into this negotiation holding the strongest hand, holding all of the best cards, but at some point in early summer 2021, the then trade secretary (Truss) took a decision to set an arbitrary target to conclude heads of terms by the time of the G7 summit, and from that moment the UK was on the back foot repeatedly.

“In fact, at one point that then trade secretary asked her opposite number from Australia what he would need in order to be able to conclude an agreement by G7, and of course the Australian negotiator very kindly set out the Australian terms, which then shaped eventually the deal.”

Truss became notorious for the photoshoots during her overseas trips when trying to forge new trading partnerships. Perhaps the most infamous came when she posed with a Union Jack umbrella atop a London-made Brompton bicycle in front of Australia’s iconic Sydney Harbour Bridge. “Get on your bike and look for exports,” Truss tweeted.

Eustice also has called for the resignation of the interim permanent secretary for the Department for International Trade, Crawford Falconer, after telling the Commons he “resented” people who understood technical trade issues better than he did.

The ex-cabinet minister said Falconer’s approach during the negotiations was to “internalise” Australian demands even if they were against UK interests, and that his advice was “invariably to retreat and make fresh concessions”.

Eustice insisted on having always been a “huge fan” of the British civil service, but added: “I do want to make comment about personnel within the Department for International Trade, because Crawford Falconer, who is currently the interim permanent secretary, is not fit for that position, in my experience.

“His approach always was to internalise Australian demands, often when they were against UK interests, his advice was invariably to retreat and make fresh concessions and all the while he resented people who understood technical issues greater than he did.

“He has now done that job for several years. I think it would be a good opportunity for him to move on and to get a different type of negotiator in place, somebody who understands British interests better than I think he’s been able to.”

Share Button

UK Economy ‘Permanently Damaged’ By Brexit, Says Ex-Bank of England Official

A former Bank of England policymaker has said that the UK economy has been “permanently damaged” by Brexit, because it reduced the country’s potential output and resulted in reduced investment into UK businesses.

In an interview on Bloomberg TV, Michael Saunders said that Jeremy Hunt’s “austerity budget” this week is a consequence of leaving the EU.

Saunders joined the rate-setting Monetary Policy Committee shortly after the Brexit referendum in 2016, and left the role in August this year.

He said: “The UK economy as a whole has been permanently damaged by Brexit. It’s reduced the economy’s potential output significantly, eroded business investment.

“If we hadn’t had Brexit, we probably wouldn’t be talking about an austerity budget this week. The need for tax rises, spending cuts wouldn’t be there if Brexit hadn’t reduce the economy’s potential output so much.”

On Sunday, Hunt denied that Brexit has made the UK poorer – despite the government’s own Office for Budget Responsibility saying it has.

The chancellor, who campaigned for Remain in the 2016 referendum, insisted the UK can make a “tremendous success” of leaving the EU.

He said it is important to consider the effects of Brexit “in the round”, and that Brexit brings both “costs” and “opportunities”.

The chairman of the OBR, Richard Hughes, last year said that Brexit would reduce the UK’s potential gross domestic product by 4% in the long term.

Saunders, who is now senior economist at Oxford Economics, added some of the ambitions behind Liz Truss’s failed mini-budget were correct in that “raising potential output is the big challenge”, but her “suggested solution to cut taxes and deregulate are wrong”.

He added: “I put the emphasis more on improving trade links with the EU, improving education, training, and also fixing this worrying rise in long-term sickness, which has been reducing the workforce so much.”

Saunders said the economy has faced a “challenging period with the Brexit vote, the depreciation of sterling, a long period of political uncertainty, the pandemic and then renewed political uncertainty”.

Last week, former Bank of England governor Mark Carney doubled down on his claims the move has taken a toll on the pound, suggesting the decision to leave the EU continues to play a part in the UK’s financial woes.

Share Button

Jeremy Hunt Denies Brexit Has Made The UK Poorer And People Are Making The Same Point

Jeremy Hunt has denied that Brexit has made the UK poorer – despite the government’s own Office for Budget Responsibility saying it has.

The chancellor – who campaigned for Remain in the 2016 referendum – insisted the UK can make a “tremendous success” of leaving the EU.

He said it is important to consider the effects of Brexit “in the round”, and that Brexit brings both “costs” and “opportunities”.

Hunt told the BBC’s Sunday with Laura Kuenssberg that he would set out “some of the ways that I think we can make a success of it” in Thursday’s autumn statement.

Asked if he denies Brexit has slowed the UK’s economic growth at home, Hunt said: “What I don’t accept is the premise that Brexit will make us poorer.

“I don’t deny there are costs to a decision like Brexit, but there are also opportunities, and you have to see it in the round.

“Literally within months of formally leaving the EU we had a once-in-a-century pandemic, which has meant the process of outlining what the opportunities are has taken longer, but I think we need to do that now.”

But Twitter users pointed out that the chairman of the OBR, Richard Hughes, last year said that Brexit would reduce the UK’s potential gross domestic product by 4% in the long term.

Last week, former Bank of England governor Mark Carney doubled down on his claims the move has taken a toll on the pound, suggesting the decision to leave the EU continues to play a part in the UK’s financial woes.

Downing Street has suggested Rishi Sunak is no longer dwelling on the “clear decision” made by the British people six years ago.

Share Button

Tory Peer Lord Frost Doesn’t Think ‘Anything Has Gone Wrong’ As Pound Touches Record Low

A Conservative peer and former chief Brexit negotiator has said he doesn’t think “anything has gone wrong” after a day of turmoil on the markets which saw the pound briefly slump to an all-time low.

Lord David Frost described the dramatic events since Friday’s mini-budget as “unwarranted” and an “over-reaction” as the Bank of England moved to assure investors it “will not hesitate” to raise interest rates to prop up the value of sterling.

Chancellor Kwasi Kwarteng’s £45 billion package of tax cuts has prompted a run on the currency that has caused wider fears about the state of the economy.

But Lord Frost, speaking on BBC Radio 4’s PM programme as Kwarteng avoided a public statement, appeared relaxed about the pummelling of the pound.

He said: “Well I don’t think anything has gone wrong actually. Liz Truss promised change, a different economic approach to get us back to growth and away from stagnation and that means a number of things have got to happen.

“Yes, rates have got to go up to get inflation under control, we’re going to have to have lower taxes and fiscal support to get people through this period, we’re going to have lots of structural reform as the chancellor said today and we need to hold down spending in the medium term and that’s coming in November.

“So I think what we’ve seen in the last few days is (a) unwarranted and a over-reaction approach to some elements of that, you’ve got to look at the total package which is taking the country on a different direction to get us out of stagnation and get us back to growth.”

Such was the market turmoil on Monday there was growing speculation in financial markets that the Bank would make an emergency interest rate rise after it hiked rates only last week to 2.25% from 1.75%.

Instead, with the pound fragile and bond prices still tumbling, Kwarteng issued a statement just before the British stock market closed to say he would set out medium-term debt-cutting plans on November 23, alongside forecasts from the independent Office for Budget Responsibility of the full scale of government borrowing.

The central bank welcomed “the commitment to sustainable economic growth” from Kwarteng and the independent scrutiny that the OBR growth and borrowing forecasts would bring.

Meanwhile, banks and building societies are withdrawing some of their mortgages from sale.

Three lenders – Halifax, Virgin Money and Skipton Building Society – have so far withdrawn some of their products amid the uncertainty, according to reports.

Share Button

A Cabinet Minster Thinks The Tories Haven’t Had A ‘Clear Run’ Since Coming To Power

A cabinet minister and close Liz Truss ally has argued that the Conservatives have not had a “clear run” in power over the last decade.

Appearing on ITV’s Peston programme, levelling up secretary Simon Clarke, a former top Treasury minister, said that no Conservative government “has had a clear run at events over the entire course of the last decade, it has been one crisis after another”.

Critics pointed to the fall-out from the Brexit referendum – which saw off two Tory prime ministers – as at least one self-inflicted crisis, and how tackling big events is the nature of governance.

Other disruption since the Tories came to power in 2010 includes the Cameron-Osborne austerity programme, the Covid-19 pandemic and Russia’s invasion of Ukraine.

His comment appeared to be a justification for moving to an “unashamedly pro-growth policy” under the Truss premiership.

Clarke added: “What Liz is saying is that we need to accept that we may not get back to normal, that if you like, that the world is in an extraordinary state of affairs at the moment and that being so, that we just need to press on and govern, frankly, as we want to be remembered – as a government that makes things better for people.

“And clearly as secretary of state for levelling up, my focus is on life chances, and on spreading opportunity. I’m delighted that we’re moving to an unashamedly pro-growth policy.”

Clarke also admitted the government’s economic policy is not “risk-free” as he said that the Tories wanted to go back to the growth rates seen before the financial crash in 2008, when Labour was in power.

At the the mini-budget on Friday, chancellor Kwasi Kwarteng is expected to put into practice many of the tax-cutting promises made by Truss during the Tory leadership campaign.

As well as reversing the hike in national insurance contributions and scrapping a planned increase in corporation tax, which Truss has promised, it has been reported he will cut stamp duty in a further attempt to drive growth.

On plans to lift the cap on bankers’ bonuses while millions feel the squeeze of the cost-of-living crisis, Clarke also said this would help level up “because there would be more revenue for the exchequer”.

Share Button

Despite Disagreements, Biden Tells Truss The UK Is ‘Our Closest Ally In The World’

US president Joe Biden has told Liz Truss the UK is “our closest ally in the world”, despite sharp disagreements between the leaders of the two countries.

Ahead of a one-to-one meeting at the United Nations General Assembly in New York, Biden and the new UK prime ministers spoke to reporters before sitting down to talks centring on the Russian invasion of Ukraine and the energy crisis it has provoked.

Though Biden’s words were reassuring, the president told Truss he is “looking forward to hearing what’s on your mind” about the row over the Northern Ireland Protocol, which prevents a hard border on the island of Ireland, underlining tensions over post-Brexit arrangements.

The prime minister sought to reassure the US president by telling him how she would be explaining how the Good Friday Agreement that brought peace to the island would be upheld.

Biden and Truss were meeting after the president sent a tweet just as the PM was discussing her economic policy, which said he was “sick and tired of trickle-down economics”.

“It has never worked,” he said.

The comments underlined the differences between the two leaders’ stances after Truss made clear her economic agenda had the trickle-down theory – tax cuts for the wealthy and corporations will benefit everyone – at its heart.

The prime minister’s official spokesman said it was “ludicrous” to suggest Biden was criticising UK policy, arguing each country is facing different economic challenges.

The prime minister is pushing ahead with the controversial Northern Ireland Protocol Bill which the EU and other critics say will breach international law by suspending elements of the agreement.

There have also been suggestions she could unilaterally trigger Article 16 of the protocol, to override parts of the agreement brokered as part of the Brexit divorce deal.

In opening marks at the top of their meeting, the US president told Truss: “We are both committed to protecting the Good Friday Agreement of Northern Ireland.

“And I’m looking forward to hearing what’s on your mind.”

He congratulated her on becoming prime minister, adding: “I look forward to working closely with you. You’re our closest ally in the world and there’s a lot we can continue to do together.”

Truss told the president the UK and the US are “steadfast allies” as she thanked him for his support following the death of the Queen.

“Of course I’m looking forward to discussing the Belfast Good Friday Agreement and how we make sure that’s upheld into the future,” she added.

Biden said their “full agenda” for the meeting includes Ukraine’s defence against Vladimir Putin’s invasion, China and preventing Iran from obtaining nuclear weapons.

“We also want to talk about energy, which understandably is of significant consequence to all of Europe and the United Kingdom in particular,” he added.

US national security adviser Jake Sullivan made it clear Biden would discuss the protocol “in some detail” with Truss.

Sullivan told reporters the president “will encourage the UK and the European Union to work out an effective outcome that ensures there is no threat to the fundamental principles of the Good Friday Agreement”.

Share Button

Northern Ireland Receives King Charles III With Grief And Bated Breath

When Queen Elizabeth II visited the Republic of Ireland in 2011, it was a moment of sensitivity and reconciliation, signalling the seismic shift towards longer-lasting peace between Ireland and the UK.

Beginning her speech in Irish, the Queen made every effort to unify two countries with a difficult and complex history.

“With the benefit of historical hindsight, we can all see things which we would wish had been done differently or not at all,” she told guests at a state dinner in Dublin Castle.

However, in this week of her death, as King Charles III ascends the British throne, the relationship between our islands, among those north and south of the Irish border, remains fractious.

As the King arrived at his official residence of Hillsborough Castle near Belfast on Tuesday – his fortieth trip to Northern Ireland – former Irish Taoiseach John Bruton told Sky News, “in many ways, intergovernmental relations between Britain and Ireland are much, much worse now, than they were when the Queen visited in [2011], and that needs to be repaired by the two governments”.

Brexit has maimed relations across the UK, but in particular has dug up dormant hostilities between communities in Northern Ireland.

King Charles arrives not only mourning his mother – a uniting figure within the UK by many accounts – but in the wake of sustained political tensions between the Republic and the UK over its land border and trade impacts arising from Brexit.

Despite this, the response among political parties to the sudden passing of the Queen has been one of particular sympathy and sensitivity – for the most part.

The Union Jack flies at full mast at Hillsborough Castle, Belfast, after the Proclamation of Accession of King Charles III.
The Union Jack flies at full mast at Hillsborough Castle, Belfast, after the Proclamation of Accession of King Charles III.

Brian Lawless – PA Images via Getty Images

On the Queen’s passing, Taoiseach Micheál Martin recalled “the warmth of the welcome she received from the public in Cork during her walkabout” in 2011.

Sinn Féin, which for many years during the Troubles was considered the political wing of the Irish Republican Army, sent “sincere condolences” to the King and party figures plan to attend events during the 10 days of mourning. Party president Mary Lou McDonald said she was “a powerful advocate and ally of those who believe in peace and reconciliation”.

However, the party stayed clear of Hillsborough Castle on Sunday for the proclamation of the King’s accession.

Ms McDonald said she did not attend as the ceremony was “intended for those whose political allegiance is to the British Crown”, and many senior party figures in Northern Ireland attended a rally in Belfast for victims of the Troubles instead.

No surprise there, though a far cry from past hostilities.

A notable outlier in the Republic was the left-wing People Before Profit party, who waited barely a day after the Queen’s passing to call for an end to monarchy.

While that’s not an unpopular sentiment in the Republic, and certainly among Republican communities in Northern Ireland, the reaction outside the political gauntlet has been less celebratory than you might expect – despite the Fenian blood running through our veins.

Monarchists in the Republic are few and far between, not least while we still live in the shadow of 800 years of British oppression – but while some like to joke about the Queen’s death – football hooligans chanting “Lizzy’s in a box” come to mind – her death has undoubtedly caused some upset.

Britain’s influence – and impact – on Ireland goes much further than Brexit ruining the fun for everyone. A cultural fascination with the royals has bled through the border over the years via British media. You’re unlikely to see many a Union Jack south of the border, but there is a palpable sense of loss for the woman who has been an influential figure on the world stage for 70 years.

Are there memes? Yes, Irish Twitter has been full of them and no column has enough lines to explain why the Queen might be reincarnated in the (misreported) birth of Trisha Paytas’s baby.

But underneath this social media frenzy, and the ability of Twitter to throw up jokes on just about any tragedy, is what can only be described as ambivalence towards the monarchy – particularly among young people.

Despite a respect for the duties the Queen carried out, there’s a quiet agnosticism about the institution that leaves many bewildered by the sense of grief washing over Britons in recent days.

But while King Charles ascends at a time of complex feelings about the Crown across the UK, not least among the Black community, he remains fiercely popular among Unionists in Northern Ireland.

Floral tributes left for the Queen outside Hillsborough Castle during the King's visit.
Floral tributes left for the Queen outside Hillsborough Castle during the King’s visit.

Charles McQuillan via Getty Images

The meadow of flowers that greeted his arrival at Hillsborough on Tuesday reflects the devotion many have for the Queen – and their new King. A sea of smiling spectators, many of whom arrived after dawn to get a good spot, shouted “long live the King” as he entered his official residence.

“[King Charles] is a unifying figure among Irish people in the sense he is highly regarded in the Republic of Ireland,” Mr Bruton told Sky News.

“But also, as you can see, very highly regarded in Northern Ireland. Obviously there are divides in Northern Ireland where part of the community… doesn’t have quite the same attitude towards the Union.”

Obviously indeed. The reaction in the Republican community seems more akin to Glaswegians after Margaret Thatcher died. No more need be said.

And while there has been political consensus through the 1998 Good Friday Agreement, there’s hasn’t been a reconciliation between the two communities, Mr Bruton said.

“There is quite a deep level of polarisation in Northern Ireland, but I think the King, personally, can help create an atmosphere in which reconciliation becomes more possible.”

And Charles himself? Speaking at Hillsborough Castle on Tuesday, the King said that with the “shining example” of his mother’s duty to Northern Ireland, and “with God’s help, I take up my new duties resolved to seek the welfare of all the inhabitants of Northern Ireland”.

Ireland waits with bated breath to see if King Charles will indeed foster unity on this island – if, that is, people are listening to him at all.

Conor Capplis is a journalist with the Irish Examiner based in Cork.

Share Button