(Reuters) – Boris Johnson, the leading candidate to succeed Theresa May as Britains next prime minister, said he would withhold a previously agreed 39 billion pound Brexit payment until the European Union gives Britain better exit terms.
FILE PHOTO: Former British Foreign Secretary Boris Johnson gives a speech at the JCB Headquarters in Rocester, Staffordshire, Britain, January 18, 2019. REUTERS/Andrew Yates/File Photo
The EU has repeatedly said it will not reopen discussion of the Brexit transition deal it reached with May last year, which British lawmakers have rejected three times, prompting May to announce her resignation earlier this month.
May stepped down as leader of the governing Conservatives on Friday.
Johnson, a former foreign secretary in Mays cabinet, is popular with ordinary Conservative Party members, who will decide between the two candidates who come top in a series of votes by Conservative lawmakers over the coming weeks.
“I always thought it was extraordinary that we should agree to write that entire cheque before having a final deal. In getting a good deal, money is a great solvent and a great lubricant,” Johnson told the Sunday Times.
Britain is due to leave the EU on Oct. 31. If Parliament does not approve a deal – and the government does not ask the EU for another delay – there risks being major economic disruption from a disorderly departure.
The 39 billion pounds represents outstanding British liabilities to the EU, which would be paid over a number of years according to the withdrawal agreement negotiated by May.
Johnson also said border arrangements with Ireland should be settled only as part of a long-term agreement, rejecting a “backstop” which would avoid checks on Northern Irelands border but which Conservative lawmakers fear is a backdoor way of requiring Britain to continue to follow EU rules after Brexit.
The EU has said guarantees to keep the border open between Ireland and Northern Ireland are an essential part of the transition agreement.
Separately, one of Johnsons rivals, environment minister Michael Gove, said he would scrap the value-added tax (VAT) levied on most goods and services and replace it with a lower U.S.-style sales tax.