Cabinet split over revealing no-deal tariffs

Liam Fox’s desire for detail on slashed import rates to be made public is opposed by the Business Secretary

THERESA MAY is facing a Cabinet split over the Government’s decision to keep secret plans to slash tariffs on up to 90 per cent of goods in the event of a no-deal Brexit.

Liam Fox, the International Trade Secretary, said the plans should be made public ahead of votes that could take no-deal off the table and force the Prime Minister to extend Article 50.

Charges on goods entering the country are widely expected to be slashed across the board if a deal on Brexit is not secured with Brussels by the exit date of March 29.

It has triggered concerns in industries from agriculture to ceramics that a sudden sharp drop in tariffs could leave them exposed to an influx of cheap imports, rendering their businesses uncompetitive.

According to a leak obtained by Sky News, tariffs will be cut by 80 to 90 per cent if the UK leaves without a deal. Michael Gove, the Environment Secretary, is said to have secured protections in the form of higher tariffs for agriculture.

Dr Fox told MPS yesterday that the tariffs should be made public before a number of key Brexit votes take place next week.

He said: “My personal preference would be that we would know that information before we vote on a no-deal outcome.”

He also hit out at Cabinet leaks over the issue, adding: “There are days where I find it easier, quicker to read the next day’s newspapers than wait for the Cabinet minutes.”

Dr Fox’s stance contrasts with that of other senior ministers. Greg Clark, the Business Secretary, told BBC Radio Four that the no-deal tariffs will remain secret to only be revealed if the UK leaves without a deal on March 29.

“Work is continuing on developing and finalising those tariff schedules but they will be published once we knew that we were leaving without a deal,” he said.

This was at odds with Dr Fox telling the International Trade Committee, that “while it was always possible for changes to be made” an “agreement had been reached” on the levies.

Action would be taken if industries were left “vulnerable” by an immediate reduction in tariffs, Dr Fox said.

This was because some areas, such as agriculture, took “longer” to “turn around” in the face of changes.

He did not offer specific interventions, however, stating instead that these mitigating actions were the sort of “levers that are open to any Government”.

Nicky Morgan, a Tory MP and chairman of the Treasury select committee, has written to Philip Hammond, the Chancellor, to raise concerns. She said: “MPS should not have to read reports in the press that the Government is planning to slash tariffs on almost all imported goods.

“This is likely to have a significant impact on different business sectors and regions in the UK economy.

“When MPS decide which voting lobby to walk through next week, one of the roles of select committees is to ensure that they are doing so with as much information as possible.

“At present, MPS are expected to vote blindly next week without this information.”