Business chiefs last night rounded on Philip Hammond for being too negative about Brexit – as a former Chancellor called for him to be sacked.
A string of senior business figures said they were ready to embrace the opportunities of Brexit and urged ‘gloomy’ Mr Hammond to be more positive.
In a further blow to the embattled Chancellor, one of his predecessors, Lord Lawson, said he should be fired.
Lord Lawson, who was Chancellor under Margaret Thatcher, accused Mr Hammond of being ‘grossly negligent’, adding: ‘He is unhelpful. He may not intend it, but in practice what he is doing is very close to sabotage.’
Business chiefs last night rounded on Philip Hammond for being too negative about Brexit – as a former Chancellor called for him to be sacked
Mr Hammond has come under fire for a string of gloomy pronouncements on Brexit. On Wednesday, he told MPs that the prospect of leaving the EU had created a ‘cloud of uncertainty’ that was damaging the economy.
To the fury of Downing Street, Mr Hammond also undermined Theresa May’s strategy on Brexit by insisting he would wait until the ‘very last moment’ before releasing money to prepare Britain for the possibility of leaving the EU without a deal. It came as:
- EU negotiator Michel Barnier raised the stakes by criticising the Government’s ‘very disturbing’ refusal to pay a £90 billion ‘divorce’ bill and warning that talks were ‘deadlocked’;
- The FTSE 100 index hit a record high – 19 per cent above its pre-referendum level;
- George Osborne threw in the towel, saying he did not think Brexit can be stopped;
- Ministers were forced to delay the crucial EU Withdrawal Bill in the Commons while they consider 132 pages of amendments tabled by pro-Remain MPs;
- Jeremy Corbyn said he would still vote to stay in the EU, but dashed the hopes of Remainers in his party by declaring: ‘There isn’t going to be another referendum.’
Mr Hammond has tried to position himself as a Brexit ‘realist’ who is championing the cause of business during Cabinet discussions. But business chiefs say his relentless pessimism risks taking down the economy.
To the fury of Downing Street, Mr Hammond also undermined Theresa May’s (pictured at the Royal Liverpool Hospital) strategy on Brexit
Marcus Dolman, joint chairman of the British Exporters’ Association, accused Mr Hammond of being too ‘negative’.
Mr Dolman, a senior executive at Rolls-Royce, urged the Chancellor to focus on the positives and support the Government in striking a good free trade deal.
‘He’s probably talking a bit negatively. We need to be positive about this,’ he told the Mail. ‘Businesses are resilient. They will be planning for all eventualities. If there is a hard Brexit then businesses will find a way around it.’
Tim Martin, boss of pub chain JD Wetherspoon, said: ‘Philip Hammond is much too gloomy. He’s acting like a blocker in these negotiations.’ Gerard Lyons, chief economist at Netwealth, said: ‘The Treasury needs to move on. The Budget in November needs to be about boosting investment and infrastructure, and presenting a positive vision of the future.’
Others were less directly critical of the Chancellor, but emphasised the need for the Government to strike an optimistic note about Brexit.
Industrialist Sir James Dyson said: ‘I’m enormously optimistic because looking outwards to the rest of the world is very, very important because that’s the fast-growing bit.’
Sanjeev Gupta, owner of steel firm Liberty House, said: ‘I think there is a great opportunity for steel and engineering in Britain and I think if anything Brexit will deepen that desire and that opportunity. Everything in life which is a challenge is also an opportunity – everything has two sides to the coin – and I see Brexit as a push to British industry to be better.’
Adam Marshall, director-general of the British Chamber of Commerce, said: ‘We are very positive about our future because we know we have great companies, whether we are in the EU or not.’
Karen Betts, chief executive of the Scotch Whisky Association, said Brexit offered ‘enormous opportunities’ to sign free-trade deals and boost exports to key markets such as China and India.
Elizabeth Gooch, chief executive of tech firm EG solutions, added: ‘We all have to get behind Brexit. We only see the opportunity in the wider world.’
LAWSON: HE’S GROSSLY NEGLIGENT
A former Tory chancellor yesterday accused Philip Hammond of being ‘grossly negligent’ in refusing to release billions now to prepare the UK for the possibility of leaving the EU without a deal.
‘I fear he is unhelpful,’ Lord Lawson said. ‘He may not intend it, but in practice what he is doing is very close to sabotage.’
Asked what Theresa May should do with her Chancellor, he replied: ‘I think probably a reshuffle.’
Lord Lawson said that a ‘no deal’ Brexit was the most likely outcome from the negotiations because the EU was terrified other countries would leave if the UK is given a good trade deal. He told the BBC’s Daily Politics show: ‘The really important thing is we prepare for no deal. It is grossly irresponsible if we do not.’
The intervention from a Tory grandee fuelled speculation Mr Hammond could face the sack in an autumn reshuffle, particularly if next month’s Budget fails to impress. Mrs May planned to axe Mr Hammond after the election but had to drop the plan after losing her Commons majority.
Lord Lawson told the BBC’s Daily Politics show Philip Hammond was being ‘grossly negligent’ in refusing to release billions now to prepare the UK for the possibility of leaving the EU without a deal
No 10 yesterday offered the Chancellor only lukewarm support. Asked about Lord Lawson’s comments, a spokesman for the Prime Minister said: ‘The PM respects the views of all Cabinet colleagues.’
Tory MP Nadine Dorries stepped up calls for Mr Hammond to go.
Mrs Dorries, a cheerleader for Boris Johnson, said: ‘What we need in the Treasury is a can-do man, and what we have in Philip Hammond is a can’t-do man.’
She said the Government needed a Chancellor who was more ‘positive and upbeat’ about the economy and Brexit. ‘We don’t have that at the moment,’ she said. ‘We have a sour Eeyore, and that is not good for the economy, it’s not good for UK plc and it’s not good for business in general.’
Former Tory leader Iain Duncan Smith also urged Mr Hammond to strike a more positive note, saying: ‘You never win an argument by saying, we are in a terrible state and there’s nothing we can do.’
Mr Hammond’s parliamentary aide Kwasi Kwarteng acknowledged he fields regular complaints about his boss from Tory MPs exasperated by his gloomy approach.
Mr Kwarteng insisted that Mr Hammond is signed up to making Brexit work. And he suggested his ‘temperament’ exacerbated ‘slight differences of opinion’.
IN THEIR OWN WORDS, TOP BOSSES WHO BACK THE UK
Lord Deighton
Chairman, Heathrow Airport (76,600 staff)
‘The appetite from Chinese airlines and businesses and tourists to come into London is huge. That’s just business waiting for us to tap. And the other big emerging markets are the same. A big part of the expansion we hope to achieve will be going to the non-EU markets. They will be key for us to be successful in to make Brexit work.’
Sir James Dyson
Founder, Dyson (3,500)
‘I’m enormously optimistic. Looking outwards to the rest of the world is very, very important because that’s the fast-growing bit.’
James Dyson believes it is important to focus business attention outside Europe because ‘that’s the fast-growing bit’
James Yeomans
Founder, Hop Stuff brewery (30)
‘You have to take advantage of any opportunity you can. The pound falling was happy days for us. Brexit is a tremendous opportunity. I’m of the opinion that where there is change there is opportunity. This is a really strong trading country. It always has been and it will be in the future. The demand for British products around the world is not going to go away. I’m incredibly optimistic, I just wish we could hurry up and get on with it.’
Neil Kuschel
UK Vice-president of sales, DHL Express (43,500)
‘Exports outside the EU are growing at four times the rate of those inside the EU. It’s a big world out there. There is no such thing as no deal in my mind. It just means World Trade Organisation rules and that is not as scary as some people have been making it out.’
Jes Staley
Chief executive, Barclays (46,400)
‘I don’t believe the European finance system will leave the City of London. There are all sorts of reasons why I think the UK will continue to be the financial lungs for Europe.’
Rahul Kale
International business director, Typhoo (250)
‘We are a very positive organisation, we see plenty of opportunities. We are selling a British brand and a British lifestyle – and there is always going to be demand for that, Brexit or no Brexit. Britain is known for quality, for reliability and there is a lot more we can do. There’s a great future for British businesses. Brexit does not change the game. Our largest market is North American, the United States and Canada, so trade with them is very important to us.’
Sanjeev Gupta
Owner, steel giant Liberty House (4,500)
Tim Martin feels PHilip Hammond is ‘much too gloomy’
‘There is a great opportunity for steel and engineering in Britain and I think, if anything, Brexit will deepen that desire and that opportunity. Everything in life which is a challenge is also an opportunity – everything has two sides to the coin – and I see Brexit as a push to British industry to be better. If you take the automotive industry – half of the supply chain is imported: as we become an independent, freestanding country in our own right, we will want to have security of supply, which will be an opportunity to invest and grow.’
Tim Martin
Founder, Wetherspoons (37,000)
‘Hammond is much too gloomy. He’s acting like a blocker in these negotiations as a result of his negative approach.’
Robert Walters
Founder, head-hunters Robert Walters (3,000)
‘I’ve not seen any job creation of any significance at all in Frankfurt or Amsterdam or Dublin or Paris. A lot of people don’t want to move.’
Adam Marshall
Director-general, British Chamber of Commerce
‘We are very positive about our future because we know we have great companies, whether we are in the EU or not. But if that future is not built on a bedrock of confidence in our businesses, we will fail. I think British businesses have that confidence in spades.’
Elizabeth Gooch
Chief executive, tech firm EG solutions (68)
‘If you are trying to implement a change, you’ve got to get on with it. We all have to get behind Brexit and make it happen, whether we like it or not. For us, we’ve always had sales outside the EU right from the word go. We only see the opportunity in the wider world.’
Lord Deighton (left), the head of Heathrow Airport, is excited about Brexit
Paul Lindsey
Chief executive, food firm Ella’s Kitchen (62)
‘We just need to get on with things and plan for every eventuality. British entrepreneurs are good at being nimble and innovating and so that’s what I think we’ll do. We need to be confident and concentrate on what we can control – this country has brands that are world-leading and that will continue to be the case.’
Dr Nik Kotecha
Chief executive, Morningside Pharmaceuticals (81)
‘Brexit is a great opportunity for businesses. We have been complacent over the years and relied on the EU too much. So I’m really excited. It’s good we’ve got trade ministers out there, looking at places outside the EU.’
Julianne Ponan
Chief executive, food firm Creative Nature (10)
‘In terms of exports the fall in the pound has been incredibly beneficial. It has opened a lot of new markets for us. The pros outweigh the cons and what people need to remember is that with exports, you’re going to be generating more revenue in future as well. Imports will come back eventually.’