SHOW US YOUR STEEL, MRS MAY
As the PM’s Brexit ‘war cabinet’ today debates a customs deal critics condemn as a sell-out to the EU ...
THERESA May was last night urged to ditch plans for an EU customs partnership because it could make Britain ‘a vassal state’.
She faces a showdown over the issue today at a crunch meeting of her Brexit ‘war cabinet’. Boris Johnson, Michael Gove, David Davis and Liam Fox will form a united front against the proposal, a source said.
The leading Brexiteers fear it would effectively keep the UK inside the EU’s customs union and
wreck hopes of an independent trade policy. ‘The four are unambiguous in thinking this is a terrible idea,’ the source said.
Mr Gove has described the plan as ‘bonkers’ and Dr Fox yesterday hinted he could even resign if it went ahead.
Mr Davis, who has dismissed the proposal as ‘blue sky thinking’, is also reported to have told friends he could quit. Aides played down the prospect of a walk-out however.
The four hope to ‘peel off’ Defence Secretary Gavin Williamson and new Home Secretary Sajid Javid, both former Remainers.
Jacob Rees-Mogg urged the Prime Minister to abandon the partnership plan and challenge Remainers in Parliament who want to keep Britain inside the customs union. The Eurosceptic MP said the partnership proposal, which has the backing of Chancellor Philip Hammond, would ‘result in the worst of all worlds and make us a vassal state’.
An influential group of MPs has submitted a 30-page report to Downing Street savaging the plan. The memo says it would ‘festoon the entire economy with burdensome controls, while crippling the ability of the UK’ to negotiate its own trade deals. Brexiteers fear Mrs May will side with Mr Hammond, Business Secretary Greg Clark and her chief Brexit adviser Olly Robbins, who are championing the idea.
The Prime Minister is expected to warn ministers the proposal is the only one that can resolve the Northern Ireland border problem and get through Parliament.
One Whitehall source said the PM was more concerned about the prospect of a defeat in Parliament by diehard Remainers led by former attorney general Dominic Grieve than by the risk of a mutiny by Tory Eurosceptics. ‘The bottom line is, she is more afraid of Grieve than she is of Iain Duncan Smith,’ the source said.
Another source said Mrs May could try to fudge the issue at today’s two-hour meeting to prevent destabilising the Government ahead of tomorrow’s local elections. But if a deal is signed off it could be approved by the full Cabinet as early as next week.
Cabinet sources played down the prospect of immediate resignations, suggesting Eurosceptic ministers would rely on Brussels killing off the proposal later in the year.
Opinion in Mrs May’s 11-strong Brexit war cabinet is finely balanced. Friends of Mr Javid acknowledge he has held ‘bracingly Eurosceptic’ views for years, but point out that he is a pragmatist who ended up backing Remain in 2016.
Mr Williamson is opposed to the UK remaining in any customs union. But allies suggested he could be swayed by his loyalty to the PM. Today’s meeting has been called to discuss the Government’s two options for future customs dealings with the EU.
The ‘new customs partnership’ would require officials to track the final destination of all goods entering the UK and hand over relevant tariffs to Brussels on goods ending up in the EU. It would also require alignment with EU regulations in some sectors.
The second option – known as ‘maximum facilitation’ – is a looser arrangement, which would use technology to streamline customs controls, particularly at the Irish border.
The EU has raised doubts about whether controls could ever be seamless enough to prevent the need for a hard border on the island of Ireland.
Some Eurosceptic MPs have warned that Mrs May could face a leadership challenge unless she opts for a clean break with Brussels. One former minister said: ‘This would be the final straw.’
Dr Fox yesterday said no form of customs union with the European Union could ever be acceptable. He told the BBC: ‘If we are in a customs union of any sort we will have less ability to shape Britain’s future.’
Unconfirmed reports earlier this month suggested that EU officials had dismissed both UK proposals. Mr Davis yesterday told the House of Lords EU committee: ‘The Commission did push back on both.’
Downing Street fears the Government’s hands could be tied if Remainers in Parliament rally round an amendment to the Trade Bill tabled by former Tory Minister Anna Soubry to keep Britain in a customs union.
Insiders believe the partnership idea could buy off enough rebels to avoid defeat.
Downing Street last night insisted the scheme could be delivered on time.
A No 10 spokesman said: ‘We are leaving the customs union and won’t be joining a customs union. We have put forward two proposals for addressing the customs issue in general and they will be discussed by the Government further.’