Brexit Bulletin: Get in Line

(Bloomberg) -- Today in Brexit: The Tory leadership race starts for real, and Boris Johnson is gaining momentum.

What’s Happening?

The list of candidates vying to be Britain’s next prime minister will be finalized today following a lively weekend of news, from hard lines on Brexit to some lines they’d rather forget.

Boris Johnson, the front-runner to succeed Prime Minister Theresa May, took a tough stance on Brexit in a Sunday Times interview. He said he would leave the bloc with or without a deal in October if he was in charge, reviving the prospect of no-deal for pound traders. He also said he would scrap the Irish border backstop and withhold £39 billion ($50 billion) owed to the European Union until an agreement is reached.

As Johnson saw his stock rise with the more hardline Brexiteers lining up to back him, Michael Gove’s was fading following an unfortunately timed confession. The current environment secretary and former justice secretary admitted to taking cocaine decades ago, prompting accusations of hypocrisy. In an interview with BBC’s Andrew Marr, he said it was “a mistake which I profoundly regret.” On Brexit, he talked of his plans to renegotiate a deal with the EU.

Foreign Secretary Jeremy Hunt warned against the dangers of a general election that could see a Labour Party victory and said the U.K. must exit the EU with a deal. He won the support of Work and Pensions Secretary Amber Rudd, while Home Secretary Sajid Javid got the backing of Scottish Conservative leader Ruth Davidson.

The nominations for leadership will close at 5 p.m. U.K. time today, and candidates need the backing of eight lawmakers to advance to the next stage.

Today’s Must-Reads

• Drug use is hardly the main issue in the Tory leadership contest — it’s the addiction to a hard, “Class-A Brexit” that is the problem, Matthew D’Ancona writes in the Guardian.
• With several candidates proposing a more robust version of Theresa May’s failed approach, the Tories badly need an honest debate on Brexit, writes the Financial Times’ editorial board.
• ICYMI: Here’s our rundown of where the candidates stand on Brexit

Tory Leadership Latest

Launch Time | Candidates launching their campaigns today include former Brexit Secretary Dominic Raab, who will announce plans for the U.K. to take the lead in energy, environmental and climate policy and Health Secretary Matt Hancock, who will pledge to make the next decade “the soaring twenties.’’ Gove will say he is the right man for a time that “requires a serious leader.”

Backing Hunt | Work and Pensions Secretary Amber Rudd’s tweet announcing her backing for Jeremy Hunt in the race was also seen as a dig at frontrunner Johnson, as she said we need a “respected statesman’’ rather than “more bluster.”

Cutting Taxes | The Tory leadership hopefuls have also been laying out some tax policy, with Johnson promising to cut income tax for people earning over 50,000 pounds a year while Michael Gove said he would scrap VAT and replace it with something simpler. 

Brexit in Brief

Manufacturing Slump | U.K. manufacturing slumped in April as the boost from Brexit stockpiling evaporated and car factories halted work, boding ill for the economy in the second quarter, figures are expected to show today.

Trade Progress | The U.K. and South Korea will seek to maintain existing trade arrangements post-Brexit. The countries will adopt an existing free-trade agreement between South Korea and EU even in case of Brexit, Seoul’s Ministry of Trade, Industry and Energy said this morning.

Unicorn City | London continues to appeal to technology firms whatever is happening with Brexit: Startups in the sector in London attracted a record £2.56 billion of venture capital investment in 2019 through May 31, according to data published by London & Partners, the city’s official lobbying arm.

Want to keep up with Brexit?

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To contact the editor responsible for this story: Adam Blenford at ablenford@bloomberg.net, Leila Taha

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