Brexit: Philip Hammond rejects claims of bribe to DUP
The chancellor said “that’s not where the discussion has been at all”, although he acknowledged that funding issues would come up in the forthcoming spending review.
Mr Hammond, who was involved in talks with DUP deputy leader Nigel Dodds on Friday, said the discussions had focused on preventing a regulatory border in the Irish Sea.
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Hide AdPersuading the 10 DUP MPs to back the deal is viewed as crucial by ministers as they believe allaying the unionists’ concerns about the Irish backstop will help swing Tory Eurosceptics behind the prime minister.
One option being considered is a “Stormont lock” written into law so that any new regulations imposed on Northern Ireland would either be adopted by the entire UK or not at all, the Sunday Times reported.
Mr Dodds is also reportedly again looking for a cut in air passenger duty, which is lower in the Republic of Ireland than Northern Ireland.
The government may also have to find another £1 billion to secure a further two years to the confidence and supply arrangement which underpins Mrs May’s minority administration in the Commons.
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Hide AdOn BBC’s Andrew Marr Show, Mr Hammond said: “I regard it as crucially important that we do not allow differences to grow up between Northern Ireland and Great Britain.
“And we’re looking for ways in which the government can reassure Northern Irish politicians about our clear intention to make sure that there are no such differences as we go forward, if the backstop ever had to come into force.”
He added: “This isn’t about money. It’s about a political assurance – well, look, we are coming up to a spending review and we will have to look at all budgets, including devolved block-grant budgets, in that spending review, of course we will.”
In a statement on Saturday, the DUP said: “We are in discussions with the government to ensure Northern Ireland is not separated out from the rest of the United Kingdom as we leave the European Union. Contrary to some reports we are not discussing cash.
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Hide Ad“There are still issues to be addressed in our discussions.”
But shadow chancellor John McDonnell said: “If Philip Hammond’s presence at the talks with the DUP is an indication that the Tories are offering the DUP another bung in return for their support for May’s Brexit deal, I am warning the PM that she is in danger of destroying all confidence in our political system.
“It will rightfully be seen by the British electorate as corrupt politics and will demean our political system in the eyes of the world.
“Who could ever again trust the probity of our system of government?”
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Hide AdMrs May will today continue efforts to salvage her Brexit deal amid further signs of pressure on her position.
Further talks are expected over the coming days with the DUP in the hope that they can be persuaded to relax their opposition to her deal if it is tweaked slightly.
On Friday, Mr Dodds described lengthy talks with senior ministers including the chancellor as “constructive” and said there was a “renewed focus” from the government on addressing their concerns.
Mr Dodds said: “We have had a constructive dialogue. Those discussions will continue over the coming period of time.”
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Hide AdThe prime minister is expected to bring her Withdrawal Agreement back for a third vote early this week despite its overwhelming 149-vote defeat last Tuesday.
Last week was a bruising week for the prime minister, with her Cabinet in open revolt as the focus on her leadership intensified.
The Daily Telegraph reported two senior Downing Street figures believe she should “fall on her sword” by setting out the timetable for her departure.
Last week, Tory MP George Freeman, a former head of Mrs May’s policy board, said “we need to choose a new leader” with a vision to “make sense of Brexit” and Conservative veteran Sir Christopher Chope said he would “seriously consider” voting against her in a Commons confidence motion.
Brussels has begun preparations for a possible delay to Brexit beyond the current March 29 deadline after MPs backed an extension to the Article 50 process.