Johnson Urges Hunt to Commit to Oct. 31 Deadline: Brexit Update
He wants to negotiate a new divorce deal with the EU -- without the controversial Irish backstop -- and to get it done by Oct. 31.
(Bloomberg) -- Boris Johnson has put some flesh on the bones of his Brexit plan -- setting out a plan A, B and C for taking Britain out of the European Union on Oct. 31. Plan A and B have already been rejected by the bloc. Plan C is no-deal, which members of his own party are plotting to prevent.
Key Developments:
- Johnson says plan A is to get a “new” withdrawal agreement that strips out the Irish backstop. The EU has rejected this.
- Plan B is to get a standstill agreement -- using an arcane bit of trade regulation known as Article 24 of the GATT -- so trade continues unhindered. The EU has rejected this, and the WTO says that article isn’t applicable in this case.
- Johnson says Oct. 31 is the final exit date. "Do or die. Come what may."
- New prime minister will be announced on July 23
- Auto industry issues new warning about no-deal
Hunt: Must Show EU That MPs Will Support a Deal (6 p.m.)
In an interview with BBC News, Jeremy Hunt said the key to his Brexit strategy was to show the European Union he can secure the backing of British lawmakers.
“One of the reasons that they stopped talking to us before was because they didn’t think that the British government would deliver the British Parliament,” Hunt said. “That’s what we need to change.”
Hunt said that meant putting forward a different deal to the one Theresa May negotiated with Brussels -- even though the EU has refused to renegotiate it. The Irish backstop must be changed, he said, adding technology must play a key part in preventing the emergence of a hard border after Brexit.
He also rejected Johnson’s demand (see 4:30 p.m.) that he commit to leaving the EU on Oct. 31. “That 31st of October -- come hell or high water -- is a fake deadline, because it’s more likely to trip us into a general election before we’ve delivered Brexit, and that would hand the keys to Jeremy Corbyn and then we’d have no Brexit at all.” He said, though, that he would be prepared to leave the bloc without an agreement.
Hunt to Johnson: Join Debate for Answers (4:50 p.m.)
Jeremy Hunt wasted no time in replying to the letter from Boris Johnson (see 4:30 p.m.), telling his rival there’s “no need for snail-mail.”
“Why not turn up to Sky tonight and I’ll give you full and frank answers?” Hunt said on Twitter, referring to the televised debate on Sky News that was canceled on Tuesday night because Johnson declined to take part.
Johnson Calls on Hunt to Commit to Oct. 31 (4:30 p.m.)
In a letter to his leadership rival posted on Twitter, Boris Johnson called on Jeremy Hunt to commit to taking the U.K. out of the European Union on Oct. 31, with or without a deal. “If you will not, voters deserve to know what alternative deadline you will set,” Johnson wrote.
The front-runner to become prime minister also said he “will not countenance holding another referendum” on Brexit -- and urged Hunt to “agree with me on that too.”
Hunt has already said he is open to a further extension if it meant securing a withdrawal agreement with the bloc. The question for Johnson is what he would do if Parliament prevents him from leaving the bloc without a deal, having already rejected a second referendum. He has said he doesn’t want to hold a general election, though unlike Hunt, he hasn’t ruled one out completely.
Government Expects New PM to Take Over July 24 (4 p.m.)
The government expects the transition to the new premier to take place after Prime Minister’s Questions on July 24, Theresa May’s spokesman, James Slack, told reporters in London. The Conservative Party will announce the winner of its leadership race a day earlier.
The timing is potentially significant because unless there’s a major development -- such as the opposition Labour Party calling a no-confidence vote in the government -- it’s likely that the incoming prime minister will not have to make a statement to Parliament before it begins its summer recess on July 25. Members of Parliament do not return until Sept. 3.
Johnson’s Brexit Plan Takes Shape (11:40 a.m.)
Boris Johnson has added some detail to his Brexit plans in a series of interviews. He wants to negotiate a new divorce deal with the EU -- without the controversial Irish backstop -- and to get it done by Oct. 31.
If that’s not possible -- as the EU has repeatedly said it isn’t -- then Johnson would seek a standstill agreement with the EU, on the basis of Article 24 of the GATT. He told LBC earlier it would be “very bizarre” if the bloc imposed tariffs on U.K. goods, and said that a standstill agreement was “the way forward.”
The EU has already said that it won’t contemplate mini agreements to soften the blow of a hard exit, or what some call a managed no-deal. Its position is clear -- it’s either the divorce accord, including the Irish backstop and the financial settlement, or the chaos of no-deal. The World Trade Organization has also said that Article 24 wouldn’t work.
If the first two plans don’t work, then Johnson said the country must prepare for a hard split -- his plan C. But a majority of members of Parliament oppose crashing out without an agreement, and members of Johnson’s party are figuring out ways to stop the next prime minister pursuing such a policy. Johnson told the BBC on night that despite this, he thought he could push no-deal through the House of Commons.
He promised the U.K. would leave on Oct. 31. "Do or die. Come what may," he told Talk Radio.
That message will play well with Conservative activists, who will pick the next leader. A YouGov poll showed 59% of members think the new prime minister should be prepared to leave without a deal in October if negotiations fail, while 24% think he shouldn’t bother with more talks but head straight for a no-deal split.
When Was the Photo Taken? (11:20 a.m.)
Johnson has refused to engage with the question of how photos of him with his girlfriend Carrie Symonds, apparently showing them reconciled after their row in the early hours of Friday morning, were released to the press.
A spokesman said that the photos was nothing to do with the campaign, but refused to discuss their provenance. The Daily Mail, which first reported them on Monday, said they had been taken on Sunday, and cited a friend of the couple. But Johnson was challenged on LBC about whether the pictures were as recent as that – his haircut seems to be different from some angles in the photos.
“It’s not a state secret, it just happens to not be something I want to get into,’’ Johnson told LBC. “Why should I?’’
Johnson Says U.K. Needs New Brexit Deal (11:15 a.m.)
Johnson said he doesn’t just want to tweak the Brexit deal but wants a new agreement.
“It’s got to be a change to the Withdrawal Agreement. I mean, more than a change. It’s got to be a new Withdrawal Agreement,” he told Talk Radio.
He ruled out delaying Brexit again beyond Oct. 31, and raised the prospect of a scaled down agreement with the EU as a way of avoiding disruption to trade if a full divorce deal can’t be reached.
Johnson Denies He’s Being Advised by Bannon (10:25 a.m.)
In his interview with LBC, Johnson denied reports that he’s being advised by Steve Bannon, calling the speculation “complete codswallop.” The pair met when Johnson was foreign secretary and Bannon was in the White House, and exchanged texts when Johnson declined a meeting with Bannon during President Donald Trump’s U.K. visit last year, he said. Critics are trying to create an “alt-right’ conspiracy, Johnson said.
“Anybody who looks at my record knows that I am a progressive, modern Conservative, that I believe passionately in improving the lot of everybody in society,’ Johnson said.
Johnson Hopes EU Won’t Impose Tariffs in No-Deal (9:55 a.m.)
Boris Johnson revised his earlier comments that an arcane bit of trade law could provide a solution in the event of a no-deal Brexit, but said he’s still hopeful that in the event of a hard exit some kind of agreement with the bloc could be reached to ease the blow.
Johnson had been criticized for saying that article 24 of the GATT provided a way of keeping trade undisrupted in the event of no-deal. Bank of England Governor Mark Carney was among those who disputed it.
Johnson told LBC radio that while Carney was right, the measure still offered a “hopeful prospect” and was “the way forward.” He said there was scope for the U.K. and EU to come to an agreement in the event of no-deal.
“It would be very bizarre if the EU should decide on their own to impose tariffs on goods coming from the U.K.,” he said.
The EU has repeatedly said that it won’t engage in mini-deals if the withdrawal agreement isn’t ratified. That means tariffs would be imposed, as well as border checks.
Johnson Would Guarantee EU Citizens’ Rights (9:50 a.m.)
Johnson said he would guarantee the rights of EU citizens in U.K. law “immediately” if he became prime minister.
In an interview with LBC, he also reiterated a pledge to take the U.K. out of the bloc on Oct. 31.
Hard Brexit Would Damage U.K. Auto Sector: Lobby Group
A so-called hard Brexit leading to border friction and production delays could cost the U.K.’s auto industry 50,000 pounds ($64,000) a minute, according to report by the Society of Motor Manufacturers and Traders.
The SMMT said the end of frictionless trade could bring crippling disruption to the industry’s just-in-time operating model, and that securing a Brexit deal must be the next prime minister’s top priority. The right deal, combined with an auto-friendly trade strategy, could deliver a 20 billion-pound boost to the economy, it said.
Rudd: Johnson’s Brexit Plan Lacks Detail (9 a.m.)
During her media round in support of leadership candidate Jeremy Hunt, Work and Pensions Secretary Amber Rudd said that while she appreciates Boris Johnson’s “enthusiasm and his confident positivity,” he was still being vague on his plans for Brexit.
“I think Boris needs to go further about what he is doing,” she told the BBC on Tuesday. “Let’s not pretend this is simple,” she said of the negotiations with the European Union. While Johnson might see himself as an “absolutist” on leaving the bloc on Oct. 31 -- without necessarily knowing what comes next -- Rudd said Hunt has the “personality” to get a “better hearing” from the bloc to forge a compromise.
IFS Puts Price on Johnson Tax Cuts (Earlier)
Boris Johnson’s proposal to raise the thresholds for income tax and social security contributions would cost 20 billion pounds a year, according to the Institute for Fiscal Studies. The measures would mainly benefit higher earners, according to its report.
Communities Secretary James Brokenshire, who backs Johnson, told Sky News on Tuesday that the Treasury has “indicated there is fiscal headroom of around 26 billion pounds” for tax cuts, though he also said the IFS analysis “is quite premature because Boris hasn’t set out his tax plans yet.”
Earlier:
To contact the reporters on this story: Kitty Donaldson in London at kdonaldson1@bloomberg.net;Robert Hutton in London at rhutton1@bloomberg.net;Jessica Shankleman in London at jshankleman@bloomberg.net
To contact the editors responsible for this story: Emma Ross-Thomas at erossthomas@bloomberg.net, Stuart Biggs, Thomas Penny
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