CBI customs union warning ‘absurd’

Brexit-supporting Cabinet ministers have rounded on Britain’s biggest business lobby group after it said that the UK had to stay in the customs union.

A senior aide to David Davis, the Brexit Secretary, mocked the Confederation of British Industry for being wrong on the EU for 30 years. Boris Johnson, the Foreign Secretary, said the claims by the CBI “made no sense”.

Carolyn Fairbairn, the director general of the CBI, will say in a speech today that businesses are “deeply apprehensive” and there has been “too much ideology, too little urgency” in the negotiations.

“There may come a day when the opportunity to fully set independent trade policies outweighs the value of a customs union with the EU,” she will say. “A day when investing time in fast- growing economies elsewhere eclipses the value of frictionless trade in Europe. But that day hasn’t yet arrived.”

Remaining a member of a customs union “for as long as it serves us to do so is consistent with the result of the referendum and would be good for EU firms too”, she will say.

The warning was rubbished by the ministers. Stewart Jackson, chief of staff to Mr Davis, highlighted a post on Twitter that pointed out the CBI’S mistakes on the EU, saying it was a “timely reminder”. The tweet pointed out how the CBI had backed joining the exchange rate mechanism in 1987 and joining the euro in 1999, and then backed remaining in the EU in 2016.

Mr Johnson said on Twitter: “Makes no sense for CBI to keep calling to stay in customs union. PM was clear in Florence speech we are leaving.

“Brexit means taking control of laws, borders, money, and trade. I’m confident British business can profit from the new opportunities.

“Staying in the customs union means effectively staying in the EU: the EU is a customs union. It means no new free trade deals, no new export opportunities, and no leading role in the WTO.”

Jacob Rees-mogg, the newly elected chairman of the European Research Group made up of around 60 Tory MPS, said: “We must have control of free movement of people as soon as we leave. This idea that we can let them carry on coming for another two years is absolutely absurd.”