BREXITEERS’ TRADE VICTORY
‘Cretinous’ customs plan looks dead in the water after PM heeds Eurosceptic fury – but there’s no deal on alternative
THE controversial EU ‘customs partnership’ plan looked dead in the water last night following a Eurosceptic backlash.
Ministers clashed over the proposals during a tense three-hour meeting of Theresa May’s Brexit war cabinet yesterday.
New Home Secretary Sajid Javid and Defence Secretary Gavin Williamson both voiced ‘grave concerns’ about the proposal, which was described as ‘cretinous’ by Eurosceptics last week.
Whitehall sources said the plan, which critics claim would keep Britain in a customs union in all but name, would ‘not go forward in its current form’.
But ministers also failed to reach agreement on the alternative plan, known as ‘maximum facilitation’, which envisages using technology to minimise customs checks, particularly on the Irish border.
The Prime Minister, who had hoped to present a preferred option to the full Cabinet on Tuesday, instead had to order ministers and officials to conduct urgent work on both options.
They face a race against time to find an acceptable solution ahead of a crunch EU summit next month, when Mrs May hopes to give Brussels firm proposals so that trade talks can begin.
At yesterday’s meeting Boris Johnson, Michael Gove, Liam Fox and David Davis launched a drive against the customs partnership, in which Britain would collect tariffs to hand over to the EU. They warned the plan would damage Britain’s ability to strike trade deals and leave the UK subject to EU rules.
But critically, they were backed in their opposition by Mr Williamson and Mr Javid.
Both had supported Remain and were seen as swing voters ahead of the meeting, but by joining forces with Brexiteers they effectively killed off the plan.
No vote was held, but sources said the 11- strong committee was divided by six to five against the partnership. One source said: ‘The customs partnership has been killed off. It doesn’t have the support of the Brexit war cabinet and it is very hard to see how it could be resurrected.’
The outcome follows the departure of passionate Remainer Amber Rudd, who had been expected to back the customs partnership, and her replacement with Mr Javid on Monday.
Mr Javid switching sides effectively changed the balance of the committee. The decision was a blow to Chancellor Philip Ham- mond and Business Secretary Greg Clark, who argued in favour of the customs partnership.
One source said Mr Clark had been ‘close to tears’ as he warned ditching the plan would threaten jobs. Friends of Mr Hammond last night said he was ‘frustrated’ and did not see how the alternative plan could resolve the need for a hard Irish border.
The move follows a concerted push by Eurosceptics to strangle the customs partnership plan, which they had warned would wreck Brexit. The 60- strong European Research Group submitted a 30-page paper to Downing Street demolishing the plan.
They warned the ‘undeliverable’ plan would end up being ‘substantially the same as a full customs union with the EU’.
Jacob Rees-Mogg said there was ‘no question of an ultimatum’ from Tory MPs over the issue. But he said there was a widespread view that the plan was ‘deeply unsatisfactory’.
Sir Bill Cash, chairman of the European Scrutiny Committee, said the Eurosceptics’ paper seemed to have been pivotal, saying: ‘It does sound as if this analysis has had an impact and I hope the Prime Minister will now abandon the proposal altogether.’
Some MPs warned whips they could withdraw support for the PM if the plan went ahead.
And senior ministers, including Mr Davis, Mr Johnson and Dr Fox made it clear to No 10 that they could not accept the proposal, which Mr Gove described as ‘bonkers’.
The backlash led to crisis talks in Downing Street on Tuesday night to discuss the way ahead.
The customs partnership had been No 10’s preferred option, with one insider describing it as ‘intellectually perfect’.
Supporters claimed it would resolve the Irish border issue and stood a chance of gaining approval in Parliament, where ministers fear pro-Remain MPs could vote to stay in a full customs union.
But aides were forced to prepare the ground for a tactical retreat. At Prime Minister’s Questions at lunchtime yesterday, Mrs May referred to there being ‘a number of ways’ to resolve the issue, rather than just the two formally on the table.
Ahead of yesterday’s meeting, No 10 acknowledged the position was ‘evolving’.
Officials also warned ministers at yesterday’s meeting that neither plan was ready to be implemented by January 2021 when the Brexit transition finishes – raising the prospect of extending Britain’s customs union membership temporarily.