Hammond demands apology over claims he leaked Brexit dossier

Philip Hammond has written to Boris Johnson to demand an apology from the prime minster for suggestions that he or other ministers in the previous government could have been behind the leaking of a dossier detailing Britain’s plans for a no-deal Brexit.

Blaming former ministers cast questions on their integrity, said the former chancellor, in a letter to Johnson of which he also tweeted a copy on Sunday morning as the prime minister was engaged in the G7 meeting in Biarritz.

Meeting regularly since 1976, the G7 is made up of seven countries: Canada, France, Germany, Italy, Japan, the UK and the US. Between them, the countries represent around half of the world’s GDP, and the group’s main purpose is to provide a forum for discussing world economic stability. The first meetings grew out of a series of summits to deal with the 1973 oil crisis.

G7 summits take place annually, with the host nation rotating between the members. Summits are usually attended by leaders, finance ministers and central bank governors. As well as the seven nations, the meetings are also usually attended by leaders from the European Union, and representatives from international financial institutions including the International Monetary Fund and the World Bank. As well as the high-profile summits, the finance ministers from the G7 also meet on a regular basis several times a year.

Between 1998 and 2014 the grouping was known as the G8, and also included Russia among its members. However, Russia was expelled in 2014 following the annexation of Crimea.

Martin Belam

Hammond referred to media reports that quoted Downing Street sources as briefing that the details of Operation Yellowhammer – the codename for the cross-government civil contingency planning for the possibility of no-deal Brexit – had been deliberately leaked in an attempt to influence discussions with other EU leaders.

The clear implication was that a minister in the previous government had retained and then leaked, a copy of this document, added Hammond.

He said it had become apparent that the leaked document was, in fact, dated August 2019 and could not, therefore, have been available to any former minister not serving in the current administration.

At 11pm UK time on 31 October the UK would, by default, become a “third country” in terms of relations with the EU, with no post-Brexit plan in place, and no transition period. The UK would no longer be paying into the EU budget, nor would it hand over the £39bn divorce payment.

The UK would drop out of countless arrangements, pacts and treaties, covering everything from tariffs to the movement of people, foodstuffs, other goods and data, to numerous specific deals on things such as aviation, and policing and security. Without an overall withdrawal agreement each element would need to be agreed. In the immediate aftermath, without a deal the UK would trade with the EU on the default terms of the World Trade Organization (WTO), including tariffs on agricultural goods.

The UK government has already indicated that it will set low or no tariffs on goods coming into the country. This would lower the price of imports – making it harder for British manufacturers to compete with foreign goods. If the UK sets the tariffs to zero on goods coming in from the EU, under WTO ‘most favoured nation’ rules it must also offer the same zero tariffs to other countries.

WTO rules only cover goods – they do not apply to financial services, a significant part of the UK’s economy. Trading under WTO rules will also require border checks, which could cause delays at ports, and a severe challenge to the peace process in Ireland without alternative arrangements in place to avoid a hard border.

Some no-deal supporters have claimed that the UK can use article 24 of the General Agreement on Tariffs and Trade (Gatt) to force the EU to accept a period of up to ten years where there are no tariffs while a free trade agreement (FTA) is negotiated. However, the UK cannot invoke article 24 unilaterally – the EU would have to agree to it. In previous cases where the article has been used, the two sides had a deal in place, and it has never been used to replicate something of the scale and complexity of the EU and the UK’s trading relationship.

The director general of the WTO, Roberto Azevêdo, has told Prospect magazine that "in simple factual terms in this scenario, you could expect to see the application of tariffs between the UK and EU where currently there are none".

Until some agreements are in place, a no-deal scenario will place extra overheads on UK businesses – eg the current government advice is that all drivers, including lorries and commercial vehicles, will require extra documentation to be able to drive in Europe after 31 October if there is no deal. Those arguing for a ‘managed’ no deal envisage that a range of smaller, sector-by-sector, bilateral agreements could be quickly put into place as mutual self-interest between the UK and EU to avoid introducing or to rapidly remove this kind of bureaucracy.

Martin Belam

“Accordingly, I am writing on behalf of all former ministers in the last administration to ask you to withdraw these allegations which question our integrity, acknowledge that no former minister could have leaked this document, and apologise for the misleading briefing from No 10,” Hammond said.

Leaked details of Operation Yellowhammer predicted that the UK would face a three-month meltdown at its ports, a hard Irish border and shortages of food and medicine if it left the EU without a deal.

The documents predict severe extended delays to medicine supplies and shortages of some fresh foods combined with price rises as a likely scenario if the UK leaves without a withdrawal agreement, which is due to happen on 31 October.

The letter marks an escalation in the war of words between No 10 and Hammond, who is leading a group of 20 Conservatives making clear their opposition to crashing out on 31 October, over the Yellowhammer dossier.

(September 3, 2019)

The date on which the Commons is likely to return from summer recess. It is the first date that MPs could hold a vote of no confidence in the new prime minister. However, rebel MPs would need to be confident they could form an alternative government, as many wish to avoid triggering an election.

(September 12, 2019)

Mps would be due to go on conference recess - but could continue to sit if a no-confidence vote had been lost.

(September 17, 2019)

Assuming the government has lost a confidence vote, this would be the deadline for Labour or any unity government to win a confidence vote. If not achieved, Boris Johnson would call an election. Parliament could then be prorogued.

(September 22, 2019)

The Labour and Conservative party conferences are due to be held on consecutive weeks.

(September 27, 2019)

Parliament would be dissolved if an election were to be held on 1 November.

(October 17, 2019)

EU leaders meet for the final European council summit before the UK's extension is due to expire. Rebel Tories and remainers may choose to call a no-confidence vote if an extension is not offered as a way of preventing no deal.

(October 31, 2019)

The six-month article 50 extension will expire.

(November 1, 2019)

The UK could hold a general election.

Despite the document, leaked to the Sunday Times, being dated to earlier this month when Johnson was already in post, a senior No 10 source had told reporters last weekend: “This document is from when ministers were blocking what needed to be done to get ready to leave and the funds were not available.”

“It has been deliberately leaked by a former minister in an attempt to influence discussions with EU leaders.”