Tory mutineers plot with Labour over customs union

PM’S leadership threatened as Jeremy Corbyn moves to back Conservative rebels’ amendment to Trade Bill

TORY rebels are plotting with Labour to force Theresa May into accepting a post-brexit customs union with the EU in a move that presents a clear threat to her leadership. Jeremy Corbyn, the Labour leader, is on course to back an amendment tabled by five Tory “mutineers” which could keep the UK in a customs union after Brexit and limit its ability to strike free trade deals.

At least 15 pro-european Conservative MPS are expected to back the amendment to the Trade Bill, a key part of Brexit legislation, meaning that the Government is likely to be defeated in a vote that has been delayed until May.

On Thursday, Remainers and Brexiteers in the Cabinet agreed that Britain will continue to sign up to EU rules on a “voluntary basis” after Brexit to avoid a collapse in trade, enabling the UK to diverge from EU rules over time.

But Donald Tusk, president of the European Council, last night said: “It looks like the cake philosophy is still alive. From the very start it has been a key principle of the EU27 that there can be no cherry-picking or single market à la carte.”

The amendment has been tabled by Tory Brexit rebels including Anna Soubry, Nicky Morgan, Sarah Wollaston and Stephen Hammond. It has also been signed by Chuka Umunna, a proeuropean Labour MP.

It proposes the Government should be forced to “take all necessary steps” to secure a trade agreement which “enables the UK to participate after exit day in a customs union with the EU”.

The Prime Minister has been clear that Britain must not be in any form of customs union after Brexit so it can sign free trade deals with countries outside the EU. However, ministers admitted to The Daily Telegraph that they could be forced to accept the amendment. Michael Fabricant, a Eurosceptic Tory MP, said: “This is a total betrayal of what the 52 per cent voted for.

“It will stop us controlling our own borders and prevent us from having an independent trade policy. It will result in Brexit in name, but not in reality.”

Jacob Rees-mogg, a leading Tory Eurosceptic, said: “The amendment is entirely designed to frustrate the vote to leave. It would stop us doing trade deals and make the price of food and clothing higher.” Mr Corbyn is expected to announce on Monday that he supports staying in a customs union in a significant Brexit speech.

Ms Soubry said yesterday that she believed “many others” would add their names to the amendment. She said: “It’s about pragmatic solutions bringing people and business together, recognising voters rejected hard Brexit in June and that we’re only now having a proper debate about Brexit.”

Mrs May is to give a major Brexit speech on Friday in which she is expected to set out more detail of her vision.