U.K.'s Hammond to Quit If Johnson Becomes Premier: Brexit Update

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U.K. Chancellor of the Exchequer Philip Hammond said he’ll quit his post if Boris Johnson wins the Conservative Party leadership contest on Monday, because of his own opposition to a possible no-deal Brexit on Oct. 31.

Key Developments:

Michael Gove set for more responsibility in Johnson-led governmentHammond says he’ll quit on Wednesday if Johnson wins leadership contestDefense Minister Tobias Ellwood says U.K. looking at options on Iran

Hammond Says He’ll Quit if Johnson Succeeds May (10:45 a.m.)

Chancellor of the Exchequer Philip Hammond said he plans to quit his post on Wednesday if Boris Johnson beats Foreign Secretary Jeremy Hunt in the race to succeed Prime Minister Theresa May. In a BBC TV interview, he cited Johnson’s demand that members of his government should accept the chance of a no-deal Brexit on Oct. 31.

“That is not something I could ever sign up to,” Hammond said. “It’s very important that a prime minister is able to have a chancellor who is closely aligned with him in terms of policy, and I therefore intend to resign to Theresa May before she goes to the palace to tender her own resignation on Wednesday.”

Asked if he’d also quit if Hunt were to pull of a surprise and beat the favorite, Hammond suggested he wouldn’t, saying “Jeremy’s position is more nuanced and I haven’t heard him express clearly a requirement for a sort of loyalty pledge around the Oct. 31 no-deal exit.”

Ireland Pushes Back Against Johnson Proposals (10:30 a.m.)

Irish Deputy Prime Minister Simon Coveney on Sunday pushed back against a number of Brexit positions espoused by Boris Johnson. In a BBC interview, he said Ireland isn’t prepared to renegotiate the Brexit withdrawal agreement negotiated by Theresa May and won’t drop the Irish backstop provision in it.

“If the approach of the new British PM is that they’re going to tear up the withdrawal agreement then I think that we’re in trouble,” Coveney said. “It’s important to say very clearly if respectfully that the facts don’t change around Brexit.”

Coveney also said Johnson’s suggestion to keep no-tariff and no-quota trade after a no-deal Brexit by relying on the World Trade Organization’s GATT treaty isn’t a “viable option at all.” He did say, however, that Ireland is prepared to countenance a different vision of the future relationship between the U.K. and EU than that advanced by May. Ireland would also look at realistic options for alternative arrangements to ensure frictionless trade at the border with Northern Ireland.

U.K. Looking at ‘Options’ on Iran: Defense Minister (9:15 a.m.)

The U.K. is looking at “a series of options” on how to deal with the situation in Iran, Defense Minister Tobias Ellwood said on Sunday, adding that Britain wants a “professional relationship” with the Middle East nation.

“We’ve seen a ratcheting up of tensions in the Middle East,” Ellwood said in a Sky News interview. “We need to try and de-escalate this.”

Ellwood also said the U.K. is “absolutely committed” to maintaining a military presence in the Persian Gulf and keeping the Strait of Hormuz open. He warned the U.K. needs to invest more in defense, including the Royal Navy. “That’s something the next prime minister will need to recognize,” he said.

Brexit Mustn’t Detract from Iran: Former Navy Chief (Earlier)

Alan West, a member of the House of Lords and former chief of naval staff, warned the next prime minister that there’s a “very real risk” of war in the Middle East and that they cannot ignore the situation in the Persian Gulf.

“Whoever the next prime minister is, he is going to face a major international crisis as soon as he is in post,” West wrote in The Observer. “It cannot be ignored because of Brexit.”

West said the U.K. should make clear to Iran that while up until now Britain has tried to persuade the U.S. to ease sanctions on the middle eastern nation, it will now back stronger sanctions unless Iran releases the British tanker.

Coveney: Ireland Will Engage with Next U.K. Premier (Earlier)

Irish Deputy Prime Minister Simon Coveney said his country will “work closely” with the next prime minister to safeguard common interests. Writing in the Sunday Times, he said Ireland’s one red line is to ensure the peace process in Northern Ireland isn’t put at risk. He warned of the dangers of a no-deal Brexit, which he said would “cause huge damage to us all.”

While Coveney said the withdrawal agreement negotiated by Prime Minister Theresa May isn’t up for negotiation, he extended an olive branch to the new leader by stressing that Ireland’s goal remains a future relationship with the U.K. that renders “unnecessary” the so-called backstop — the part of the deal that both candidates say needs to be dropped.

Gove Set for Cabinet Promotion under Johnson (Earlier)

Both the Sunday Times and the Sunday Telegraph report that Boris Johnson’s one-time nemesis Michael Gove, who scuppered his bid in 2016 for the party leadership, is set for a promotion if Johnson wins the leadership contest. The Sunday Times says the environment secretary may be put in charge of the communities department, with responsibility for increasing housebuilding. The Telegraph suggests he may be given added responsibilities for climate change while staying in his current role.

To contact the reporter on this story: Alex Morales in London at [email protected]

To contact the editors responsible for this story: Tim Ross at [email protected], ;Andrew Davis at [email protected], Lars Paulsson, Sam Unsted

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