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| Brexit: David Davis admits Government has done no economic assessment of the UK crashing out of EU without deal | Brexit: David Davis admits Government has done no economic assessment of the UK crashing out of EU without deal |
| (about 7 hours later) | |
| The Brexit Secretary David Davis has stunned MPs by admitting the Government has done no economic assessment of the possible effects of crashing out of the EU with "no deal". | |
| Giving evidence to MPs, Mr Davis insisted it was not possible to calculate the impact of the Brexit talks failing, adding: “I may be able to do so in about a year’s time.” | |
| Mr Davis rubbished the Treasury’s pre-referendum forecasts of an economic crash if Britain left the EU with no fresh trade agreement. | |
| But, when asked by the chairman of the Brexit select committee, if a new assessment had been carried out, Mr Davis replied: “Under my time, no.” | |
| The admission came despite Mr Davis ordering Cabinet colleagues to prepare for what is widely seen as the growing likelihood of negotiations with EU leaders breaking down. | |
| It drew sharp criticism from Labour MP Pat McFadden, who alleged: “Without an assessment, you have mortgaged the country’s economic future to a soundbite.” | It drew sharp criticism from Labour MP Pat McFadden, who alleged: “Without an assessment, you have mortgaged the country’s economic future to a soundbite.” |
| But Mr Davis hinted no assessment of the Brexit options will be carried out, saying: “You don’t need a piece of paper with numbers on it to have an economic assessment.” | But Mr Davis hinted no assessment of the Brexit options will be carried out, saying: “You don’t need a piece of paper with numbers on it to have an economic assessment.” |
| And he appeared to downgrade the Government’s pledge that the UK will enjoy the “same economic benefits” outside the EU, telling the MPs: “I was expressing an ambition.” | And he appeared to downgrade the Government’s pledge that the UK will enjoy the “same economic benefits” outside the EU, telling the MPs: “I was expressing an ambition.” |
| On the impact of crashing out with no deal, he said: “It’s not as frightening as some people think – but it’s not as simple as some people think.” | On the impact of crashing out with no deal, he said: “It’s not as frightening as some people think – but it’s not as simple as some people think.” |
| During the evidence session, with the committee shadowing his Department for Exiting the European Union, Mr Davis also: | During the evidence session, with the committee shadowing his Department for Exiting the European Union, Mr Davis also: |
| * Said it was “probably right” that holidaying Britons will lose EHIC cards, which provide free or subsidised healthcare across the EU, but added: “I have not looked at that one.” | |
| * Admitted he did not know the implications of leaving with no deal on the transfer of personal data, which is a crucial issue for the booming tech industry. | |
| * Acknowledged UK producers of dairy and meat would face tariffs of up to 40 per cent under World Trade Organisation (WTO) rules – “the numbers in agriculture are high”. | * Acknowledged UK producers of dairy and meat would face tariffs of up to 40 per cent under World Trade Organisation (WTO) rules – “the numbers in agriculture are high”. |
| * Described the argument that the UK could walk away without paying a penny to the EU, if no deal is reached, as “interesting” – “a very good start in this exercise”. | * Described the argument that the UK could walk away without paying a penny to the EU, if no deal is reached, as “interesting” – “a very good start in this exercise”. |
| * Said he expected Northern Ireland would end up with a “very light border, not a hard border” with the Republic. | * Said he expected Northern Ireland would end up with a “very light border, not a hard border” with the Republic. |
| * Said he “assumed” the "Open Skies" agreement – which has slashed airfares across the EU – will be lost, although he would fight for a successor. | |
| * Confirmed financial services firms are poised to lose "passporting rights" to trade in the EU, saying: “I would expect that to be the case, that’s an area of uncertainty.” | |
| However, Mr Davis protested that the committee had not “asked me about the upsides” – which included being able to “relax things” for the 60 per cent of trade with countries outside the EU. | However, Mr Davis protested that the committee had not “asked me about the upsides” – which included being able to “relax things” for the 60 per cent of trade with countries outside the EU. |
| And he insisted Britain’s economic path would soon became clearer, once the negotiations get underway, saying: “When we finish building the Lego blocks, we'll build the house.” | And he insisted Britain’s economic path would soon became clearer, once the negotiations get underway, saying: “When we finish building the Lego blocks, we'll build the house.” |
| Mr Davis also denied the triggering of Article 50 had been “delayed” from this week, after No.10 said it would now take place in the last week of March. | Mr Davis also denied the triggering of Article 50 had been “delayed” from this week, after No.10 said it would now take place in the last week of March. |
| His department had never said the exit clause would be invoked this week – and he expected the Brexit bill to get Royal Assent tomorrow. | His department had never said the exit clause would be invoked this week – and he expected the Brexit bill to get Royal Assent tomorrow. |