Irish border could get ‘buffer zone’ under new Brexit proposals

Northern Ireland could be given joint EU and UK status and a “buffer zone” on its border with the Republic, under new plans being drawn up by David Davis.

The scheme is understood to be under consideration as a potential way of breaking the deadlock over future customs arrangements ahead of a crunch summit of EU leaders on June 28-29.

But it was dismissed as “fantastical” by anti-Brexit campaigners, while Liberal Democrats described it as “like something out of Alice in Wonderland”.

Future customs arrangements are likely to be high on the agenda at a meeting of leaders of British industry with Theresa May and senior ministers to discuss the Government’s Brexit strategy at 10 Downing Street on Monday.

The Prime Minister has divided ministers into two working groups to try to find a means of fulfilling her twin pledges to take Britain out of the European customs union while keeping the Irish border open.

The two options currently on the table – a customs partnership backed by the PM which would see the UK collect tariffs on the behalf of the EU and a “maximum facilitation” scheme using technology to avoid border checks – have split Mrs May’s Brexit war cabinet down the middle.

And Brussels’ rejection of both schemes was underlined by chief Brexit negotiator Michel Barnier, who said neither was “operational or acceptable”.

Mr Davis is now considering a new “double-hatted” solution based on the model in place in Liechtenstein, which would allow the province to operate both UK and EU regulations at the same time.

A 10-mile wide “special economic zone” would be created along the 310-mile border, within which local traders could operate under the Republic’s trade rules.

Mr Davis’s Department for Exiting the EU did not deny that the proposal was under consideration.

A spokesman said only: “We have set out two viable future customs arrangements with the EU and work is ongoing to refine these.”