Fresh Cabinet infighting erupted today with Michael Gove tearing into Philip Hammond for failing to avert a defeat on Brexit legislation.
In an angry letter, the Environment Secretary lashed out at the Treasury for ‘short-sightedness’ which had led to an ‘avoidable’ Lords defeat for the EU Withdrawal Bill.
Peers voted to force the Government to maintain EU environmental principles and standards after Brexit, the 15th defeat suffered during the Bill’s passage through the Lords.
In the leaked missive to Cabinet colleagues, Mr Gove pinned the blame for the defeat squarely on the Chancellor.
In an angry letter, Michael Gove (pictured right in Downing Street yesterday) lashed out at Philip Hammond (left speaking to the CBI last night) for ‘short-sightedness’ which had led to an ‘avoidable’ Lords defeat for the EU Withdrawal Bill
Boris Johnson (pictured on a visit to Argentina last night) has risked inflaming tensions over post-Brexit trade plans by demanding that Theresa May ‘gets on with’ taking the UK out of the customs union
Mr Hammond blocked plans to give a new post-Brexit environmental watchdog powers to fine the Government and local authorities for failing to meet recycling and clean air targets, according to the Daily Telegraph.
In the letter Mr Gove wrote: ‘The short-sightedness of the Treasury has now led to an entirely predictable and avoidable defeat on the EU Withdrawal Bill and inflicted a damaging blow to the Government’s environmental credentials.’
The Government faces a struggle to reverse the 15 defeats suffered in the Lords when the legislation returns to the Commons over the next few weeks.
Mr Gove warned there would have to be ‘significant concessions’ to overturn the amendment, including giving the new green watchdog the power to take the Government to court and issue fines.
He said ministers ‘cannot afford to repeat the mistakes of recent weeks and have the Government’s environmental credibility further undermined’.
However, a Treasury source said: ‘It is clearly wrong to blame the Treasury for this.
‘Philip has worked closely with Michael to support the Government’s environmental agenda, including on plans for a plastic waste tax.’
Meanwhile, Boris Johnson risked inflaming tensions over post-Brexit trade plans by demanding that Theresa May ‘gets on with’ taking the UK out of the customs union.
The PM has been fighting to contain Eurosceptic anger over concessions on a ‘backstop’ that could see Britain tied to EU customs rules beyond 2020.
Mr Hammond used a speech to the CBI last night to insist that a solution can be found that will avoid a hard Irish border, and explicitly acknowledged that Britain would not be in a customs union.
The PM (pictured attending a memorial for the Manchester Arena bombing yesterday) has been fighting to contain Eurosceptic anger over concessions on a ‘backstop’ that could see Britain tied to EU customs rules beyond 2020.
Brexiteers including Mr Johnson support a ‘maximum facilitation’ scheme – known as Max Fac – which would use trusted trader arrangements and technology like number plate recognition cameras to avoid the need for border checks.
But the PM and others including Mr Hammond have been pushing for a new ‘customs partnership’ where the UK collects tariffs on behalf of the EU for goods intended for the bloc, with traders potentially able to claim a rebate if British duties vary.
Mr Hammond said: ‘The UK has proposed two possible future customs models.
‘Both are ‘works in progress’ but we are confident that, building on these two models, we can develop a solution that will allow us to move forward while meeting your concerns.’