UK ‘doesn’t need’ customs union

British Minister of Finance Philip Hammond rejected a call from a leading employers’ group on Tuesday to keep Britain in a customs union with the European Union after Brexit, saying it was not needed to keep trade running smoothly.

Hammond, speaking to business leaders, said the government understood a set of post-Brexit customs priorities set out by the Confederation of British Industry (CBI), including avoiding delays at borders and no extra red tape.

“But we do not agree that staying in a customs union is necessary to deliver them,” he said, adding government was continuing to work on alternative options.

Earlier, CBI president Paul Dreschler said remaining in a customs union was currently the only workable option for Britain to avoid transport delays, administrative burdens for firms and a hard border between Ireland and Northern Ireland.

“It’s our Plan A, to choose to stay in a customs union with the EU, unless and until a better alternative can be found.”

Prime Minister Theresa May has previously rejected keeping Britain in a customs union with the EU. Brexit supporters are opposed to it as it would prevent Britain from striking trade deals with countries around the world.

But a source said London was considering a backstop plan that would apply the bloc’s external tariffs beyond 2020, alarming Brexit supporters. –