Exclusive: The Government’s conference call to reassure big business - the full transcript
The Telegraph has obtained a leaked audio recording of a briefing that Philip Hammond gave 330 business leaders during a conference call in the aftermath of Theresa May's historic Brexit defeat on Tuesday.
Log-in or subscribe to read the full transcript, including Mr Hammond's account of how Article 50 could be extended and no deal could be taken "off the table":
Philip Hammond, Chancellor of the Exchequer
I won't conceal the fact that the scale of the defeat this evening was a disappointment but not entirely a surprise.
I think the important thing is that the Prime Minister has responded to the vote this evening with a clear strategy to move to reach out to opinion across the House of Commons and to commit the Government to listening to the views of others in an attempt to establish what is needed to build a consensus in Parliament that allows us to deliver a negotiated deal.
We have made clear this evening that we will facilitate a confidence vote in the Government. Jeremy Corbyn has duly tabled a vote of no confidence which will be taken tomorrow. We are confident we will win the no-confidence vote. We need to do that in order to establish the Government's credentials as it were to take this forward.
Once the no-confidence vote has been completed the Prime Minister will call senior MPs from across the House and indeed other party leaders and talk to them about their aspirations for a realistic way forward.
We are short of time and we have to be clear that pursuing what we call unicorns - ideas that would involve fundamental renegotiation of the deal we have done with the EU - is not going to work.
The withdrawal agreement will need to remain in place but there is flexibility to look at the terms of the political declaration on the future relationship.
The Government has already indicated that it is willing to accept amendments tabled by Labour members on workers' rights and environmental protections.
The Government is absolutely clear that a negotiated deal is the right way forward to deliver Brexit, honour the referendum result and avoid the very significant political damage and disruption to trust in the political system that would be done if we did not honour the referendum decision.
But to do so in a way that protects our economy, protects jobs and allows us to continue a very close partnership in both security and trade with our European neighbours.
I am going to try to preempt two obvious questions.
Could we extend the Article 50 deadline to give us more time?
The simple answer is that the EU would not consider the request for the extension of the Article 50 deadline unless or until we have a clear plan to go forward.
The sequence has to be first to reach out to opinion across the Commons to establish the terms on which we can build a majority for a way forward in the Commons.
If necessary go back to the EU to agree changes that are necessary to deliver that consensus. And at that time, if more time is going to be required, to negotiate that with the EU.
The second question is whether we can somehow take the option of no deal off the table.
Everyone on the call will be aware that a bill has been tabled today and amendments will be tabled on Monday by backbenchers from across the House which would have the effect of removing the threat of no deal.
I can simply as a parliamentarian say it is clear to me there is a large majority in the Commons that is opposed to no deal in any circumstances.
Stephen Barclay, Secretary of State for Exiting the European Union
I very much agree with the analysis that Philip has set out. In terms of the confidence vote both the DUP and ERG have said that they will be supporting the Government in that confidence vote.
There will be a very active programme now of reaching out to parliamentarians and EU leaders in the coming days.
What we saw tonight is what Parliament is against.
But that was very much a coalition of people that do not agree. One of the issues we will need to test in coming days is what Parliamentarians are for as opposed to what they oppose.
In terms of no deal, clearly there is a lot of uncertainty at present. Whatever deal is agreed by Parliament will still need to have a withdrawal agreement and a backstop and will also need to be ratified.
That is why Cabinet took the decision in terms of the no deal preparations that as a responsible Government we need to prepare, even though that is not where anyone wants to be.
We are working in coming days to get a clearer sense from leaders across the House, and also in terms of how that will inform the next phase and what reassurance we could give to Parliament in terms of how we would work with them as we flesh out the political declaration.
Greg Clark, Secretary of State for Business, Energy and Industrial Strategy
Perhaps I can start by saying to everyone on the line thank you for all the evidence and work you have done, especially contacting local MPs over the last few weeks as to what the reality you face is.
I am sure it is frustrating that not everyone has changed their minds accordingly, but I don't think that is wasted. I think in the days ahead your needs and the way you have communicated them will continue to be influential.
The second thing is that all of us completely understand the seriousness and urgency of the situations that you face.
The 29th March is a few weeks away. I know by talking to many of you who have already had to make decisions at the expense of more productive uses of the funds you have.
Our purpose in the next few days is essentially to reflect all the things you have told us. First that we can't have no deal, for all the reasons you set out completely consistently.
Secondly we need to achieve a deal that allows us at least as close a trading relationship with the rest of the EU as in the agreement that has been negotiated. That is vital.
The third is that we need to come to a conclusion quickly. This can't go on much longer. As Philip said it is evident that whatever the numbers tonight that was the first vote.
A lot of people had made prior commitments. But there is a very clear majority in the house not to have no deal, to have a relationship with the EU that will allow you to trade and prosper in future, and to bring this to a conclusion quickly.
The exercise and the commitment the Prime Minister made is to establish that, go beyond the Government and the Conservative Party and to put that group together and come back with a deal does work.
Jurgen Maier, chief executive of Siemens UK
Thank you very much for taking the time to give us this briefing. It is really, really important because I'm sure I'll be speaking for quite a few of us our international boards are expecting an update from us this evening who are obviously watching these events closer than they have ever been.
We obviously share your disappointment in the scale of the defeat this evening.
As you know we at Siemens are very much behind the withdrawal agreement, [and] can't for the life of us understand why [this] got such a heavy defeat. But we are where we are.
The two questions I have to try and give some confidence to my board is Philip, you said that bills have gone in today that in effect will start to make it impossible or certainly block the changes for a no deal.
How strong a confidence can I really give that we aren't going to go by default into a no deal.
My second question is can you say anything else about what you believe can be negotiated that would be substantially different and would allow cross-party consensus?