Theresa May: Punishing UK for Brexit would be ‘calamitous act of self-harm’ for EU

Theresa May - Image credit: Neil Hall/PA Wire/Press Association Images

Theresa May has warned EU leaders it would be a “calamitous act of self-harm” to punish Britain for Brexit as she threatened to walk away from talks if the deal on offer was not good enough. 

In a stern warning to Brussels the Prime Minister said the UK would be prepared to adjust its economic model to attract business to the UK if access to European markets is restricted after Brexit. 

Speaking in London this morning, she confirmed that Britain would leave the single market and would seek associate membership of the customs union after Brexit.

The Prime Minister also announced that both houses of parliament will get a vote on the final deal agreed between the EU and the UK.

And she said that ministers would seek a “phased” transitional deal to ensure Britain avoids a “cliff edge” scenario when the UK formally leaves the EU.

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In a major speech outlining her key Brexit plans, May shed light on her “plan for Britain” after facing widespread calls to reveal her Brexit negotiating plans ahead of triggering Article 50.

Citing warnings that the EU could seek to punish Britain, she said: “That would be an act of calamitous self-harm for the countries of Europe. And it would not be the act of a friend.

“Britain would not – indeed we could not – accept such an approach.

“And while I am confident that this scenario need never arise – while I am sure a positive agreement can be reached – I am equally clear that no deal for Britain is better than a bad deal for Britain.

“Because we would still be able to trade with Europe.

“We would be free to strike trade deals across the world.

“And we would have the freedom to set the competitive tax rates and embrace the policies that would attract the world’s best companies and biggest investors to Britain.

“And – if we were excluded from accessing the single market – we would be free to change the basis of Britain’s economic model.”

Customs union

Outlining 12 negotiating priorities for Brexit, she noted that full membership of the customs union prevents the UK from signing trade agreements with other countries.

But the Prime Minister left the door open to seeking an alternative arrangement heading into discussions, saying: “I want Britain to be able to negotiate its own trade agreements... I do not want Britain to be part of the common commercial policy and I do not want us to be bound by the common external tariff... but I do want us to have a customs agreement with the EU.”

She has pledged to trigger Article 50 by the end of March this year.

Single market

Theresa May confirmed for the first time that Britain would leave the single market after Brexit, saying that ministers’ ambition to control immigration was incompatible with the membership terms of the trading area.

“I want to be clear: what I am proposing cannot mean membership of the single market... It would, to all intents and purposes, mean not leaving the EU at all,” she said.

Rather than membership of the single market, May said she wanted the “greatest possible access on a fully reciprocal basis through a comprehensive free trade agreement”.

And Mrs May said the UK could continue to contribute to EU budgets on a sectoral or programme-by-programme basis, but the large annual contributions would no longer take place.

“There may be some specific EU programmes in which we might want to participate,” she said. “The days of Britain making vast contributions to the European Union every year will end.”

Vote for parliament

After months of uncertainty the Prime Minister confirmed that MPs and peers will get a vote on the final deal agreed between the EU and the UK.

It comes after a Government appeal to the Supreme Court against the High Court ruling that Parliament must have a say in the triggering of Article 50.

The Supreme Court is yet to rule on the case, but May’s announcement today signals that she expect for judges to rule in favour of the claimants.

“I can confirm today that the Government will put the final deal that is agreed between the UK and the EU to a vote in both Houses of Parliament before it comes into force,” she said.

She added: "There will be a vote for the British parliament when it comes the deal.

“If you think about it, the British Parliament voted overwhelmingly for this to be the choice of the British people, the British Parliament recently voted overwhelmingly effectively for us to get on with it and I'm sure Parliament will want to deliver on the views of the British people and respect the democratic decision that was taken."

Future of the EU

May said it would not be in Britain’s interest to see a “greater unravelling of the EU” – a day after US president-elect Donald Trump expressed hope that Brexit could lead to more countries quitting.

"Many fear that this may herald the beginning of a greater unravelling of the EU. Let me be clear: I do not want that to happen. It would not be in the best interests of Britain,” she said.

But she said that the EU “bends towards uniformity, not flexibility”, and David Cameron’s negotiations had illustrated that Brussels had not offered enough wiggle room to keep the UK in the bloc.

In light of this, she said that the EU also has a “lesson” to learn from Brexit, namely that it should “respect” and “cherish” differences among its member states and that officials should not be averse to reform.

She pledged that Britain would continue to be a “good friend and neighbour” to Europe following Brexit, maintaining close trade and security ties with the bloc.

Plan for Britain

Expanding on her “plan for Britain”, the Prime Minister laid out her vision for the UK after leaving the EU.

She listed school reforms, cutting the deficit, her industrial strategy, and the “preservation of our precious Union” as some of her domestic priorities in a bid for a “better deal for ordinary working people at home”.

“I want us to be a secure, prosperous, tolerant country – a magnet for international talent and a home to the pioneers and innovators who will shape the world ahead,” she said.

“I want us to be a truly global Britain – the best friend and neighbour to our European partners, but a country that reaches beyond the borders of Europe too.

“A country that gets out into the world to build relationships with old friends and new allies alike.

“I want Britain to be what we have the potential and ambition to be: a great, global trading nation that is respected around the world and strong, confident and united at home.”