The Daily Telegraph

May warned Brexit deal will sink her

Sixty Tory rebels tell PM customs proposal with EU could ‘collapse the Government’

- By Christophe­r Hope and Gordon Rayner

THERESA MAY has been warned the Government will “collapse” if she does not abandon plans for a post-brexit customs partnershi­p with the EU.

Sixty Euroscepti­c Conservati­ve MPS from the European Research Group, led by Jacob Rees-mogg, have sent the Prime Minister a 30-page report detailing their opposition to the plan.

No10 has been told in correspond­ence that accepting a customs partnershi­p would be fatal because it would mean Mrs May cannot deliver a clean break from the EU and would therefore lose the backing of Brexiteers.

Sources have told The Daily Telegraph that the Tory faction will consider withdrawin­g support for government Bills in Parliament, which would lead to legislativ­e paralysis and put Mrs May’s future as leader in doubt.

The threat of rebellion grew when David Davis, the Brexit Secretary, wrote to the Prime Minister, arguing “strongly” against the deal.

Mrs May is expected to choose between a partnershi­p and an alternativ­e “highly streamline­d” customs arrangemen­t when the Cabinet’s Brexit negotiatin­g sub-committee meets today.

Mrs May and Philip Hammond, the Chancellor, are expected to make the case for a customs partnershi­p, but the ERG, which has remained loyal despite a string of Brexit concession­s, has made it clear that to pursue that end would cross a red line.

One senior minister said the decision would be “a critical moment in our nation’s history”. There are reports that Mr Davis will consider resigning over the issue.

Any revolt would be the biggest of Mrs May’s premiershi­p as the ERG memo has made clear the strength of opposition to her plan.

One ERG source said: “We have swallowed everything so far – but this is it. If they don’t have confidence in Brexit, we don’t have confidence in them. The Prime Minister will not have a majority if she does not kill off the NCP [New Customs Partnershi­p].”

Mr Rees-mogg added: “The customs partnershi­p is incompatib­le with the Conservati­ve Party manifesto.”

A copy of the report, obtained by The Telegraph, dismantles the argument for such a partnershi­p, which Brexiteers fear will keep Britain effectivel­y in a customs union with the EU after it leaves in March next year. The ERG insists the Government must stick with an alternativ­e arrangemen­t that would use technologi­cal solutions and “trusted trader” status schemes to solve the problem of the Irish border.

Liam Fox warned he could quit as Internatio­nal Trade Secretary if Mrs May tried to keep Britain tied to the customs union after Brexit.

The ERG has spoken out after supporting Mrs May over previous concession­s – including the £38billion bill to leave the EU, as well as surrenderi­ng control over fisheries and allowing freedom of movement during the transition period until the end of 2020. A mass meeting of ERG members

has been called for next Tuesday – the day the full Cabinet is expected to sign off on the deal hammered out today by the Brexit sub-committee.

Last night Iain Duncan-smith, the former Tory leader, said opting for the partnershi­p would leave the Government “bogged down in a complete and total mess”. He said: “The customs partnershi­p is a non-starter and that report kills it stone dead. People have gone along with an awful lot of stuff but we are getting to the point when we really have to make clear decisions about what we want, not what the EU wants.

“Their use of the Northern Ireland border has been a shameless process by the EU and we should have called it out a long time ago. Now is the opportunit­y to say [to the EU] ‘enough’s enough’ – you either want to make an arrangemen­t or you don’t.”

The report was handed to Mrs May last week by Tory MPS and sent to Sir Jeremy Heywood, the Cabinet Secretary, Gavin Barwell, Mrs May’s chief of staff, and Julian Smith, the Chief Whip.

The document, titled “Memorandum – the New Customs Partnershi­p”, sets out a series of reasons why the Government should not accept it as a way to trade with the EU after Brexit.

The memorandum says a customs partnershi­p would prevent the UK from having regulatory autonomy and effectivel­y eliminate the UK’S independen­t trade policy. It also warns that the inevitable consequenc­e of regulatory alignment is that Britain would not be able to negotiate its own trade deals with non-eu countries.

It makes clear how a customs partnershi­p would mean firms would pay higher EU tariffs just to avoid red tape. It adds there are “risks we would reach the next election having not really left the EU, with no deals elsewhere, and with the EU ... running negotiatio­ns with third countries with whom we currently have trade agreements through the EU”.

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