Brexit news – live: Boris Johnson warned six months of port ‘mayhem’ ahead in 2021, even if trade deal agreed

Governor’s no-deal warning in sharp contrast to Sunak’s ‘nonchalance’

Some reaction now to Bank of England governor Andrew Bailey’s warning that the economic damage caused by a no-deal Brexit would be worse than the pandemic.  

The FT’s former editor Lionel Barber said he found it strange Bailey’s warning was not making too many headlines. “Surreal too that the (likely) deal will be Hard Brexit and there will be barely a peep.”

The Times’ leader writer Simon Nixon said: “Even more amazing given the greater long-term damage of no deal Brexit that Rishi Sunak nonchalantly claimed on Sunday not to be bothered about it.”

No 10 plans ‘new law to cut overseas aid’

Could the planned cut to the foreign aid budget become permanent? Boris Johnson and Rishi Sunak are under pressure to explain just how often the plan to slash aid spending from 0.7 per cent to 0.5 per cent.

Although it was thought to be a temporary proposal to help pay for the cost of the Covid recovery next year, the BBC reports that No 10 wants to pass a new law to free ministers up from strict rules on aid spending – raising fears the reduction could be indefinite.

Chancellor Rishi Sunak has been busy reassuring investors this morning, telling them that he was determined that the UK would remain a global leader for asset management after Brexit.

“We’re beginning a new relationship with the EU. And as we do so, we are determined that the UK will remain a global leader for asset management,” he told a conference organised by The Investment Association.

Not good news for Keir Starmer’s “under new management” agenda. Labour’s left-wing members are said to have just staged a walk-out at the first virtual meeting of the new National Executive Committee (NEC). Margaret Beckett and Alice Perry were elected as chair and vice-chair.

Haulage chiefs have claimed there will be “mayhem” at Holyhead port when the Brexit transition period ends, regardless of whether there’s a trade deal or not.

The Irish Road Haulage Association (IRHA) said the first six months of 2021 would be “terrible” because the port hasn’t been properly prepared for the changes. Holyhead is the UK’s second largest “roll-on roll-off” port after Dover, and carries around 1,200 lorries and trailers a day from north Wales to Ireland.

“After the deadline and UK Brexiting, the decisions still won’t be made,” said the IRHA’s Eugene Drennan. “They’ll unfold as the problems appear. That leads to a certain degree of mayhem … you’ll have a lot of anxious moments.”

He added: “Even though it’s called the transition period, there has been no transition.”

Michael Gove, the minister in charge of planning, said last month that the UK was “increasingly well-prepared” for the end of the transition period.

Senior MEPs have suggested they could still veto a Brexit trade deal if it doesn’t offer a “sufficiently balanced” compromise.

The influential MEP Christophe Hansen, who sits on the trade committee, said: “If there is a deal, I believe it will be sufficiently balanced that the European Parliament can give its consent. Otherwise, there will be no deal. Michel Barnier knows very well what we expect from him.”

Bernd Lange, the parliament’s trade chief, said: “It’s already five past midnight. We need a text, otherwise ratification and democratic scrutiny by the European Parliament will be a farce.”

A reminder there’s still a long way to go, even if Michel Barnier and David Frost forge an agreement in the coming days. A free trade deal would still need to be approved by national leaders from the EU27, MEPs in the European Parliament – and national parliaments across the bloc.

Britain faces a historic winter – with the Brexit transition and vaccine roll-out – but it hasn’t stopped speculation at Westminster about a cabinet reshuffle early next year.

The Times columnist Rachel Sylvester has offered some gossip, predictions and suggestions for Boris Johnson – claiming Michael Gove is “being lined up” to replace home secretary Priti Patel as home secretary.  

Sylvester thinks Sajid Javid could make a comeback as foreign secretary, and suggests Dominic Raab could head over to the Cabinet Office. Gavin Williamson? He is said to be facing the chop as education secretary.

Health secretary Matt Hancock has said he hopes damaging social distancing measures designed to restrict the spread of Covid-19 can be lifted after Easter, Whitehall editor Kate Devlin reports.

The roll-out of a coronavirus vaccine should signal that life could go back to "normal" by then, he added. 

Andi Fox, outgoing chair of Labour’s NEC, said members on the left of the governing body felt they had "no option" but to walk out.

She tweeted: "Last meeting as chair of the NEC. The left grouping felt they had no option but to walk out … The undermining of the process of the Nec, censoring debate and ignoring our process has to be opposed."

It comes after the newly-elected leader of the party’s youth wing said officials from party head office had demanded the removal of a statement criticising Starmer’s suspension of Corbyn from the parliamentary party.

The chancellor is preparing to make his latest update on the government's spending plans on Wednesday and has promised he will not usher in a new era of austerity.

Rishi Sunak has made more big announcements in eight months than some chancellors do in several years. Unlike his previous visits to the despatch box, this one will not focus on emergency coronavirus support measures. Instead he will detail day-to-day budgets for Whitehall departments in 2021/22.

Ben Chapman looks at what we can expect: