Government ‘assuming’ no deal – as Philip Hammond ‘holds secret talks’

The government is “working on the assumption” the UK will leave the EU without a deal, Cabinet Office minister Michael Gove has revealed.

Mr Gove, who has been tasked by new PM Boris Johnson with boosting preparations for a no-deal Brexit, wrote in The Sunday Times that this scenario is now a “very real prospect”.

He said he was hopeful the EU would be willing to renegotiate the withdrawal agreement it reached with Theresa May, “but we must operate on the assumption that they will not”.

It comes as French MEP Nathalie Loiseau told Sophy Ridge On Sunday there was “nothing in between” Mrs May’s withdrawal agreement and no-deal.

Mr Johnson has declared he will not accept the controversial Irish backstop contained within the current agreement – but Ms Loiseau said the EU would not ratify an agreement without it, adding: “You have changed your prime minister but we have not changed our minds.

“We do want to avoid a no-deal, and the agreement is on the table. Why create a crisis when there is a way out?

“The only way out is the agreement, or remaining in the EU. It is your choice to make, not ours.

“The agreement is a compromise, there are many concessions in it. We are protecting our citizens, peace on the island of Ireland. The agreement is not the devil, it’s a reasonable compromise to move forward.”

Mr Johnson has pledged to take the UK out of the European Union on 31 October, “no ifs, no buts” and chief secretary to the treasury Rishi Sunak said it was “right” that Britain prepared for a no-deal exit.

He told Sophy Ridge On Sunday: “Well it’s absolutely right that we prepare for it. We must be able to leave on our own terms. We can’t be subject to the decisions of other people.

“We would be happy to enter into renegotiation but we want to remove this undemocratic backstop from the existing agreement. But if the EU is not willing to talk about that then it is right that we prepare properly with conviction, and importantly with the financial resources that the treasury will now supply properly for all departments to make those preparations for our coming departure.”

But former chancellor Philip Hammond, who quit his role before Mr Johnson became prime minister, has reportedly held secret talks with Labour about how to stop a no-deal Brexit.

Mr Hammond is against the UK leaving the EU without a deal that would smooth over trading arrangements. He fears an economic shock and met shadow Brexit secretary Sir Keir Starmer shortly after he resigned from his Treasury post, The Observer said.

The newspaper said the pair agreed to work with other senior politicians including former Conservative minister Oliver Letwin to thrash out how best to use parliamentary votes to scupper a no-deal outcome.

Better news for Mr Johnson came by way of three polls suggesting the Conservatives’ popularity was up since he took office on Wednesday.

A YouGov poll for The Sunday Times newspaper put the Tories on 31%, up six points on a previous poll, while Jeremy Corbyn’s Labour Party was on 21%, a rise of two points.

It was the Conservatives’ biggest lead over the opposition in five months and it was the first time their support has risen above 30% since April, the paper claimed.

The Liberal Democrats were down three points on 20% and the new Brexit Party, led by Nigel Farage, was down four points on 13%, half its peak level in May.

Meanwhile, a survey by Deltapoll for The Mail On Sunday showed support for the Tories was at 30%, five points ahead of Labour at 25%, with the Lib Dems on 18% and the Brexit Party on 14%.

But if Labour dropped Mr Corbyn as its leader, the poll said the party would go into the lead at 34%, with the Tories on 28%, the Brexit Party on 14% and the Lib Dems on 13%.

A third poll by Comres for the Sunday Express had the Conservatives in the lead with 28%, up three points and only one percentage point ahead of Labour.

While preferred as a leader to Mr Corbyn, most voters think Mr Johnson will be a bad prime minister, ComRes said.

“As Boris Johnson begins his premiership we have seen an anticipated bump in Conservative support, generally at the expense of the Brexit Party,” said head of politics at Comres, Chris Hopkins.

“However, while the public agree that he should be given the necessary time to deliver Brexit, a majority are sceptical as to how good he may be as prime minister.”

On Saturday, the PM pledged funding for a major new rail link between Manchester and Leeds, and promised action on housing and crime, despite insisting he was not preparing for a snap autumn election.

(c) Sky News 2019: Government ‘assuming’ no deal – as Philip Hammond ‘holds secret talks’