https://www.ft.com/content/e6f2cb52-1918-11e9-b93e-f4351a53f1c3
Philip Hammond sought to reassure business leaders on Tuesday night that a no-deal Brexit could be blocked, while also raising for the first time the possibility of a delay to Article 50.*
Speaking on a conference call alongside business secretary Greg Clark and Brexit secretary Stephen Barclay, the chancellor said the government would now seek to build a consensus in parliament. “We have to reach out to MPs in the Commons first,” he said. “There is a large majority in the Commons that is opposed to no-deal.”
Mr Hammond said the government would not put up any “obstacles” in the way of Nick Boles, a former minister, who has proposed that the Commons liaison committee — made up of the chairs of the other select committees — could oversee attempts to find a way through the political morass.
The Boles amendment is controversial with Eurosceptics because it would involve a delay to Article 50 and would effectively block a no-deal Brexit. Mrs May wants to keep a no-deal exit on the table to press MPs into falling into line behind her deal.
Mr Hammond and Mr Clark told business leaders there was a majority in parliament against a no-deal Brexit and that the Boles amendment would provide a mechanism for MPs to block such a departure.*
But Steve Varley, chair of EY UK, sounded unconvinced by the reassurances about no-deal: “Based on advice from the chancellor on a briefing call tonight we will continue to advise our clients to plan for a no-deal Brexit,” he told the Financial Times.
There are no more words to describe the frustration, impatience, and growing anger among business after two and a half years on a high-stakes political rollercoaster ride that shows no sign of stopping
Adam Marshall, British Chambers of Commerce
Meanwhile, the chancellor set out the sequencing by which Article 50 could be extended, delaying Brexit. He said the EU would not consider it unless and until the government had a clear plan — drawn up by MPs of various parties — that would have to be agreed before an extension could be requested.*
The government was in no mood to consider “unicorn” requests, he added.
One person on the call said it felt like a substantial shift in the government’s position on delaying Brexit: “It sounded like ministers changing from no extension to extension,” he said.*
Mr Hammond’s words were echoed by Mr Clark, although Mr Barclay struck an entirely different tone, suggesting, according to some on the call, that he believed a harder Brexit could be one way to win round backbench Tory support. “Barclay still wants no-deal on the table for negotiation purposes,” said one attendee.
Earlier in the evening, business leaders expressed dismay after Theresa May’s Brexit pact was mauled by parliament, opening up the prospect of further political chaos.
Adam Marshall, head of the British Chambers of Commerce, said: “There are no more words to describe the frustration, impatience and growing anger among business after two and a half years on a high-stakes political rollercoaster ride that shows no sign of stopping.”
Stephen Phipson, chief executive of the EEF manufacturers organisation, said business was suffering from “impossible uncertainty” because of “parliament’s pantomime”.
Carolyn Fairbairn, director-general of the CBI, said companies believed that no-deal was “hurtling closer” with every passing day. “A new plan is needed immediately. This is now a time for our politicians to make history as leaders,” she said.*
Many business groups had backed the deal, albeit without any great enthusiasm, in order to end a prolonged period of uncertainty for UK plc.*
Can May soldier on in spite of Brexit rejection
Iain Anderson, managing director of Cicero, a public affairs company, said it was vital that the government prevented a no-deal situation. “No business wants to see this happen and government now needs to work with parliament to ensure we rule this out and give business certainty,” he said.*
Miles Celic, chief executive of TheCityUK, which represents the financial services industry, said the vote would “depress business confidence”. “The lack of clarity on the path to an orderly Brexit risks disruption and financial instability on both sides of the Channel,” he said.
The conference call between business leaders and executives lasted for about 50 minutes. Mr Hammond said the government was still planning to use the withdrawal agreement as its central policy, while changing the “political declaration” which guides future arrangements with the EU.
Asked about a second referendum, the chancellor warned that the last one took 13 months from start to finish, there would be challenges in setting the question, and it would be difficult given*the European elections in May.
Instead, the priority was for parliament to “crystallise” its views: “We need to understand where the weight of opinion of parliament is,” he said. “We now know what parliament is against . . . we now need to understand what parliament is for.”
