UK must pay Brexit bill if no trade deal struck, audit office head says

The head of the government’s spending watchdog has said the UK will have to pay up to £39bn for leaving the EU if no post-Brexit trade deal is struck.

Amyas Morse, who runs the National Audit Office, said if MPs approve the withdrawal agreement it will be legally binding whether or not trade talks succeed, the Guardian reported.

Appearing at the Treasury committee, Morse said: “As I understand this, the treaty, once approved, will pass into law in time for us to leave the EU, and then will become legally binding. Therefore the payments would fall to be paid no matter what, under international law."

Morse’s view is at odds with statements made by Theresa May and David Davis, the Brexit secretary, that the UK will refuse to pay the divorce bill if no trade deal is struck. On 24 April Jacob Rees-Mogg, the pro-Brexit Conservative MP, said the government should “ratchet up the pressure” on the EU by threatening to withhold the payment.

The withdrawal agreement will include an outline of a future trade deal but trade talks could break down after Britain leaves the EU. In those circumstances would still have to pay the EU, Morse said.