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You can find the current article at its original source at https://www.theguardian.com/politics/live/2017/jun/20/philip-hammond-gives-mansion-house-speech-politics-live
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| Philip Hammond says UK should stick to EU customs rules for period after Brexit - Politics live | Philip Hammond says UK should stick to EU customs rules for period after Brexit - Politics live |
| (35 minutes later) | |
| 9.15am BST | |
| 09:15 | |
| I’m sorry the comments were left off earlier. That was an oversight. They are on now. | |
| 9.08am BST | |
| 09:08 | |
| What Hammond said about the UK sticking with EU customs union rules for short term after Brexit | |
| This is what Philip Hammond, the chancellor, said in his speech about how Britain would have to abide by EU customs union rules for a period after Brexit. | |
| So, how do we achieve this “Brexit for Britain”? ... | |
| By agreeing frictionless customs arrangements to facilitate trade across our borders – and crucially – to keep the land border on the island of Ireland open and free-flowing. | |
| To do this in the context of our wider objectives will be challenging. | |
| It will almost certainly involve the deployment of new technology. | |
| And therefore we’ll almost certainly need an implementation period, outside the customs union itself, but with current customs border arrangements remaining in place, until new long-term arrangements are up and running. | |
| 8.59am BST | 8.59am BST |
| 08:59 | 08:59 |
| Pound falls after Bank of England governor says now is not the time to raise interest rates | |
| The pound has fallen to a one-week low against the US dollar, as Mark Carney declares it is too early to raise interest rates. | The pound has fallen to a one-week low against the US dollar, as Mark Carney declares it is too early to raise interest rates. |
| The Bank of England governor is telling the Mansion House audience that the UK economy isn’t strong enough to handle higher interest rates, especially as we don’t know how the Brexit talks will proceed. | The Bank of England governor is telling the Mansion House audience that the UK economy isn’t strong enough to handle higher interest rates, especially as we don’t know how the Brexit talks will proceed. |
| This sent the pound sharply lower, to $1.2674: | This sent the pound sharply lower, to $1.2674: |
| Carney explains that he doesn’t agree with the three members of the Monetary Policy Committee (MPC) who voted to hike borrowing costs last week (they were outvoted by the other five members, including Carney). | Carney explains that he doesn’t agree with the three members of the Monetary Policy Committee (MPC) who voted to hike borrowing costs last week (they were outvoted by the other five members, including Carney). |
| Here’s the relevant section from Mark Carney’s speech: | Here’s the relevant section from Mark Carney’s speech: |
| Different members of the MPC will understandably have different views about the outlook and therefore on the potential timing of any Bank Rate increase. But all expect that any changes would be limited in scope and gradual in pace. | Different members of the MPC will understandably have different views about the outlook and therefore on the potential timing of any Bank Rate increase. But all expect that any changes would be limited in scope and gradual in pace. |
| From my perspective, given the mixed signals on consumer spending and business investment, and given the still subdued domestic inflationary pressures, in particular anaemic wage growth, now is not yet the time to begin that adjustment. | From my perspective, given the mixed signals on consumer spending and business investment, and given the still subdued domestic inflationary pressures, in particular anaemic wage growth, now is not yet the time to begin that adjustment. |
| In the coming months, I would like to see the extent to which weaker consumption growth is offset by other components of demand, whether wages begin to firm, and more generally, how the economy reacts to the prospect of tighter financial conditions and the reality of Brexit negotiations. | In the coming months, I would like to see the extent to which weaker consumption growth is offset by other components of demand, whether wages begin to firm, and more generally, how the economy reacts to the prospect of tighter financial conditions and the reality of Brexit negotiations. |
| Here’s the moment that traders saw those quotes: | Here’s the moment that traders saw those quotes: |
| The pound falls after Mark Carney says it's not yet time to raise interest rates in Britain https://t.co/8l0x5mr7gl pic.twitter.com/TBHvfg4q3h | The pound falls after Mark Carney says it's not yet time to raise interest rates in Britain https://t.co/8l0x5mr7gl pic.twitter.com/TBHvfg4q3h |
| My colleague Graeme Wearden has more on his business live blog. | My colleague Graeme Wearden has more on his business live blog. |
| Updated | |
| at 9.02am BST | |
| 8.48am BST | 8.48am BST |
| 08:48 | 08:48 |
| The Carney speech involves some hardcore macroeconomics. Nothing wrong with that, of course, but rather than do it minute by minute, it is probably best if I just summarise from the full text. | The Carney speech involves some hardcore macroeconomics. Nothing wrong with that, of course, but rather than do it minute by minute, it is probably best if I just summarise from the full text. |
| I’ve got a full text of the Hammond speech too, so I will summarise that first. | I’ve got a full text of the Hammond speech too, so I will summarise that first. |
| 8.45am BST | 8.45am BST |
| 08:45 | 08:45 |
| Carney says UK faces 'weaker real income growth' as Brexit takes place | Carney says UK faces 'weaker real income growth' as Brexit takes place |
| This is what Carney said about Brexit. | This is what Carney said about Brexit. |
| Since the prospect of Brexit emerged, financial markets, notably sterling, have marked down the UK’s economic prospects. | Since the prospect of Brexit emerged, financial markets, notably sterling, have marked down the UK’s economic prospects. |
| Monetary policy cannot prevent the weaker real income growth likely to accompany the transition to new trading arrangements with the EU. But it can influence how this hit to incomes is distributed between job losses and price rises. And it can support households and businesses as they adjust to such profound change. Indeed, in such exceptional circumstances, the MPC is required to balance any trade-off between the speed with which it returns inflation sustainably to the target and the support that monetary policy provides to jobs and activity. | Monetary policy cannot prevent the weaker real income growth likely to accompany the transition to new trading arrangements with the EU. But it can influence how this hit to incomes is distributed between job losses and price rises. And it can support households and businesses as they adjust to such profound change. Indeed, in such exceptional circumstances, the MPC is required to balance any trade-off between the speed with which it returns inflation sustainably to the target and the support that monetary policy provides to jobs and activity. |
| That is why last summer the Bank announced a series of monetary and macro-financial measures to support the economy during this transition. This stimulus is working. Credit is widely available, the cost of borrowing is near record lows, the economy has outperformed expectations, and unemployment has reached a 40 year low. | That is why last summer the Bank announced a series of monetary and macro-financial measures to support the economy during this transition. This stimulus is working. Credit is widely available, the cost of borrowing is near record lows, the economy has outperformed expectations, and unemployment has reached a 40 year low. |
| 8.43am BST | 8.43am BST |
| 08:43 | 08:43 |
| The full text of Mark Carney’s speech is now here (pdf), on the Bank of England’s website. | The full text of Mark Carney’s speech is now here (pdf), on the Bank of England’s website. |
| 8.41am BST | 8.41am BST |
| 08:41 | 08:41 |
| Mark Carney's speech | Mark Carney's speech |
| Mark Carney, the governor of the Bank of England, starts by referring to the recent terrorist attacks, and to the murder of Jo Cox last year. We must respond by building a Brexit that works for all. | Mark Carney, the governor of the Bank of England, starts by referring to the recent terrorist attacks, and to the murder of Jo Cox last year. We must respond by building a Brexit that works for all. |
| He turns to Brexit, and warns that people face weaker real income growth. It is not time for an interest rate rise, he says. | He turns to Brexit, and warns that people face weaker real income growth. It is not time for an interest rate rise, he says. |
| Mark Carney makes direct link between Brexit process & "weaker real income growth" - people poorer. "Not yet time" for interest rate rise | Mark Carney makes direct link between Brexit process & "weaker real income growth" - people poorer. "Not yet time" for interest rate rise |
| 8.38am BST | 8.38am BST |
| 08:38 | 08:38 |
| Here is some snap reaction to Philip Hammond’s speech. | Here is some snap reaction to Philip Hammond’s speech. |
| From Dan Roberts, the Guardian’s Brexit editor | From Dan Roberts, the Guardian’s Brexit editor |
| Hammond tells Mansion House speech that City is already on receiving end of "protectionist" tactics from Europe - "disguised as regulation". | Hammond tells Mansion House speech that City is already on receiving end of "protectionist" tactics from Europe - "disguised as regulation". |
| Feels like Hammond is toning it down on Brexit this morning. Has he had his spreadsheet locked? | Feels like Hammond is toning it down on Brexit this morning. Has he had his spreadsheet locked? |
| From the Daily Mirror’s Jack Blanchard | From the Daily Mirror’s Jack Blanchard |
| Hammond in summary:- Jobs & prosperity the priority for Brexit- Immigration is good- Customs union arrangements should stay for some time | Hammond in summary:- Jobs & prosperity the priority for Brexit- Immigration is good- Customs union arrangements should stay for some time |
| 8.33am BST | 8.33am BST |
| 08:33 | 08:33 |
| Hammond says Britain can get a Brexit deal that puts jobs first. | Hammond says Britain can get a Brexit deal that puts jobs first. |
| Yesterday was a confident start, he says. | Yesterday was a confident start, he says. |
| He now hands over to the next speaker, Mark Carney, the governor of the Bank of England. | He now hands over to the next speaker, Mark Carney, the governor of the Bank of England. |
| 8.32am BST | 8.32am BST |
| 08:32 | 08:32 |
| Hammond says UK should stick to EU customs union rules for period after Brexit | Hammond says UK should stick to EU customs union rules for period after Brexit |
| Hammond asks how Britain can achieve a Brexit that works for the people. | Hammond asks how Britain can achieve a Brexit that works for the people. |
| He identifies four priorities. | He identifies four priorities. |
| First, it must get a comprehensive agreement on trade and services. | First, it must get a comprehensive agreement on trade and services. |
| Second, there must be mutually beneficial transitional arrangement, avoiding disruption and dangerous cliff edges. | Second, there must be mutually beneficial transitional arrangement, avoiding disruption and dangerous cliff edges. |
| Third, there must be frictionless customs arrangements. | Third, there must be frictionless customs arrangements. |
| This will involve an implementation period, when the UK will be outside the customs union, but customs rules will remain in place pending the new rules coming into force. | This will involve an implementation period, when the UK will be outside the customs union, but customs rules will remain in place pending the new rules coming into force. |
| Hammond says the UK expects to abide by customs union rules for an “implementation period” after Brexit. | Hammond says the UK expects to abide by customs union rules for an “implementation period” after Brexit. |
| He says the new system will also involve investment in technology. | He says the new system will also involve investment in technology. |
| And, fourth, there must be arrangements in place to protect the City, he says. | And, fourth, there must be arrangements in place to protect the City, he says. |
| 8.26am BST | 8.26am BST |
| 08:26 | 08:26 |
| Hammond is now turning to Brexit. | Hammond is now turning to Brexit. |
| He says the government set out its view in the prime minister’s Lancaster House speech. | He says the government set out its view in the prime minister’s Lancaster House speech. |
| But this is a negotiation, he says. | But this is a negotiation, he says. |
| He says people voted to leave the EU. But they did not vote to become poorer. | He says people voted to leave the EU. But they did not vote to become poorer. |
| 8.24am BST | 8.24am BST |
| 08:24 | 08:24 |
| Hammond says the government does not want to “turn inward” after Brexit. | Hammond says the government does not want to “turn inward” after Brexit. |
| But trade arrangements must work for the benefit of the UK. | But trade arrangements must work for the benefit of the UK. |
| Whilst we seek to manage migration, we do not seek to shut it down. | Whilst we seek to manage migration, we do not seek to shut it down. |
| Hammond says the government will not “shut down” immigration after Brexit. | Hammond says the government will not “shut down” immigration after Brexit. |
| He quotes from what the Conservative manifesto says about globalisation. | He quotes from what the Conservative manifesto says about globalisation. |
| 8.22am BST | 8.22am BST |
| 08:22 | 08:22 |
| Hammond says it may be beneficial to maintain a relationship with the European Investment Bank (EIB) after Brexit. | Hammond says it may be beneficial to maintain a relationship with the European Investment Bank (EIB) after Brexit. |
| But he says he will not take that for granted. | But he says he will not take that for granted. |
| 8.21am BST | 8.21am BST |
| 08:21 | 08:21 |
| Hammond says the government wants to drive up productivity. | Hammond says the government wants to drive up productivity. |
| He says if productivity goes up by just a quarter of 1%, over 10 years that will add £67bn to the economy. | He says if productivity goes up by just a quarter of 1%, over 10 years that will add £67bn to the economy. |
| He says that is equivalent to £2,400 for every household. | He says that is equivalent to £2,400 for every household. |
| He says the government wants to make every learner more skilled, every worker more productive, every business more competitive and every public service more efficient. | He says the government wants to make every learner more skilled, every worker more productive, every business more competitive and every public service more efficient. |
| 8.18am BST | 8.18am BST |
| 08:18 | 08:18 |
| Hammond says people are “weary of seven years of hard slog” (ie, austerity). | Hammond says people are “weary of seven years of hard slog” (ie, austerity). |
| But if the government wants to spend more, it can only do so three ways. | But if the government wants to spend more, it can only do so three ways. |
| It can tax more - but the Conservatives are committed to low taxes, he says. | It can tax more - but the Conservatives are committed to low taxes, he says. |
| It can borrow more - but he says he is sticking to his deficit reduction targets. | It can borrow more - but he says he is sticking to his deficit reduction targets. |
| That only leave higher growth and higher productivity, he says. | That only leave higher growth and higher productivity, he says. |
| Hammond says he learnt during the election that the Tories have to make the case again for higher productivity. | Hammond says he learnt during the election that the Tories have to make the case again for higher productivity. |
| 8.15am BST | 8.15am BST |
| 08:15 | 08:15 |
| Philip Hammond gives Mansion House speech | Philip Hammond gives Mansion House speech |
| Philip Hammond, the chancellor, has just started giving his Mansion House speech. He was due to give it last week, but it was cancelled after the Grenfell Tower fire. | Philip Hammond, the chancellor, has just started giving his Mansion House speech. He was due to give it last week, but it was cancelled after the Grenfell Tower fire. |
| Instead he is now, unusually, giving it in the morning. | Instead he is now, unusually, giving it in the morning. |
| He started by talking about the fire, and saying that the survivors must get everything they need. | He started by talking about the fire, and saying that the survivors must get everything they need. |
| And he said the government must get to the bottom of what caused it. | And he said the government must get to the bottom of what caused it. |
| He then spoke about the state of the economy, saying it was in good shape. | He then spoke about the state of the economy, saying it was in good shape. |
| Now he is turning to the future. | Now he is turning to the future. |