Gulf between Theresa May and Philip Hammond widens at G20
2 min read
The working relationship between Theresa May and Philip Hammond has been further strained by their different approaches to Britain’s trade policy post-Brexit, it has emerged.
Philip Hammond has said it would be “madness” to seek anything other than the closest possible relationship with the European Union.
The Chancellor, who joined the Prime Minister for the G20 summit, suggested that leaving the EU was a “political argument” and stressed that the EU “will remain our largest trading partner”.
However, Mr Hammond’s outlook directly contradicted the outlook taken by his boss, the Prime Minister.
Theresa May has spent the G20 courting the good favour of America, China, and Japan via meetings with Donald Trump and President Xi Jinping of China and President Shinzo Abe of Japan.
Mr Hammond has openly prioritised trade with the European Union and pointed to the wishes of constituency as motivation for his decision.
He said they want: “A Brexit that is focused on protecting jobs, business, prosperity, trade, a Brexit that recovers sovereignty for the UK but also recognizes the reality that… the EU will remain our largest trading partner and our nearest neighbours, and that it would be madness not to seek to have the closest possible arrangement with them going forward.
“To trade with them, to co-operate with them, but doing it as a sovereign country.”
He went on: “The problem is this. There's an economic argument and a political argument. On the economic argument it's very clear that a very large proportion of our exports are going into the EU.
“But there's also a political dimension. The EU is on a path towards deep political integration. That is not something that the British people are ever going to feel comfortable with.
“Perhaps it's better that we just accept that the right way for us to work is very close economic collaboration, security collaboration, collaboration in science and technology, higher education, in all the areas where we can sensibly collaborate together but outside of the political union.”
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