Gove ally: May remains unclear on vision of EU

THERESA MAY’S Government still does not have a clear vision on Brexit, an ally of Michael Gove, the Environment Secretary, has said as he called for a compromise to end the “loud and angry debate” between Remainers and Brexiteers.

Henry Newman, the director of Open Europe and a former aide to Mr Gove, said Britain should be prepared to align itself to European Union rules on goods exports but leave itself free to decide its future on services.

In a report, Mr Newman’s think tank argued that giving up sovereignty on goods was a “price worth paying” for access to EU markets.

However, it added that the UK’S services sector was too big to be a “rule-taker”.

It came after Crispin Odey, a major Conservative Party donor, called for Mr Gove, who was a central figure in the Leave campaign, to be installed as leader because Mrs May had shown she “cannot carry Brexit through”.

Mr Newman said: “It’s nearly two years since the Brexit vote, but the UK Government still doesn’t have a clear vision for our EU relations, and Brussels is delaying the talks while refusing to discuss anything between a Canada-style deal and the Norwegian option.

“Meanwhile, we have spent months discussing a possible customs union which would neither resolve the Irish border nor guarantee frictionless trade.

“Open Europe’s blueprint recognises that the UK is too big an economy to be a rule-taker in areas like financial services, while accepting that we can get a very good degree of access in goods by giving up a limited amount of control.”

Lord Lamont, the Eurosceptic peer and former chancellor, gave his backing to the report and said that the services sector was “too important and too globally-focused to be simply a rule-taker from the EU”.

Mrs May’s Cabinet remains deadlocked over Britain’s post-brexit customs arrangements.

Eurosceptic ministers are strongly opposed to her plans for a customs partnership with the EU, which they fear could lead to a climbdown over Brexit.

However, pro-european ministers believe that alternative plans for highly streamlined borders backed by Eurosceptics risk damaging business.

The report, Striking a Balance: A Blueprint for the Future UK-EU Economic Partnership, said it was worth giving up some control over goods, arguing that in some highly regulated manufacturing industries, even US firms followed EU rules.

It said Britain should leave the customs union but must remain closely aligned outside.