PM ‘may be forced to keep UK in customs union’

PRO-EUROPE TORIES have accused Brexiteers of “sabre rattling” over a leadership challenge risk for Theresa May.

Former Cabinet Minister Nicky Morgan, who is behind a pro-customs union Commons motion set to be debated this week, accused Conservative opponents of “hysteria”.

It follows a Government defeat in the House of Lords on the issue of retaining a customs union with the EU and reports the Prime Minister and her inner team are considering a rethink on the matter.

Such a U-turn would be popular with business leaders and go a long way to resolving Mrs May’s difficulties in dealing with the Northern Ireland border issue.

However, it would also be hugely controversial with senior members of the Cabinet, with Downing Street now believing International Trade Secretary Liam Fox and Foreign Secretary Boris Johnson could both resign.

Chairwoman of the Commons Treasury Committee Ms Morgan said her pro-customs union move was not intended to pose a threat to Mrs May’s grip on power.

She told the BBC: “That risk to the Prime Minister’s leadership, all this sabre-rattling... is not coming from the section of the party that I represent.

“It is coming from the proBrexit section of the party and it’s deeply unhelpful.”

A Downing Street source said Mrs May, who faces the possibility of further Brexit defeats in the Lords this week, would continue to argue for Britain to leave the customs union, adding: “Government policy hasn’t changed – we are leaving the customs union.”

While the motion backed by Ms Morgan could prove embarrassing for the Government, a meaningful vote on customs union membership is not expected until the trade and customs Bill returns to the Commons.