May faces Cabinet revolt against ‘softest Brexit’
‘Eurosceptic Cabinet ministers feel like they haven’t been listened to by Downing Street’
THERESA MAY is facing an “almighty row” with Eurosceptic Cabinet ministers at Chequers this week amid accusations that she is pursuing the “softest Brexit possible”.
It emerged yesterday that the Prime Minister’s so-called “third way” would revive key parts of her customs partnership plan, which Eurosceptics fear will compromise Brexit.
The plans are expected to mean Britain enters into a single market on goods with the EU, will collect tariffs on the EU’S behalf and potentially open the door for a European Court of Justice role in arbitrating trade disputes.
A Cabinet source told The Daily Telegraph: “This doesn’t work, it is a fiction designed to keep us in the EU and single market. It’s just the customs partnership dressed up with another name.”
A Whitehall source added: “Eurosceptic Cabinet ministers feel like they haven’t been listened to by Downing Street. They are wondering what on earth all the debate has been about if they are just going to be ignored.”
However, a Government source said: “The Prime Minister has been absolutely clear we are leaving the single market and customs union and will have the ability to strike free trade deals. That is far from the softest possible Brexit that some are suggesting.”
The source insisted that in the “vast majority” of cases Britain would not have to collect tariffs for the EU.
It also emerged that the official Leave campaign will be sanctioned by the Electoral Commission after an investigation found it broke electoral rules. Vote Leave sources accused the watchdog of an “unfair and political” investigation and will mount a legal challenge. It is likely to fuel calls by Remainers for a second referendum.
The Prime Minister’s plans are likely to lead to disagreements at Chequers, her rural retreat, on Friday. A Cabinet source said: “It feels like the softest Brexit possible, there will be an almighty row.”
On Monday, Downing Street said it had come up with a new plan for Britain’s post-brexit customs arrangements after months of arguments in Cabinet.
Eurosceptics have rejected a customs partnership and instead want to see a “maximum facilitation” plan, which would rely on technology and trusted trader schemes to avoid a hard border in Northern Ireland. However,
the Prime Minister’s “third way” bears striking similarities to the customs partnership. Under the plans, the UK would leave the customs union, a red line for Mrs May, but remain signed up to the EU’S common external tariff, with exceptions for trade deals signed with countries outside the EU. The country would also aim to join a single market in goods with the EU to avoid customs checks on the Irish border.
The Cabinet remains divided over whether it should attempt to form a similar deal on financial services.
The Brexit White Paper, which is due to be published next week, will also propose a trade arbitration scheme that could open the door to the European Court of Justice playing a significant role after Brexit. Ministers are also considering plans to give EU migrants preferential treatment after Brexit in exchange for a better trade deal, although the policy will not be included in the White Paper.
Jacob Rees-mogg, the leader of a 60-strong group of Eurosceptic MPS, warned the Prime Minister that the plans would be “cheating” the electorate. He told BBC Radio 4’s The World at One: “The party stood for election saying it would leave the single market. It would be a cheat on the electorate to remain within the single market.
“That doesn’t mean leaving in name but staying in fact. It means leaving the single market fully. It’s just being honest with voters. I expect the PM to do what she said she would do.”