Labour policy in disarray as date set for marathon Brexit debate

LABOUR’S policy on Brexit was in turmoil last night as Downing Street finally named the date when the Government will try to defeat 15 Lords’ amendments to its key legislation.

The House of Commons will spend more than 12 hours debating and voting on the amendments in a marathon session next Tuesday which is expected to go on into the early hours.

Theresa May is braced for one of the toughest battles of her premiership to date as she tries to avoid defeat over the most controversial amendments, including making membership of a customs union a negotiating objective.

However, with just a week to go until the debate, Labour Remainers are trying to persuade Jeremy Corbyn to change his policy on membership of the European Economic Area (EEA).

Labour currently opposes the idea of Britain being part of the EEA – the socalled “Norway option” – but there is renewed pressure on Mr Corbyn to change his mind after the Lords passed an amendment that could force the Government to pursue membership.

Chuka Umunna, the former Labour leadership candidate, is heading the charge to persuade Labour MPS to back the amendment, with up to 70 of his colleagues said to be prepared to defy Mr Corbyn by voting in favour of it.

Labour last night refused to comment on whipping arrangements for the vote, but party sources insisted that Mr Corbyn would not be changing his mind. Labour has said it wants to negotiate a “new, comprehensive UK-EU customs union”, suggesting that Mr Corbyn could whip his MPS to back the House of Lords amendment forcing the Government to ask Brussels for membership of a customs union.

Up to 15 Tory rebels are expected to back the amendment, leaving Mrs May in a precarious position. Yesterday, Julian Smith, the Chief Whip, wrote to all Conservative MPS reminding them that they were elected on a manifesto that pledged Britain would leave the single market and the customs union.

Meanwhile, it emerged that ministers are considering cross-border VAT

‘This is staying in the EU by stealth...if we allow the ECJ to have any say over us it will be like an iceberg’

arrangements that would mean Britain remaining under the control of the European Court of Justice after Brexit.

In a letter seen by The Daily Telegraph, Mel Stride, the Treasury minister, told Charlie Elphicke, the Dover MP, that the Government “aims to keep VAT processes after EU exit as close as possible to what they are now, providing the best continuity and certainty for businesses and individuals”.

One Cabinet source said: “This is staying in the EU by stealth. If we allow the ECJ to have any say over us after Brexit it will be like an iceberg, and when we leave the EU we will find that there are a whole load of other things beneath the surface that are also regulated by the ECJ.”