27/06/2016 Daily Politics


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Good morning and welcome to the Daily Politics.


The fallout from the UK's historic vote to leave


Chancellor George Osborne, still in the job - for


He says there's no need for an emergency budget,


and the country is in a position of strength.


Boris Johnson calls for healing and building bridges as he promises


Britain will still be able to trade freely with the EU.


Is he going to be the next Prime Minister?


And are his assurances enough?


And the referendum upheaval isn't restricted


Jeremy Corbyn remains defiant despite waves of resignations


Can he stay in the job, and for how long?


And we'll be packing all of that into just half an hour today,


as we've got a shorter programme for the next few weeks


And with us for the duration are two political big hitters -


Conservative MP Liam Fox and Labour MP Emma Reynolds.


So, if you thought the dizzying pace of political change following last


week's historic vote to leave the EU would slow down this week to give


you time to watch the tennis, then I'm afraid you can think again.


Chancellor George Osborne, who has been conspicuous


by his absence since losing the referendum, appeared early this


morning at the Treasury in an attempt to calm


During the campaign, he'd promised an emergency budget filled


with spending cuts and tax rises, but today he said


He said the UK economy was facing an "adjustment", but that the


country was ready to face the future from a position of strength.


It is already evident that, as a result of Thursday's decision,


some firms are continuing to pause their decisions


As I said before the referendum, this will have an impact


on the economy and the public finances, and there will need to be


Given the delay in triggering Article 50, and the Prime Minister's


decision to hand over to a successor, it is sensible that


decisions on what that action should consist of wait for


the OBR to assess the economy in the autumn, and for the new


But no one should doubt our resolve to maintain


the fiscal stability we have delivered for this country.


To companies large and small, I would say this: the British


We are highly competitive, and we are open for business.


So, that was Chancellor George Osborne.


Well, have his comments had the desired


effect and eased jittery financial markets?


The BBC's Business Editor, Simon Jack, can tell us more.


What is happening? The markets are down this morning, but not nearly by


as much as we saw at the end of last week. The FTSE 100, the 100 biggest


companies, is down just over 1%. If you look beyond that to the FTSE


250, these are more UK focused businesses. They are down another


4%, added to the ten plus at the end of last week. It's not total


carnage, it's not panic, but in some sectors we are seeing a real


battering, such as Barclays, down over 10% today. House-builders are


also down, Mike Taylor Wimpey. Clearly, people are thinking that


there is going to be less appetite to build, and those banks stocks


down for a combination of reasons, such as an interest rate cut. It


will push back the time they can pay dividends as well. They will also be


in the firing line if there is a downturn in the property markets.


Not carnage, but pockets of real damage. Do the comments from the


Chancellor calm things? The banks I have spoken to and the analysts were


a bit underwhelmed by what the Chancellor had to say. He didn't say


anything unexpected. He said we were coming from a position of strength.


He's been missing in action for a few days,


so he and Mark Carney have realised it falls to them to steady the ship


a bit, because the Prime Minister has resigned. The Chancellor has


come out and said, I am sticking around. It was interesting that he


said there would be no emergency budget yet. He's saying that there


will be no budget cuts and tax increases yet. He's waiting for the


OBR to have a look at the finances and the shape of the economy. He's


saying he's sticking around for now, no emergency budget yet, but one is


coming. What about investor confidence? It's pretty thin at the


moment. Lots of people are going to safe haven assets, things like gold,


things with big US exposure. Pharmaceutical companies are doing


quite well. Diageo has a lot of its earnings overseas and is not very UK


focused. The dollar is doing well. People are going for the usual safe


havens, which means that other than those, things are pretty skittish


out there. The FTSE 250 down another 4% this morning. Liam Fox, Brexit


has caused uncertainty, and certain sectors are really suffering, like


banking and property. It is inevitable there will be some


uncertainty. The Prime Minister has resigned. I was not expecting that.


I am not surprised that we have uncertainty. We have taken a


phenomenally difficult decision. I am not surprised to see this.


Perhaps the fact that the FTSE 100 is death -- is down less than 1% is


an indication of the fact that this is an adjustment and not serious


instability. What about in the weeks to come? It's damaging to the


economy. In the long-term, seeing a reduction in Stirling, the IMF would


say that would be helpful to Britain's exports. We have seen a


bit of the pound coming down. I think you will see stability


re-emerging in the coming days. No total carnage, says Simon Jack. And


that warning from the Chancellor before the referendum, that isn't


going to materialise? I'm glad to hear that, but I do think it was


pretty irresponsible from the Leave campaign to suggest that there would


be no economic impact should the decision be to leave. Liam and I can


agree that now what we need to do is have a plan in place to give the


markets and business more certainty. We want to see the economy come


through this. That's going to be very difficult. Boris Johnson and


others need to come clean with people that this isn't going to be


an easy process. It is going to be tricky. We need to try now to get a


plan in place. I think that the vote Leave campaign, and Boris Johnson


and Michael Gove in particular, should have been thinking about this


before last Thursday. We need to work out what we will do in terms of


adjustments in Whitehall, and re-establish a trade department. We


need to see negotiating unit set up in number ten to get our discussions


under way before we get to the Article 50 part, and for the House


of Commons today, I imagine both sides will want to see what


contingency planning was done in advance by the civil service. After


a Cabinet meeting this morning, David Cameron comes to the Commons


later today to talk about the results of the EU referendum.


It'll be his first appearance since he announced his


He's already made it clear he'll leave the negotiations


on the UK's new relationship with the EU to his successor,


Well, Boris Johnson, who of course led the Leave campaign,


is the favourite to take over and so his first big statement


This morning, we got a glimpse of his thoughts through his weekly


In it, he claimed that the Government would now be able


to "take back democratic control of immigration policy,


with a balanced and humane points based system",


though not how many people would be allowed into the country


But he also says that immigration was not the main reason most


people voted Leave - that actually the main issue


was control and the undermining of British democracy.


He promised that "there will continue to be free trade


and access to the single market", though he didn't say


whether conditions - such as free movement -


And he raised the possibility - but only the possibility -


that "the substantial sum of money" previously sent to Brussels


He dismissed Nicola Sturgeon's call for a second


saying there was "no real apetetite for one soon."


But he acknowledged that the 52-48 referendum win was "not


He said that the winning side much reach out, heal and build bridges.


Earlier this morning, he tried to do exactly that.


There has been a lot of confusion over the weekend about the status of


It is absolutely clear that people from


other European countries, who are living here,


All people want to see is a system that is fair, impartial and


humane to all people coming from around the world.


Also, obviously, people from the UK living abroad,


living in the rest of the EU will also have their rights completely


I just worry there has been a certain amount of confusion


Boris Johnson, sounding conciliatory. Is that because he is


worried? Are you all worried? You didn't think you would win, and


there is no plan? You have to be conciliatory. I argued right through


the referendum that we would continue to be the governing party,


and however many passions were ignited in the referendum, we'd have


to work together afterwards. I'm glad that that tone is coming to the


fore. We do have to get back to business as usual. There is a


political vacuum now, because the Prime Minister has resigned. He will


go in the autumn. What happens next? What is your road map? The 1922


committee will meet and telling a timetable. The choice of that


timetable is a very rapid one, that the Parliamentary element of that is


done by the 21st of July, or a slightly longer one, which was done


in 2005, which takes it beyond the party conference. But what is the


road map now, because there is a political vacuum until that takes


place? We need to look at the issues that are out there on trade, and on


diplomacy. Who should lead that? A range of people. We have a lot of


very good people, such as Peter Lilley, who was part of one of the


global trade rounds. He has great expertise. We need to get people


from politics, people from law, people who understand the European


mechanics, altogether, and it needs to be set up quickly. We need to get


moving on this. It is the stability and control of the agenda that will


give confidence to those watching the process. Are you a bit world by


it all? No. In the House of Commons, we need to see the preparations that


were made. I do not believe that no contingency planning has been done.


I find that absurd. We need to see what work has been done by the civil


service. And is it Labour's role to unite behind the government to make


sure that there is no vacuum that continues on in autumn? I hope that


Labour and the other parties will have a voice in the negotiations. In


the campaign, I stressed that I would like to see the employment and


environmental protection is being kept in place at a national level if


we are not guaranteed them at a European level. I hope there were


some contingency -- contingency plans done by the government. I am


concerned. Liam is striking a different tone, but to hear Boris


say there is no rush... It is not in our interest for these negotiations


to go on for years and years. Let's be under no illusions. Free trade


agreements are difficult. We don't want it to run for years and years,


because that wouldn't be good for the economy? Should we join the


single market? No. If we were to be in the single market, in the


position that Norway is, we would be back to the full and open Kolisi of


free movement of people, which is one of the things people voted


against. You can sell into the single market without being in it,


like the US and Canada. They do not have quite the same access. We need


to have an honest discussion. To have unfettered access to the single


market, we would need to have some sort of arrangement like Norway. In


my constituency, people were worried about immigration, so is it


realistic to suggest that we can have our cake and eat it? I don't


think it is. We need to have an honest discussion with the British


public about what can be achieved. If you want to be in the single


market, there is a price to play, and one of that is in -- is


unfettered migration. We have to look at the options available. We


have to get these talks under way. Before we trigger Article 50, we


need to know exactly what it is we are negotiating. What about what


voters were promised, or what they believed they were promised by the


Leave side? Let's look at immigration. Many voters will be


hoping that immigration will come down quickly. Will that happen in


the short-term? We cannot do that we leave the European Union.


Boris Johnson said immigration was not the main reason why people voted


to leave. Is he right? The issues of identity and controlled by


governments were a big part of that. It is important for people to


understand we are leaving the EU. We're not leaving right away. There


was an idea that we're going to fall off a precipice because we are going


to leave the next day. Many of us on the remaining side did not think we


would come out so quickly. There would always be a process of


negotiation. The question of debate would, -- was, how good would the


terms be? That is still up in the air. The Foreign Secretary said


losing access to the single market would be catastrophic. I do not


believe that. I think losing access to the single market would be


damaging to the economy, not least because banks and insurance


companies which operate out of London to save and can operate


across the EU because they are regulated and can do that. Some of


them now might move their staff to other parts of the EU. Banks are


already doing that? They are moving them to Dublin and Frankfurt. They


are withdrawing from London because they are in part of the EU. They are


rumours. Some jobs have moved from investment banks. The issue of past


sporting as well. What it means is any country that has regulatory


systems which are the same as the European Union can passport and it


will not make a difference to us whether we are in terms of being in


the EU or not. Would you promise that net migration would fall to


tens of thousands? It will. We have to get control of the non-EU. One


question which was addressed in the referendum is, why do we not have


control of the half we should? You're supposed to have control of


that is a government. One failure in government has been inability to


control that part of immigration. EU migrants here now, should they be


worried? No. What about people coming over here now? For the next


two years, migration will continue. We will not change that. People are


still -- we are still part of the European Union. After that, we get


control. The whole point of the referendum is, in the longer term,


we get control over things we do not have control over today. People


cannot have it both ways. They cannot say you're getting migration


of the next two years and we do not want seven break with the EU. If you


want stability, you need that transition. There has been a lot of


rolling back from the cup at a letter vote League campaign. Iain


Duncan-Smith -- Vote Leave campaign. They promised 350 million a week to


the NHS. Lots of people who are swayed by your campaign will be very


disappointed if you keep rolling back on these things. Are you going


to come clean with people I going to deliver on some of these promises? I


kept saying the tempo Maca is not a government. There will be money. --


the Vote Leave. Will it be on the NHS? It will be up to the Government


of the day. The temp macro poster said, let's give the NHS the money.


-- the Vote Leave. The argument was there would be about ?10 billion a


year available to any government, Labour, Conservative, to spend on


the priorities they want. I tried to make the point regularly during the


referendum, including on this programme, these were choices for a


future government. Boris Johnson stood in front of that bus night


after night people saw it on television screens. His running to


be Prime Minister of this country. The tension between Jeremy Corbyn


and many of his MPs has been well-known ever


since he unexpectedly swept to win But following the vote to leave


the EU, and amid accusations that he hadn't done enough


to try to secure a Remain vote, Mr Corbyn has been hit by a wave


of front-bench resignations aimed Yesterday started with the news that


Shadow Foreign Secretary Hilary Benn had been sacked from the front


bench, which led to a flurry of 11 resignations from his Shadow Cabinet


colleagues throughout the day. This morning, three junior


shadow ministers resigned. -- 13 junior shadow ministers have


resigned. Another has announced an intention to go if Jeremy Corbyn


does not step down. But Jeremy Corbyn has


still refused to step down, and today has announced


several replacements They include moving Diane Abbott


from International Development to Health, Emily Thornberry moves


to Shadow Foreign Secretary, and Pat Glass moves from the Europe


brief to Education. Among the new faces,


Corbyn loyalist Clive Lewis comes in as Shadow Defence Secretary,


and Cat Smith becomes the Shadow Secretary


for Voter Engagement This morning, Mr Corbyn met with his


deputy, Tom Watson, telling Labour leaders he had no authority left in


the Parliamentary party and faces a leadership challenge. Both


supporters and opponents of Mr Corbyn have been on the airwaves


this morning, making their position known.


This is not the time for the Labour Party to be


We have to hold our nerve, and we have to think very carefully,


for the sake of the country, as to what happens next.


You need 95 people to put up a proper opposition front bench


There's 15 gone already, and that doesn't include


the Parliamentary Private Secretaries as well,


people like Stephen Kinnock and so on, and I would be


amazed if Jeremy is able to fulfil all of that.


It may well be there's a vote of no confidence


He's the elected Leader of the Labour Party by party members -


So, no, Jeremy shouldn't resign at all.


Well, this battle over the leadership of the party


is really a struggle between many Labour MPs


who voted for Mr Corbyn in such large numbers.


The group, Momentum, set up to support Mr Corbyn,


is holding a demonstration this evening at the same time as MPs meet


to discuss a vote of no confidence in their leader.


And Sam Tarry from Momentum joins us now.


He is going to have to go, isn't he? Pressure is building. We have had


waves of resignation from the Shadow Cabinet. He is struggling to fill


all the positions. His deputy has said he has lost little authority.


It is a difficult situation, absolutely. What we will be facing


in terms of a situation where nearly every single trade union member, the


vast amount of trade union members and the vast amount of the Labour


Party membership, even if there has been some slippage in terms of


support for Corbyn, it will still be an overwhelming win for him in a


leadership contest. What worries me is people in the PLP who have been


resigning also knows that. What is the endgame? The irresponsible mass


of doing this at a time when the Tories are trying to punch


themselves into the face have decided they will do it. This is


crazy. Why is Labour doing this? There is concern that Jeremy did not


communicate with voters. A few weeks ago half voters did not know we were


campaigning to remain for that there is also a concern we do have a


disconnect with working class communities in the Midlands were my


own seat, and also in the north. There is concern that Jeremy does


not have the leadership skills to reach out to those people. I have


had a number of e-mails over the weekend from people who did support


Jeremy last and are now very disappointed with the lack of


passion and can pitch -- he showed join the referendum campaign. We


could lose very many seats. We could lose 30% of the support we had last


check, which was a bad result in itself. If there is a leadership


election, he will win again? We do not know that. I am a councillor in


Dagenham. Jeremy is in a good position, he is Eurosceptic but


remain position. That is where the vast majority of people were. People


talk about Jeremy Corbyn. The rot set in a long time ago. These


communities have felt abandoned because they felt there was an elite


politicians not listening to them and taking in their concerns. There


is a disconnect between the Labour Party in those communities. I agree


that it did start before now I did start before Jeremy. I do not think


Jeremy is in a position to reach out to those people. He is not reaching


out to those people now. You were waiting for an excuse to move on


Jeremy Corbyn? I wanted us to vote to remain in the EU. I slogged my


guts out for days and days and weeks and weeks. I wish we had had that


results on Thursday. Now everything is changed. The results were not as


bad as many would have expected. A more profound question, the


disconnect between the Parliamentary Labour Party and the Labour Party


outside Parliament, to the point where you can end up in a Catch-22


situation, which is not good for politics. There was a real danger of


the Labour Party splitting. They are two very separate movements. A


Blairite Parliamentary party and all socialists -- a more Socialist


Party. There is something about it being responsible to voters as well


as members. They are responsible to voters who voted them in. I think we


will still get the same result. If there is another left candidate on


the ballot paper, they would win as well. Who would you have replaced


Jeremy Corbyn? We are not in that place yet. We are going to have a


discussion tonight at a meeting of Labour MPs about whether we have


this motion of no-confidence. We have to debate that night and I hope


that vote will take place sometime this week. As Tom Watson said to


Jeremy coheres in a very difficult position now than he has lost


authority amongst many in the Parliamentary particles that if you


cannot fill the 95 positions to field a team against the Government


that puts the Labour Party in a very bad position. The party will not


split. If you look at the candidate standing against Jeremy, who would


have had a far, far worse result with some of those candidates


standing. They were clueless about how angry working class people were


in this country. Thank you very much.


resignation on Friday morning - it's hard to keep up


So, will it be Boris or anyone but Boris?


Well, the man we turn to at times like this is Alex Donohue


how are Boris Johnson's to looking? At the moment he is the favourite.


One horse is making rapid headway, Theresa May. Boris is proving


unpopular. He was odds-on and Theresa May was 4/ one foot she is


now 9/ four. Looking like a two horse race. All the momentum is with


Theresa May. We have Stephen Crabb at 10:1. His odds have been creeping


in all the while. Then there is a whole host of familiar faces. Liam


Fox in the studio with us today is 16:1. You are 25:1 on Friday. People


seem to think you are in with a chance. Then we have George Osborne


25:1. We'll be keeping an eye on him, seeing how he performs in his


speech this morning. One name is missing, isn't there? Michael Gove.


He was 5:1. That's it from us. We will be back tomorrow at 11.




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