May faces reality check ahead of Supreme Court ruling

Theresa May has rejected accusations she wants to create a 'bargain basement' Britain in order to out-compete Europe for investment, as Boris Johnson threatened to undermine her efforts to build bridges ahead of crucial talks.
The Court is due to announce its ruling on TuesdayThe Court is due to announce its ruling on Tuesday
The Court is due to announce its ruling on Tuesday

EU leaders today moved to welcome the Prime Minister’s newly-revealed plans for negotiations, with Commission president Jean-Claude Juncker pledging to work with Britain to secure a “fair” deal.

But in a come down from Tuesday’s largely triumphant Brexit speech, Mrs May found herself fending off claims by Labour that her plans to make the country more appealing to business could lose the state up to £120 billion in revenue. She also faced warnings from a number of influential EU figures that negotiations will be “arduous” and Britain will not be allowed to “cherry pick” the best parts of a deal.

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The reality check for the Prime Minister came as the Foreign Secretary threatened to spark a row with EU negotiators over comments likening the French President Francois Hollande to a World War Two prison guard.

Echoing the Prime Minister’s warning to Europe about adopting a “punitive” approach to talks, he told reporters: “If Monsieur Hollande wants to administer punishment beatings to anyone who chooses to escape, rather in the manner of some World War Two movie, then I don’t think that’s the way forward.”

The perceived Nazi reference was condemned by a number of politicians, including the European Union’s chief negotiator Guy Verhofstadt who described it as “abhorrent and deeply unhelpful”. But a Number 10 spokesman sought to downplay the comments, claiming Mr Johnson was “making a theatrical comparison” and “in no way suggesting that anyone was a Nazi”.

Aside from the controversy, several key EU leaders set out their formal responses to Mrs May’s Brexit strategy, with Mr Juncker stating he wants “a fair deal with Britain and a fair deal for Britain”.

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The Luxembourg politician also denied reports that the Commission was “hostile” toward the UK, and said he would “do everything so that the negotiations reach a balanced solution”.

In contrast, the Maltese Prime Minister struck a more combatant tone, when he warned that any new deal for Britain “necessarily needs to be inferior to membership”. He added that negotiations would be “arduous” and “not a happy event”.

Back home in the Commons, Mrs May faced a backlash over her suggestion that she would be willing to cut tax to make a post-Brexit Britain more appealing to business. Labour leader Jeremy Corbyn accused her of pursuing a “bargain basement Brexit”, warning that if the Government reduces corporation tax “to the lowest common denominator, this country loses £120 billion in revenue”.

The Supreme Court also confirmed it would announce its ruling on the Government’s Article 50 case next Tuesday.

Responding to Labour, Mrs May argued her plans will bring “prosperity... and jobs” to the UK.