The prime minister Theresa May unveiled more detail about the government’s Brexit plans in a speech at Lancaster House in London on 17 January (see http://bit.ly/2k0EmOB).
The prime minister Theresa May unveiled more detail about the government’s Brexit plans in a speech at Lancaster House in London on 17 January (see http://bit.ly/2k0EmOB). May confirmed that the UK would not try to remain a member of the European single market. The government will seek a bespoke customs agreement with the EU, rather than remain bound by the terms of the existing customs union. The 12 priorities set out in the speech are:
certainty;
control of laws;
strengthen the Union of the UK;
maintain common travel area with Ireland;
control immigration;
guarantee rights of EU and British nationals;
protect workers’ rights;
free trade with European markets;
new trade agreements;
science and innovation;
fight against crime and terrorism; and
smooth, orderly Brexit.
On the approach to new trade agreements outside the EU, May said: ‘I know my emphasis on striking trade agreements with countries outside Europe has led to questions about whether Britain seeks to remain a member of the EU’s customs union. And it is true that full customs union membership prevents us from negotiating our own comprehensive trade deals.
‘Now, I want Britain to be able to negotiate its own trade agreements. But I also want tariff-free trade with Europe and cross-border trade there to be as frictionless as possible. That means I do not want Britain to be part of the common commercial policy and I do not want us to be bound by the common external tariff. These are the elements of the customs union that prevent us from striking our own comprehensive trade agreements with other countries.
‘But I do want us to have a customs agreement with the EU. Whether that means we must reach a completely new customs agreement, become an associate member of the customs union in some way, or remain a signatory to some elements of it, I hold no preconceived position. I have an open mind on how we do it.’
On the prospect of no agreement being struck, the prime minister said: ‘We would have the freedom to set the competitive tax rates and embrace the policies that would attract the world’s best companies and biggest investors to Britain. And if we were excluded from accessing the single market, we would be free to change the basis of Britain’s economic model.’
In an interview with the German newspaper Welt am Sonntag on 15 January, chancellor of the exchequer Philip Hammond was asked whether the government’s stated aim of introducing the lowest corporate tax rate among industrialised countries means the UK intends to become the future ‘tax haven of Europe’. Hammond replied that he hoped the UK would remain ‘in the mainstream of European economic and social thinking’. However, he added: ‘If we are forced to be something different, then we will have to become something different.’
Asked what he meant by ‘forced’, the chancellor explained: ‘If we have no access to the European market, if we are closed off, if Britain were to leave the EU without an agreement on market access.’ In such circumstances, he said, ‘we could be forced to change our economic model and we will have to change our model to regain competitiveness. And you can be sure we will do whatever we have to do.’
On the prospects for key industries such as cars, pharmaceuticals and financial services, Hammond nevertheless expressed optimism for ‘an agreement that gives reciprocal access to each other’s markets’.
The Scottish government is to present a paper this week at the joint ministerial committee on European negotiations, with proposals endorsed by a vote in the Scottish Parliament aimed at securing Scotland’s continued place in the single market within a UK context.
The prime minister Theresa May unveiled more detail about the government’s Brexit plans in a speech at Lancaster House in London on 17 January (see http://bit.ly/2k0EmOB).
The prime minister Theresa May unveiled more detail about the government’s Brexit plans in a speech at Lancaster House in London on 17 January (see http://bit.ly/2k0EmOB). May confirmed that the UK would not try to remain a member of the European single market. The government will seek a bespoke customs agreement with the EU, rather than remain bound by the terms of the existing customs union. The 12 priorities set out in the speech are:
certainty;
control of laws;
strengthen the Union of the UK;
maintain common travel area with Ireland;
control immigration;
guarantee rights of EU and British nationals;
protect workers’ rights;
free trade with European markets;
new trade agreements;
science and innovation;
fight against crime and terrorism; and
smooth, orderly Brexit.
On the approach to new trade agreements outside the EU, May said: ‘I know my emphasis on striking trade agreements with countries outside Europe has led to questions about whether Britain seeks to remain a member of the EU’s customs union. And it is true that full customs union membership prevents us from negotiating our own comprehensive trade deals.
‘Now, I want Britain to be able to negotiate its own trade agreements. But I also want tariff-free trade with Europe and cross-border trade there to be as frictionless as possible. That means I do not want Britain to be part of the common commercial policy and I do not want us to be bound by the common external tariff. These are the elements of the customs union that prevent us from striking our own comprehensive trade agreements with other countries.
‘But I do want us to have a customs agreement with the EU. Whether that means we must reach a completely new customs agreement, become an associate member of the customs union in some way, or remain a signatory to some elements of it, I hold no preconceived position. I have an open mind on how we do it.’
On the prospect of no agreement being struck, the prime minister said: ‘We would have the freedom to set the competitive tax rates and embrace the policies that would attract the world’s best companies and biggest investors to Britain. And if we were excluded from accessing the single market, we would be free to change the basis of Britain’s economic model.’
In an interview with the German newspaper Welt am Sonntag on 15 January, chancellor of the exchequer Philip Hammond was asked whether the government’s stated aim of introducing the lowest corporate tax rate among industrialised countries means the UK intends to become the future ‘tax haven of Europe’. Hammond replied that he hoped the UK would remain ‘in the mainstream of European economic and social thinking’. However, he added: ‘If we are forced to be something different, then we will have to become something different.’
Asked what he meant by ‘forced’, the chancellor explained: ‘If we have no access to the European market, if we are closed off, if Britain were to leave the EU without an agreement on market access.’ In such circumstances, he said, ‘we could be forced to change our economic model and we will have to change our model to regain competitiveness. And you can be sure we will do whatever we have to do.’
On the prospects for key industries such as cars, pharmaceuticals and financial services, Hammond nevertheless expressed optimism for ‘an agreement that gives reciprocal access to each other’s markets’.
The Scottish government is to present a paper this week at the joint ministerial committee on European negotiations, with proposals endorsed by a vote in the Scottish Parliament aimed at securing Scotland’s continued place in the single market within a UK context.
