Johnson Refuses to Rule Out Suspending Parliament: Brexit Update

(Bloomberg) -- The two candidates competing to become U.K. prime minister faced the media on Sunday, with Boris Johnson once again refusing to rule out suspending Parliament to force through a no-deal Brexit. In a separate interview, his rival, Jeremy Hunt, reiterated that he would be prepared to take the U.K. out of the European Union without a deal.

Key Developments:

• Johnson says there is “cash available" for his spending plans
• Hunt says his tax cuts will allow him to boost spending, although no deal would delay his plans
• Theresa May's chief Brexit negotiator Olly Robbins has resigned and will leave government before the next prime minister starts, according to the Mail on Sunday

Fox Backs Time-Limited Backstop (11:56 a.m.)

Liam Fox, the International Trade Secretary who is backing Hunt in the leadership race, has said a time limit on the Northern Ireland backstop is the way to get a deal through Parliament.

Speaking on BBC Radio's Pienaar's Politics he said “if you think about where we are in common in the backstop, both the European Union, the U.K. and the Irish Government have always said this is a temporary arrangement. Well if it is temporary can we put a time limit on it?” he said, adding “that I think it has been the top element in stopping an agreement going through the House of Commons.”

Hunt Repeats No-Deal Warning (10:57 a.m.)

Hunt reiterated that he would be prepared to take the U.K. out of the EU without a deal, although he says he's the right person to get an agreement. He said Johnson's insistence that the U.K. must leave on Oct. 31 is a fake debate, but that the U.K. would leave sooner under his leadership.

Hunt Says No Deal Would Delay Spending Pledges (10:48 a.m.)

Speaking in a BBC interview, Hunt said his plans to cut corporation tax could help boost growth and unlock money for spending. He, like Johnson, said he could use the fiscal headroom in the Treasury to boost spending, although he admitted that a no-deal Brexit would mean he wouldn't have the money “at his fingertips,” and his spending pledges would be delayed.

Johnson Says He Will Get a Brexit Deal (9:23 a.m.)

In an interview on Sky's Ridge on Sunday, Boris Johnson said he would get a Brexit deal, but reiterated he was prepared to leave with no deal if necessary.

“We will get ready, in a very sensible and sober way, to come out on Oct. 31, with no deal if we absolutely have to,” he said. “But we will get a deal with our friends and partners.”

Johnson also took responsibility for the vote to leave, and said he was able to “lead us out of this mess.”

Johnson Refuses to Rule Out Suspending Parliament (9:09 a.m.)

When pushed in the Sky News interview, Johnson once again refused to rule out suspending Parliament to push through a no-deal exit, although he said it wasn't something he liked the idea of. That's a repetition of a stance he took on Friday.

Johnson Says “Cash Available" for Spending Pledges (9:02 a.m.)

Johnson said there is cash available to fund his proposals for tax cuts and higher spending on education and policing. In the Sky News interview, Johnson said there was “headroom available" in the Treasury for his plans, and argued that “sensible tax cuts" would boost growth and revenue.

He also said he was prepared to increase borrowing to “finance great infrastructure projects.”

Earlier:

May Is Resigning as U.K. Premier, and She's Not Going Quietly
U.K. Candidates Hire Teams for Tough Fight to Leave EU: Times
Theresa May's Chief Brexit Negotiator Has Resigned: Daily Mail

To contact the reporter on this story: David Goodman in London at dgoodman28@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, James Amott, Amy Teibel

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