Freedom of movement between EU countries and the UK “has to stop”, Chancellor Philip Hammond has said.
Speaking in advance of a major speech by Prime Minister Theresa May setting out the Government’s approach to Brexit, he made it clear that the UK would end freedom of movement and enforce immigration controls.
The tough stance means the UK could continue to welcome migrant workers from EU countries, but it would have the power to stop them coming in if it chose.
And it means the UK is almost certain to leave the single market, which allows UK firms to export to EU countries without restrictions, although a new trade deal with the EU could be signed.
Speaking to German newspaper Welt am Sonntag, Mr Hammond said: “The message from the referendum is that we must control our immigration policy. So there will be a decision that the British government make about how we manage immigration from outside the UK, We would take the decision in the interest of the UK.
“But that does not mean that we would close our doors to European migrants coming to work in the UK. We have over three million European migrants working in our economy and we have full employment. So clearly we need people to come and work in our economy to keep it functioning.
“Therefore, we will operate in a rational and sensible economically driven way. But we must have overall control. At the moment, we don’t have any control, not any more than Germany does.”
Asked by an interviewer whether this “has to stop”, he replied: “That has to stop. That’s the message the British people sent on June 23rd.”
Downing Street says Mrs May will use the speech to set out the Government’s plan for the Brexit negotiations.
The Prime Minister will highlight the importance of building on common goals, such as protecting and enhancing workers’ rights, and call on the country to “come together” despite disagreements over Brexit.
She will say: “The overwhelming majority of people – however they voted – say we need to get on and make Brexit happen. Business isn’t calling to reverse the result, but planning to make a success of it. And the House of Commons has voted overwhelmingly for us to get on with it too.
“So the country is coming together. Now we need to put an end to the division and the language associated with it – Leaver and Remainer and all the accompanying insults – and unite to make a success of Brexit and build a truly Global Britain.”
In a boost for Mrs May, US President Donald Trump said the US would quickly sign a post-Brexit trade deal with the UK.
He told the Times newspaper: “I’m a big fan of the UK, uh, we’re gonna work very hard to get it done quickly and done properly — good for both sides. I will be meeting with [Theresa May] — in fact if you want you can see the letter, wherever the letter is, she just sent it.”
Mr Trump said: “Business is unbelievable in a lot of parts in the UK, as you know. I think Brexit is going to end up being a great thing.”
Business leaders say the Midlands economy remains strong.
Opponents of Brexit point out that it hasn't actually happened yet, but supporters point out that remain campaigners said the economy would suffer as soon as the vote took place and this prediction, at least, has not yet come true.
Data published by Black Country Chamber of Commerce shows that economic activity in the Midlands is outperforming the national economy.
Professor Julian Beer, Deputy Vice-Chancellor at Birmingham City University, said: “The apparent continued resilience of the regional economy in the wake of the Brexit vote is good news, with the area set to begin the New Year on a firm footing.
"Nevertheless, it is clear that investment in skills and infrastructure is needed to enable the region to remain competitive moving forward. Further research on the impact of Brexit on the region will be needed.
"As a major exporter, the West Midlands is heavily reliant on trade and investing in our future will ensure that we continue to thrive.”
