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BREXIT LIVE: MPs fear ‘BOMBS AND WEAPONS’ as public debate sours – ‘Gathering gloom’

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Former First Secretary of State Damian Green has warned British politicians risk being attacked with “bombs and weapons” unless they tone down their “dangerous” rhetoric over Brexit.

His warning comes after vile comments from anonymous Conservative MPs directed towards Theresa May were widely condemned throughout Westminster.

They were quoted saying the Prime Minister should “bring her own noose” to a meeting with backbenchers last week and warned “the moment is coming when the knife gets heated, stuck in her front and twisted”.

Writing in the Mail on Sunday, Mr Green said: “This sort of language is not just disgusting. It is profoundly troubling.

“People have rightly been repelled, and I suspect politicians will now be more careful, for a while at least.

“Yet the atmosphere in Parliament remains so poisonous that several MPs have told me they are even avoiding the Tea Room – which normally serves as a relaxing canteen – because they can’t stand the thought of having to sit next to certain colleagues.

“Yes, there are more serious problems than rudeness, particularly towards politicians. But it is time to recognise that the violence of public rhetoric has reached a new and dangerous level.

“Remember, there are some people who treat this talk of knives and nooses as a call to action.

“The mood at Westminster is one of gathering gloom across the parties. Sensible people on all sides say that we must clean up our own act and turn down the volume, but persuading millions of others to do the same is not so easy.

There are those who say that we can happily ignore the lies and menaces spread on social media, that what appears on screen really doesn’t matter, that anything goes on the web, and so on. But such people have their heads in the sand. However shallow the anonymous rantings of social media might seem, they affect the real world, too.

And this brings us back once again to events in America, a place where politics now involves bombs and weapons.

“If you only took your news from social media (as too many people now do), you would assume that all Brexiteers were racists who hated the modern world, or that all Remainers were out-of-touch intellectuals who loathed Britain.

This is no way to bring the country together.

“These are dark times and we must all play our part in trying to alleviate the climate of aggression. However much we may disagree, others have a right to their point of view.

“For unless we establish a more civilised political conversation, and urgently, we will find ourselves condemned to a debased and potentially lethal form of politics – as Americans know all too well and, as I fear, we will soon discover for ourselves.”

Follow Express.co.uk below for live Brexit updates:

Brexit Theresa May

Brexit: MPs are plotting to destroy Theresa May’s plan with a “killer” amendment (Image: GETTY)

22.10pm update: New 50p coin will commemorate Brexit, says Treasury

Britain will mint a new 50 pence coin to mark leaving the European Union in spring 2019, the treasury has confirmed.

The departure is one of a series of historic moments such as the 2012 Olympics, the decision to join the European Economic Community, the predecessor to the EU, in 1973, and the centenary of the First World War.

A Treasury spokesman said: “In line with this tradition, the Royal Mint will produce a coin to commemorate the UK leaving the European Union.”

The news came in a video on the department’s official Twitter feed, in which a seven-sided silver-coloured 50 pence piece was seen with “Peace, prosperity and friendship with all nations,” emblazoned on it, and day, “March 29 2019”.

8.01pm update: Lord Bridges questions option of extending transition period

A Tory former  minister has challenged Theresa May’s decision to keep open the option of extending the transition period after leaving the EU.

Lord Bridges of Headley questioned how this squared with an earlier assurance by the Prime Minister that it would be time-limited, giving “everyone the certainty that this will not go on forever”.

In response, the Government said no agreement had been reached and talks were ongoing.

Mrs May told MPs last week that there may be limited circumstances when it is in Britain’s interest to agree to a short extension to the transition period, but insisted the transition – currently due to end at the end of 2020 – would have to be over “well before” the end of the parliament expected in June 2022.

But Lord Bridges said: “Given that the Prime Minister wants to bring certainty to the situation, how does the option to extend the transition do that?”

Minister Lord Callanan said: “I understand that the possibility of extending it has been raised in the discussions in Brussels, but no agreement has been made and discussions on such matters are continuing.”

7.27pm update: Corbyn blasts Hammond for “broken promise Budget, half-measures and quick fixes”

Labour leader Jeremy Corbyn criticised Philip Hammond for delivering a “broken promise Budget”.

The Labour leader said eight years of austerity has “damaged our economy” and delayed the recovery, adding the Government has not abandoned the policy despite the Chancellor’s latest spending pledges.

Leading the response to the Budget, Mr Corbyn also said the proposals announced will “not undo the damage done” by the squeeze on spending.

He told the Commons: “The Prime Minister pledged austerity was over – this is a broken promise Budget.

“What we’ve heard today are half measures and quick fixes while austerity grinds on.

“And far from people’s hard work and sacrifices having paid off, as the Chancellor claims, this Government has frittered it away in ideological tax cuts to the richest in our society.”

Mr Corbyn added: “The Government claims austerity has worked so now they can end it.

“That is absolutely the opposite of the truth – austerity needs to end because it has failed.”

6.10pm update: ‘We’ll be worse off after Brexit,’ claims former minister Morgan

Britain’s economy will be “worse off because of Brexit”, a senior Tory MP has claimed as she urged ministers to “seriously consider” alternatives to their current plan.

Nicky Morgan, chairwoman of the Treasury Select Committee, said the UK has the “best possible deal” at the moment and suggested no  agreement will better it.

She also voiced concerns over the forecasts which underpinned Chancellor Philip Hammond’s Budget, given the uncertainty over what will happen in the coming months.

The former cabinet minister told the Commons: “Brexit is the greatest and most imminent source of uncertainty looming over this Budget.

“It’s just stating the obvious to say that the nature of the United Kingdom’s withdrawal from the EU could upend the economic forecasts on which this Budget is based.”

4.42pm: Bookie offers 4-1 on UK still being a member of EU on January 1, 2020

Bookmaker Coral is offering 4-1 that the UK is still a full member of the EU on January 1, 2020.

It is just evens for no deal to be agreed by the scheduled date of the end of March next year.

Coral’s Harry Aitkenhead. said: “The Chancellor has announced today that another Budget will be needed for in the event of a no deal, but the way things are going you just can’t rule it out.

“Our latest odds suggest that it’s touch and go no as to whether a deal will be stuck by the start of April 2019.”

It is 3-1 for another referendum next year, whilst it is 10-1 that it takes place and a remain vote wins.

4.08pm update: Britain “can once again lead the world” when it comes to technological innovation after Brexit, claims Hammond

Mr Hammond predicted Britain would lead the way when it came to “technological innovation” after Brexit.

He said: “I want Britain to be one of the great winners of the technological revolution

“As we finalised our departure from the EU we must unleash the investment that will drive our future prosperity

“Britain is open for business.”

3.58pm update: Hammond sets aside another £500 million for Brexit preparations

The Chancellor said he was setting aside an extra £500 million for preparations for the UK leaving the European Union.

He added that “if the economic or fiscal outlook changes materially in-year I reserve the right to upgrade the Spring Statement to a full Fiscal Event”.

Mr Hammond’s words appear to confirm reports earlier this week suggesting a failure to strike a Brexit deal could force him to reassess his budget statement.

3.50pm: “Real wage growth in each of next five years,” predicts Hammond

Mr Hammond painted a rosy picture of the British economy heading into Brexit.

He said: “The OBR is forecasting real wage growth in each of the next five years – a far cry from the dismal picture the leader of the Opposition is desperate to paint every Wednesday.

“The deficit is down from almost 10 percent under Labour to less than 1.4 percent next year under this Conservative Government and falling to just 0.5 percent by 2024.”
“We are no longer borrowing at all to finance current spending. Our national debt peaked in 2016/17.”

3.47pm update: Hammond promises a Brexit dividend

Mr Hammond predicted a boost for Britain’s economy as a result of leaving the EU.

He told MPs: “We are confident we will secure a deal that delivers that dividend.

“Confident but not complacent so we will continue to plan for all eventualities.

I have already allocated £2.2bn to departments for Brexit preparations.”

“We are working for the best outcome for Britain and preparing for every eventuality.”

Philip Hammond

Philip Hammond delivers his budget statement (Image: Youtube)

3.40pm update: Hammond looks forward to life outside European Union

Mr Hammond took a swipe at Labour as he looked forward to a future outside the EU.

He said: “Our economy continues to confound those who talk it down and we continue to focus resolutely on challenges that lie ahead as we build a new future outside the EU.

“Let us not forget the achievements of the British people in clearing up the aftermath of Labour’s great recession.”

3.37pm update: Last pre-Brexit budget heralds end of austerity, says Chancellor Hammond

Chancellor Philip Hammond introduced his final pre-Brexit financial statement as a “budget for the future” for “people who we are proud to represent.

He added: “British people put their faith in us to to the job and today we repay that faith.

“A budget for Britain’s future, a budget for hardworking families, the strivers, grafters and the carers who are the backbone of our economy”
“This budget is unashamedly for you. The British people put the faith in us to do the job and today we repay that trust with a budget that paves the way for a brighter future.
“Now we have reached a defining moment in that long hard journey

“The era of austerity is finally coming to an end.

3.25pm update: Financiers “will move to Frankfurt, Paris and the Netherlands” after Brexit, claim Dutch regulators

Dutch financiers preparing for a 20-fold increase in financial trading taking place on its infrastructure if Britain leaves the European Union in March with no deal in place, claiming banks were already in the process of moving operations to Frankfurt and Paris.

The Dutch financial markets authority (AFM) has said trading houses were converging on the Netherlands as an alternative to London after Britain leaves the bloc.

A statement issued today said: “While border and customs negotiations are attracting attention, there is a fairly invisible shift taking place in European capital markets.

“The AFM is conducting conversations with more than 150 parties that are interested in a (Dutch trading) license.”

AFM Chairwoman Merel van Vroonhoven said she expected 30 to 40 percent of European trading in financial instruments will wind up being housed in the Netherlands, making it the centre of EU financial trading.

The AFM also said banks were shifting operations to Frankfurt and Paris, and asset managers to Luxembourg and Dublin.

3pm update: MPs warned to tone down ‘dangerous’ language or risk being attacked with ‘bombs and weapons’

Former First Secretary of State Damian Green has warned British politicians risk being attacked with “bombs and weapons” unless they tone down their “dangerous” rhetoric over Brexit.

His warning comes after vile comments from anonymous Conservative MPs directed towards Theresa May were widely condemned throughout Westminster.

They were quoted saying the Prime Minister should “bring her own noose” to a meeting with backbenchers last week and warned “the moment is coming when the knife gets heated, stuck in her front and twisted”.

Writing in the Mail on Sunday, Mr Green said: “This sort of language is not just disgusting. It is profoundly troubling.

“People have rightly been repelled, and I suspect politicians will now be more careful, for a while at least.

“Yet the atmosphere in Parliament remains so poisonous that several MPs have told me they are even avoiding the Tea Room – which normally serves as a relaxing canteen – because they can’t stand the thought of having to sit next to certain colleagues.

“Yes, there are more serious problems than rudeness, particularly towards politicians. But it is time to recognise that the violence of public rhetoric has reached a new and dangerous level.

“Remember, there are some people who treat this talk of knives and nooses as a call to action.

“The mood at Westminster is one of gathering gloom across the parties. Sensible people on all sides say that we must clean up our own act and turn down the volume, but persuading millions of others to do the same is not so easy.

There are those who say that we can happily ignore the lies and menaces spread on social media, that what appears on screen really doesn’t matter, that anything goes on the web, and so on. But such people have their heads in the sand. However shallow the anonymous rantings of social media might seem, they affect the real world, too.

And this brings us back once again to events in America, a place where politics now involves bombs and weapons.

“If you only took your news from social media (as too many people now do), you would assume that all Brexiteers were racists who hated the modern world, or that all Remainers were out-of-touch intellectuals who loathed Britain.

This is no way to bring the country together.

“These are dark times and we must all play our part in trying to alleviate the climate of aggression. However much we may disagree, others have a right to their point of view.

“For unless we establish a more civilised political conversation, and urgently, we will find ourselves condemned to a debased and potentially lethal form of politics – as Americans know all too well and, as I fear, we will soon discover for ourselves.”

1.10pm update: DUP will back budet but warns Government over Brexit

The Democratic Unionist Party has vowed to back the Budget but could oppose the Government in future if a Brexit deal indicates Northern Ireland is to be treated differently to the rest of the UK.

Sammy Wilson, Brexit spokesman for the Northern Irish party, told the BBC: “To date we haven’t seen the outcome of the Withdrawal Agreement so it would be reckless of us to oppose the budget on the basis of something we haven’t seen.

“However, they shouldn’t take for granted just because they get the budget passed that they can do whatever they want with Northern Ireland.

12.30pm update: Talks on UK-EU post-Brexit flights have yet to begin – Grayling

Transport Secretary Chris Grayling has admitted talks around the impact of flights between the UK and EU after Brexit have not yet started.

He told an annual conference of trade body the Airport Operators Association in London the “process is not in our hands”.

The single market for aviation means there are no commercial restrictions for airlines flying within the EU.

The continuation of flights between the UK and EU after Brexit will require either a fresh deal with the European Commission or bilateral agreements with different countries.

Mr Grayling said: “I have had plenty of talks with both the Commission and other transport ministers.

“We will start formal talks as soon as they are willing to start formal talks. As I sit here today, they haven’t been.

“But I haven’t met one single person either in the Commission or a member state who believes there will be an interruption to aviation.”

11.50am update: Hammond can still unleash ‘fiscal firepower’ to boost economy in Brexit no-deal – May’s spokesman

Theresa May’s spokesman has confirmed all spending commitments to be set out by Philip Hammond in today’s Budget will be funded irrespecrtive of whether Britain secures a Brexit deal with the EU.

On Sunday, the Chancellor warned rebels in his Conservative Party he would have to reverse plans to ease nearly a decade of austerity if Britain tumbles out of the bloc without an agreement with Brussels.

But the spokesman indicated Mr Hammond would still be able to unleash the “fiscal firepower” in an “economic intervention” to boost the economy in the event of a Brexit no-deal.

Asked whether Theresa May agreed with the Chancellor an emergency Budget might be needed if there is no deal, the spokesman said: “What the Chancellor said yesterday was that he would use the fiscal reserves that we have built up through hard work and sound economic management to ensure that Britain will succeed whatever the circumstances.

“The Chancellor has spoken on numerous occasions about having maintained what he would describe as ‘fiscal firepower’ which he will be able to use in the event of a no-deal scenario.”

He added: “What the Chancellor was pointing out in relation to a budget was that if economic circumstances change, he would consider economic interventions. That’s what you would expect any sensible Chancellor to do.”

Brexit Boris Johnson

Brexit: Boris Johnson attacked “bias” Brussels’ customs laws (Image: GETTY)

11.35am update: Former European Commission President says Article 50 could be delayed to allow more Brexit breathing space

Jose Manuel Barosso still believes Britain and the EU will reach a Brexit deal.

He told BBC’s Today programme: “Typically these kind of agreements are made very late in the process.

“There is always some drama, and by the way you are seeing that drama also here in Britain. But at the end I have no doubt about the commitment of the European Union to a compromise.

“In Brussels there is an expression that I heard very often, ‘stop the clock.’ When there is not an agreement, sometimes it happens that we stop the clock, we give [ourselves] more time. So I don’t think we should overdramatise this issue of timing.

“Of course it’s better to be punctual. I hope that we are punctual, to have an agreement ready on time. But I think it’s not the end of the world.”

11am update: Consultants were paid £1.6m last month for Brexit planning – Cabinet Office figures reveal 

Consultancies were paid more than £1.5 million last month to advise officials drawing up Brexit plans.

This is according to figures released by the Cabinet Office, which show spending on project management fees by the teams leading the Government’s response to leaving the EU.

The Times has reported EY and Deloitte were paid £178,312 and £486,473 respectively. Boston Consulting received two payments of £158,240 and £169,440, while Bain & Company received one payment of £450,000.

The final payment oj just over £220,000 was made to British firm PA Consulting.

The Cabinet Office has not specified which projects the money was being spent on.

It said the £1.6 million covered work done over a longer tome than the one-month payment period but has not revealed what the total contracts were worth.

The Cabinet Office said: “The contracts cover skills that are needed on EU exit preparation and implementation to allow the widest scope for departments to secure the capability they need, including commercial, operational, programme and project management.” 

Brexit Angela Merkel

Brexit: Jacob Rees-Mogg reacted to Angela Merkel quitting as CDU leader with Brexit warning (Image: GETTY)

10.45am update: Rees-Mogg REACTS to Angela Merkel quitting as CDU leader with Brexit WARNING

Jacob Rees-Mogg has questioned what impact Angela Merkel’s decision to not stand for re-election of the CDU party will have on Brexit negotiations.

Speaking on Nick Ferrari’s morning LBC show, he said: “When people retire or resign, one should remember them for the extraordinary contribution they have made to their country.

“She is a patriotic German lady, who has held fast to her political beliefs for a very extended period in the highest office.

“One should draw a curtain over the day to day political disputes.

The host stepped in asking what should be said about the German leader tomorrow.

Mr Rees-Mogg added: “Tomorrow we can consider what the effect will have on the Brexit negotiations and more earthy matters.”

ANGELA MERKEL QUITS: LIVE UPDATES

10.40am update: Fishing industry to meet US ambassador to discuss post-Brexit trade opportunities 

Fishing industry representatives are meeting with the US ambassador to the UK Woody Johnson in London on Monday to discuss post-Brexit trade opportunities.

Those invited to the event in London with Woody Johnson on Monday include the Scottish Fishermen’s Federation (SFF), the Scottish Seafood Association, the Scottish Pelagic Processors’ Association, Peterhead Port Authority, Lunar Fishing Company, Don Fishing Company and Scottish Salmon Producers’ Organisation.

SFF chief executive Bertie Armstrong claimed the potential market for seafood in the US is “there to be grasped”.

He said: “The fishing industry stands on the cusp of a new era, with the potential for UK boats to be landing much more of the quality fish that already swim in our waters.

“While we remain unconvinced by the argument that this will have a detrimental impact on our existing trading arrangements, we have a fantastic opportunity to open up new markets.

“Innovations in technology and transport mean that the quality of seafood produce can be maintained.”

Brexit Jacob Rees-Mogg

Brexit: Jacob Rees-Mogg has urged Philip Hammond to signal Brexit Britain is ‘open to the world’ (Image: GETTY)

10.30am update: ‘Brexit EMBARRASSING MESS’ Former British diplomat condemns Tories ‘ideological warfare’

Sir Simon Fraser lashed out against the Government’s “embarrassing mess” in the Brexit negotiations claiming MPs are more worried about winning their “ideological warfare” than finding a solution for the country.

Speaking on Pienaar’s Politics, the former British diplomat claimed a lot of politicians in Westminster decided to remain ignorant about Brexit ahead of the 2016 referendum.

The former Foreign Office Permanent Secretary accused MPs of being “entrenched” in their ideologies whilst failing to put forward a clear plan for the country’s exit from the European Union.

He said: “The politics is bad on Brexit. It’s an embarrassing mess, frankly, Brexit now.

“We have politicians who are sort of entrenched in ideological warfare on issues they didn’t really know existed when we had the referendum two years ago.

“And we don’t have a clear plan. It’s very clear that early on there was a lot of ignorance – and sometimes wilful ignorance – about it.”

10.20am update: Rees-Mogg outlines TOP strategy to ‘open to world’ in bid to BOOST Brexit Britain trade

Jacob Rees-Mogg urged Chancellor Philip Hammond to announce plans to scrap tariffs on imported goods in his Autumn Budget to signal Brexit Britain is “open to the world”.

He suggested the move would provide potential trade partners with proof the UK will be a “global nation” immediately after Brexit.

The Brexiteer MP urged the Chancellor to include plans on how Britain would trade under World Trade Organisation (WTO) terms should talks with the European Union collapse.

Speaking to Sophy Ridge on Sky News, Mr Rees-Mogg said: “I think we should be making announcements now about how we would deal on World Trade Organisation terms.

“Why don’t we get rid of all tariffs on goods that we don’t produce in this country on 29 March, 2019 to show we’re open to the world? That we’re going to be a global nation rather than a peripheral European nation.”

10.10am update: EU ‘JEALOUS’ of UK claims Boris Johnson as he attacks ‘bias’ Brussels’ customs laws

Boris Johnson has claimed the EU is jealous of British innovation, and is deliberately making their customs laws more favourable to the EU and companies in the bloc to punish the UK.

The former Foreign Secretary discussed in a newspaper column how Sir James Dyson had gone to Singapore to develop an electric car as well as how come 2021 when it will allegedly be put on the market, he raised the question of who will set and collect the tariffs for the importing of the vehicle.

He said: “Come 2021, it is plain that Britain will still be locked in the EU customs union, and still with no plan for exit.

“That the tariff on that car coming into the UK – currently 10 percent – will still be set by the EU; and 80 per cent of that tariff will still be going to Brussels.

“How is that consistent with taking back control of our borders, or our money, or our laws, or an independent trade policy, or coming out of the customs union? It is not.”

Brexit Philip Hammond

Brexit: Philip Hammond will unveil a Plan B’ if Britain leaves the EU without a deal (Image: GETTY)

10am update: Health Secretary confident of good Brexit deal 

Matt Hancock is confident Britain will get a good Brexit deal with the European Union before it leaves the bloc in March.

He told BBC radio: “I am confident that we will get a good deal in the Brexit negotiations.

“The EU always negotiates right down to the last moment, I am confident that we will get a good deal.”

9.40am update: Pound falls to just above two-month lows ahead of Budget 

The currency dropped slighlt by 0.1 percent to $1.2817 on Monday morning against the US dollar, and was flat at 88.880 pence per euro.

Chancellor Philip Hammond will use his Budget speech in the Commons this afternoon to urged his divided Conservative Party to back the government’s plan for a Brexit deal, or risk jeopardizing a long-awaited easing of austerity.

He will make clear more spending will hinge on Britain agreeing a deal with the EU on the terms of the exit from the bloc in March.

Traders are also looking towards the Bank of England monetary polict meeting on Thursday.

Simon Derrick, chief currency strategist at BNY Mellon, said the pricing in sterling options markets showed increasing concern about the outlook for the pound heading into 2019 and ahead of the Brexit departure in March.

He said: “Since the October 17 EU summit, however, renewed outflows have begun to emerge as investors have become steadily more concerned about the lack of agreement between the EU and UK on the divorce deal

9.25am update: Brexit no-deal will not impact additional funding for the NHS to be announced in Budget 

Chancellor Philip Hammond warned he would have to rewrite his economic plans if the UK tumbled out of the EU without a deal.

But Health Secretary Matt Hancock told BBC Radio 4’s Today programme: “The extra £20 billion for the NHS is coming.

“We’ll see it in the figures today and that is irrespective of the deal that we get on Brexit.

“Now, I think that we’ll get a good deal on Brexit.”

Brexit Matt Hancock

Brexit: Matt Hancock said the “extra £20 billion for the NHS is coming” (Image: GETTY)

9.15am update: SNP warns against ‘absolute nightmare’ no-deal Brexit scenario 

SNP deputy Westminster leader Kirsty Blackman accused the Conservative government of being “far too focused on negotiating with itself”, claiming businesses were lacking certainty and trust in Theresa May’s capability to strike a deal with the EU.

Speaking to the Press Association, the party’s spokeswoman on the conomy said: “Businesses are implementing their plan B, some of them are onto implementing their plan C. We are so close to Brexit day and nobody has any certainty.

“People are not happy about the state of the negotiations, they are not happy particularly about the lack of certainty that there is and I don’t think there is any trust in Theresa May’s abilities to get this done.

“A no-deal scenario is an absolute nightmare scenario, I can’t think of a country in history that has brought such foreseeable economic harm on itself.

“I genuinely think that it will create a huge number of redundancies.”

9am update: Manufacturing body wants ‘significantly longer’ Brexit transition period

The chief executive of the EEF manufacturers organisation has called for a “significantly longer” transition period when Brexit leaves the EU.

Stephen Pearson urged the Government to recognize the risks to jobs and livelihoods that will follow the loss of the EU membership benefits while negotiations with the World Trade Organisation (WTO) are still in the early stages.

He said an extension to the transition period was now “vital”, adding: “As we have consistently said, successful international trade deals take years to negotiate.

“The Government’s hope that agreeing a tariff schedule with the WTO would be simple was naive. At a time of rising protectionism and the return of barriers to trade, it is no great surprise that other countries have refused to accept our ‘cut and paste’ short-cut.

“Many of our members have been planning on the back of repeated assurances that membership of the WTO and new trading deals with other countries would be struck quickly and easily.

“Now the Government must recognise that this strategy has failed and it must allow industry sufficient time to prepare for an uncertain global trading relationship.

“We must not give up all the benefits of the EU.”

8.45am update: Hammond to reveal PLAN B for a hard Brexit in this afternoon’s Budget

Philip Hammond will deliver his 2018 Budget this afternoon in the House of Commons and revealed he will unveil Plan B if Britain crashes out of the EU with a no-deal Brexit.

The Chancellor has vowed to “strike out in a new direction” and use “fiscal buffers” to boost the economy in the event of a hard Brexit, as he spoke on the eve of his 2018 Budget.

He said: “If the economy as the result of a no deal Brexit, or indeed because of something else that we haven’t anticipated, needs support over the coming months and years, I have the capacity to provide that support.”

But Mr Hammond insisted that was not the outcome he expected and he remained confident there would be an agreement with Brussels on the eve of his speech, which is expected to be his final Budget before Britain leaves the EU.

The Chancellor said: “Once we get a good deal from the European Union and the smooth exit from the EU, we will be able to show the British people that the fruits of their hard work are now at last in sight.”

BUDGET 2018 LATEST NEWS: LIVE UPDATES

8.30am update: MPs in plot to destroy May’s plan with ‘KILLER’ amendment for new vote

A group of MPs are plotting to scupper Theresa May’s Brexit plan by tabling an amendment demanding a second referendum as soon as she returns from Brussels with a deal.

Conservative, Labour and SNP remained backbenchers will join forces as they try to force the Prime Minister to hold a new vote.

They are plotting to table an amendment to demand another public vote on Brexit if and when she returns from Brussels with a deal.

This would leave Britain with two options – quitting the European Union with Mrs Mays plan, or remaining in the Brussels bloc.

It could prove to be a huge blow to the Prime Minister, who has repeatedly ruled out holding a second referendum.

But MPs leading the plot to thwart her Brexit plan, including Conservative MP Sarah Wollaston, Labour’s Paul Williams and the SNP’s Philippa Whitford, could pile the pressure on Mrs May’s to change her mind.

A senior Labour figure who is backing the move told The Observer: “There are some supporters of a second referendum who think the main push should come later, amid the chaos that would ensue from May’s deal failing to get through parliament or a no-deal.

“But we believe a killer amendment like this could be our only chance. We cannot afford to miss it.”