Britain will still pay the Brexit divorce bill even if we crash out of the EU without a trade deal.
Theresa May is understood to have offered a settlement of around £50 billion to Brussels negotiators in a bid to move the negotiations on to trade talks.
But today Chancellor Philip Hammond said the UK will still be on the hook for financial obligations to the EU whatever the outcome of the negotiations.
And he revealed Theresa May’s Cabinet have not yet had a full discussion about what we want Britain’s end state position to be after we leave the EU.
Asked if our paying the bill was contingent on getting a good deal, Hammond told the Treasury Select Committee he found it inconceivable that Britain would walk away from its obligations.
He said Nothing is agreed until everything is agreed in this negotiation. But I find it inconceivable that we as a nation would be walking away from an obligation that we recognised as an obligation.
That’s just not a credible scenario. That’s not the kind of country we are and frankly it would not make us a credible partner for future international agreements.
The Chancellor also revealed that the Cabinet has not yet had a full discussion of what should be the Government’s preferred end state position for the UK after Brexit.
Mr Hammond told the Commons Treasury Committee The Cabinet has had general discussions about our Brexit negotiations, but we haven’t had a specific mandating of an end-state position.
That is something that will be done first in the sub-committee constituted to deal with this issue, and logically that will happen once we have confirmation that we have reached ‘sufficient progress’ and are going to begin the phase two process with the European Union.
We are not yet at that stage and it would have been premature to have that discussion before we reach that stage.
News Source MirrorNews