In a swift reaction to the seemingly speculated threat by the
European Union against Britain with regard to the EU single market, Chancellor
Philip Hammond has issued a strong warning to the EU that Britain will “not
going to lie down” if trade tariffs are imposed against the UK by the EU.
According to Hammond’s statement, the UK may retaliate such
a move by drastically reducing corporate taxes.
During an interview with the German Welt am Sonntag, Mr
Hammond stated that: "If we have no access to the European market, if we
are closed off, if Britain were to leave the European Union without an
agreement on market access, then we could suffer from economic damage at least
in the short-term.
"In this case, we could be forced to change our
economic model and we will have to change our model to regain competitiveness.
And you can be sure we will do whatever we have to do.
"The British people are not going to lie down and say,
too bad, we've been wounded. We will change our model, and we will come back,
and we will be competitively engaged."
Mrs May is billed to announce the UK’s readiness to leave
the single market in a speech on Tuesday. Her so-called red lines in the upcoming Brexit
negotiations are an end to free movement and lifting the bar to starting trade
talks with other countries before breaking with Brussels.
Nonetheless, former UKIP leader Nigel Farage while speaking
to Sky News said he was "yet to be convinced" by Mrs May over Brexit.
Speaking to the Sophy Ridge on Sunday programme, the MEP
said : "I'm quite certain Theresa May will do what she always does - sound
very reassuring, she will look to be very much in control, saying all the right
things and people like me will say it sounds great but why is it taking so
long?
"When it comes to immigration, in particular, which she
is highlighting, this is coming from the person who was home secretary and
failed completely.
"I'm yet to be convinced, I have to say."
In the meantime, Labour leader Jeremy Corbyn blamed the PM
of chasing "an extremely risky strategy", taking the UK in "the
direction of a bargain basement economy".
In his criticism to Mr Hammond's comments, he told the BBC's
Andrew Marr show: "It seems to me a recipe for some kind of trade war with
Europe in the future. That doesn't really seem to me a very sensible way
forward."
Mr Corbyn further said: "She (the PM) appears to be
heading us in the direction of a bargain basement economy on the shores of
Europe where we have low levels of corporate taxation, we will lose access to
half our export market.
"It seems to me an extremely risky strategy."
Also speaking, Liberal Democrat leader Tim Farron told the
BBC's Sunday Politics that "a hard Brexit is not the democratic choice of
the British people".
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