No10 admits that neither customs plan will work
Miliband and his has-been pals team up to push the EU’s agenda
‘EU will exploit divisions’
A ‘CUSTOMS partnership’ with the EU will not work in its current form, No 10 told Tory MPs yesterday.
But Downing Street also highlighted problems with the alternative proposal of ‘ maximum facilitation’, favoured by the Cabinet’s Brexiteer ministers.
Theresa May used a series of meetings with backbench MPs to set out the customs debate that has left her Brexit ‘war cabinet’ deadlocked.
Sources at the presentations said No 10 chief of staff Gavin Barwell admitted that plans for a customs partnership – which was the Prime Minister’s preferred option – could deter foreign firms wanting to do business with the UK.
The complex scheme, described as ‘blue sky thinking’ by Brexit Secretary David Davis, would see the UK collecting EU import tariffs at the border and passing them to Brussels.
While firms would be able to claim rebates in cases where the UK set lower tariffs, Mr Barwell is said to have conceded that the administrative burden could be offputting for some businesses.
But he is also said to have warned MPs of problems with the alternative idea, so-called ‘Max Fac’, which would use technology to streamline customs checks.
MPs were told it would not fully solve problems surrounding the Irish border, where the PM has ruled out checkpoints and cameras.
Yesterday’s meetings were offered to all Conservative MPs, as Mrs May tries to reassure all sides of the party that she is trying to act in the national interest.
After introductory comments from the Prime Minister, Mr Barwell set out the pros and cons of the customs partnership and Max Fac options, shown side by side ‘like a price comparison website’, according to one MP who attended.
Mr Barwell said neither option would work ‘in its current form’ but that two Cabinet working groups were refining them in the hope of finding a solution.
Backbenchers were told not to expect any breakthroughs at this stage, as the working groups are expected to take weeks to draw up revised proposals.
One MP said the briefing was ‘equally weighted’. But a pro-Brexit MP said No 10 seemed to be in thrall to ‘ ridiculous scare stories’ about the threat of violence over the Irish border issue.
The 11- strong Brexit war cabinet, which blocked both options earlier this month, is due to meet today.
Pro-Brexit ministers fear that the customs partnership would lead to the UK staying in the customs union
THREE former Cabinet ministers yesterday launched a cross-party alliance to keep Britain in the Eu single market – claiming doing so would let Brussels ‘breathe a sigh of relief’.
David Miliband, Nicky Morgan and Sir Nick Clegg joined forces at a rice mill in Essex to demand continued close ties with Brussels even after Brexit.
Ex-Labour foreign secretary Mr Miliband insisted Brexit-backers had not voted to leave the customs union and single market, adding: ‘We’re stronger in close tandem with the Eu.’
He urged MPs to back a controversial amendment, passed by the Lords last week, which would keep Britain in the European Economic Area (EEA). This would see the uK effectively staying in the single market and having to accept free movement of workers.
Former Tory education secretary Mrs Morgan indicated she would rebel against Theresa May by voting to stay in the EEA.
Mr Miliband, who left frontline politics after losing the Labour leadership contest to his brother Ed in 2010, even claimed MPs’ intervention on the single market could help Brexit talks as it would clarify the Government’s withdrawal position. The former MP – now head of the New York-based International Rescue Committee aid agency – told BBC Radio 4’s Today programme: ‘There will be an enormous sigh of relief in Europe. The Europeans have sadly accepted that Britain is leaving the European union. However, they don’t want a weak Britain because they think that will weaken the European union.’
But ex-Tory leader Iain Duncan Smith said: ‘Why in heaven’s name should the British people listen to a man who flounced out of politics just because he lost the Labour leadership contest, flounced out of the country and ended up getting a highly paid job in New York?
‘He turned his back on the uK only now to turn up and lecture us about what happened during the referendum. He has clearly come back to do the commission’s business, which of course they would love because Brussels would dictate the rules and we would have to obey the rules without any say.’
It came as Nicola Sturgeon separately called for Britain to stay in the single market and customs union. The Scottish first minister said that keeping a link to Brussels was an ‘ obvious democratic compromise’ because the referendum had not been a landslide in favour of Leave.
Standing alongside Sir Nick and Mrs Morgan at the Tilda rice plant in Rainham, Essex, yesterday, Mr Miliband denied he was making a political comeback.
He said that he was baffled by Mr Corbyn’s opposition to membership of the EEA. A Norwaystyle relationship with Brussels would be a ‘safe harbour’ for the uK as it lost its status as a full Eu member, Mr Miliband suggested.
And he claimed rejecting the EEA would mean Britain was ‘driven to a hard Brexit’ impeding trade, and undermining employment and environmental standards.
Mr Miliband said: ‘I think there is a real onus on parliamentarians now, when the House of Lords amendment finally comes back to the House of Commons.
‘You have seen many Labour peers who know the value of loyalty talking about the essence of doing the right thing this time and my own view is that peers are ahead of the party leadership when it comes to this EEA issue.’
Asked if he had discussed the forthcoming EEA vote with his brother, who is still an MP, Mr Miliband said: ‘The golden rule that Ed and I have always had is that we work really hard to make sure that our private relationship remains private.
‘We are certainly in touch, we are in touch on family matters and of course we talk about politics.’
Sir Nick said there was ‘complete bafflement’ from Eu leaders about the uK’s approach.
On the Cabinet row over Britain’s customs deal with the Eu, the ex-Lib Dem leader, who lost his seat in last year’s election, said: ‘We are now debating two models, neither of which are remotely workable or acceptable to the rest of the Eu.’
‘Turned his back on the UK only to lecture us’