- Chancellor Philip Hammond has stated that a no deal Brexit will cost the UK 90 Billion pounds
- He has urged MPs to vote against such a notion
While most of UK politics is concerned with who will emerge winner in the current race for Prime Minister, there is also concern about whether or not the UK can meet the incoming Brexit deadline given as a shift in power is about to take place. The biggest fear is that the deadline will come and the UK will be forced to opt for a no deal Brexit.
One person, however, who have made their stand clear in the matter is Chancellor Philip Hammond who has stated on July 2, 2019, that he is prepared to vote against a no-deal Brexit in parliament as he believes it will cost the UK up to £90 billion.
No Deal
Hammond said in a Parliament hearing that leaving the EU without a legal agreement would be the wrong policy and will cause huge stress to public finances.
As such, a no-deal Brexit must be avoided at all costs but Hammond has said that it is unlikely he will be in his job by next month after Theresa May hands over to her successor and thus, it is up to the members of Parliament to make sure a no-deal Brexit doesn’t happen.
Hammond was asked by shadow chancellor John McDowell at treasury questions if he would back Labor in voting against such a decision and opposing any effort by the new prime minister to make sure the no deal Brexit went through. This is a significant increase as both Boris Johnson and Jeremy Hunt, the two front-runners in the race, have stated that they will be willing to accept a no deal Brexit. Hammond, however, is not having any of it and has made his position clear. He said:
“I do agree with him, it would be wrong for a British government to pursue no deal as a policy and I believe it will be for the House of Commons, of which I will continue proudly to be a member, to ensure that doesn’t happen.”
He has also taken aim at both leading candidates who have stated that they would increase government spending and cut taxes in the event they are chosen as prime minister.
Hammond’s argument is that there is no pot of money in the Treasury for extra spending or tax cuts, especially if a no-deal Brexit takes place and that the £90 billion that the UK might lose as a result of a no deal Brexit have to be kept in mind when making these campaign promises.
