Britain's chancellor of the exchequer has sought to reassure business that the "turbulence" caused by Brexit will be contained, after the pound fell to a new, three-year low.
Addressing the Conservative party conference in Birmingham, Philip Hammond acknowledged that business was anxious about the future, and promised to honour all EU funding for British business agreed before Brexit.
Sterling’s tumble followed prime minister Theresa May’s announcement she would trigger formal EU withdrawal talks before the end of March and her clear signal that she would seek a “hard Brexit”.
Sterling hovered near 31-year lows yesterday, falling 0.9 per cent against the US dollar to stand at $1.28 in afternoon trade. Against the euro, sterling fell to a three-year low, down by 0.7 per cent to €1.14.
Mr Hammond’s tone was softer than Ms May’s, insisting Britain would not “turn its back” on Europe after Brexit.
“Throughout the negotiating process, we are ready to take whatever steps are necessary to protect this economy from turbulence. And when the process is over, we are ready to provide support to British businesses as they adjust to life outside the EU,” he said.
Sovereignty
“We are leaving the European Union. But it is equally clear to me that the British people did not vote on June 23rd to become poorer, or less secure.
“So our task is clear: repatriate our sovereignty; control our borders; and seize the opportunities that the wider world has to offer . . . while protecting our economy, our jobs and our living standards.”
Ms May’s speech to her party conference on Sunday, when she made clear that Britain would prioritise controlling immigration over remaining in the European single market, has won praise from many Conservatives who backed Brexit.
David Jones, a junior minister at the Department for Exiting the EU, confirmed it was now unlikely Britain would remain in the single market.
‘Best possible terms’
“Access to the single market is something almost every country in the world has got. The question is the basis upon which we have that access,” he said. “I think that what is fairly clear from the prime minister’s speech is that membership of the single market is probably unlikely, but access to it is something that we want to achieve on the best possible terms.”
Mr Jones said, however, that Britain’s negotiating position was developing and would continue to develop after the triggering of formal talks under article 50 of the Lisbon Treaty.
The European Commission said yesterday it would “work constructively” with Britain once formal exit negotiations begin next year, but there would be no talks until the formal process started.
Northern Ireland secretary James Brokenshire was expected to refer to the Border between the Republic and Northern Ireland in a late evening speech at the Conservative Party conference:
“We will work to ensure that Northern Ireland’s unique interests are protected and advanced. That’s particularly the case when it comes to the land border with the Republic of Ireland and the Common Travel Area which has served the UK and Ireland well for many decades.”
