-Cabinet row over free movement
Free movement of people, goods and capital has always been one of the main pillars of the European family. As the U.K. voted to leave the European Union last June, British politicians interpreted the referendum decision as a clear “demand for curbing immigration and ending the free movement of people”.
However, businesses and the City of London are anxious about this interpretation as they heavily rely on foreign skilled workers. Almost 79 percent of the U.K. economy is based on the services sector and there is no doubt over the need for a newly skilled and talented workforce from other countries. Despite the recent general election results, strong Brexiteers are pushing hard for a “hard Brexit”, which would give the U.K. the right to stop the free movement of EU citizens, curb immigration and have full control of U.K. borders. All of this rhetoric might sound good to the ears of the former leader of UKIP Nigel Farage, but it does not sit well with U.K. businesses, hoteliers, restaurant owners or even large financial corporations based in the City of London or Canary Wharf.
Last weekend, leaked news on internal talks among ministers also reveals that there is no cabinet-wide consensus on a transitional implementation period or on freedom of movement. According to the Guardian’s story, Chancellor Philip Hammond, Home Secretary Amber Rudd, the U.K. Prime Minister’s closest confidant, Damian Green, Secretary of State for Work and Pensions David Gauke and Secretary of State for Business, Energy and Industrial Strategy Greg Clark are among those likely to push the Prime Minister to accept that while free movement will officially end, there should be no immediate move to reduce immigration.
Hammond, speaking to the Sunday Times during his second visit to the U.S. suggested that free movement could continue for up to three years after Brexit. He also warned that “control of our own borders” was a key driver of the leave vote.
However, International Trade Secretary Liam Fox also said there is no cabinet-wide agreement for Hammond’s proposal.
Moreover, Iain Duncan Smith, the former Conservative leader, and key Brexit supporter also said, “Conservative backbenchers now wish cabinet members would practice what some are preaching and that they ‘transition’ from saying too much about Europe to saying nothing at all. This is a transition that should last up to two years.”
While U.K Prime Minister Theresa May is still on holiday, Hammond was put on the front line by saying that the U.K.’s relationship could look “similar in many ways” for some time after formally leaving the bloc in 2019. He has been supported by Rudd, who ordered an analysis of EU migration, but also made clear that EU citizens would be free to continue coming to the U.K. during the transition period, as long as they are registered.
On the other hand, Foreign Secretary Boris Johnson and the International Trade Secretary are reportedly supporting Hammond's plans for EU migration immediately after Brexit. There are even rumors that Johnson could resign due to ongoing disagreements in the cabinet. Since the June election’s unexpected results, there are talks suggesting an early election by autumn. Eventually, May will need to put her house in order to before getting back to the negotiation table with EU members following her return from holiday.