Tories need Labour to save Brexit, Cabinet told

Party ‘must back customs union deal’

THE Tories may have to accept a permanent customs union to get Brexit through Parliament, the Cabinet was warned yesterday.

In a blunt analysis, the Government’s chief whip Julian Smith said there was no chance of passing a version of Mrs May’s deal without Labour’s support – and warned that the Government could be ‘sunk’ if it tried.

A source said Mr Smith told yesterday’s meeting of the Cabinet: ‘It’s a customs union or a second referendum, and we are not having a second referendum.’

Although no decisions were taken at the meeting, one Cabinet minister described the presentation as ‘pitch rolling for a customs union’ ahead of last-ditch talks with Labour on a softBrexit compromise next week.

Mrs May told ministers that she wanted to bring the month-long talks with Labour to a ‘conclusion’ next week, in the hope of getting a Brexit deal through Parliament in the coming weeks.

But Labour has made it clear that a customs union would be the minimum price for its support. Commons leader Andrea Leadsom has led calls for the Government to introduce the Withdrawal Agreement Bill, which would ratify Mrs May’s Brexit deal, and dare MPs to vote it down.

But Mr Smith yesterday issued ministers with a detailed paper highlighting the risks involved. He said it was clear that Labour would vote against the legislation unless the Government met its demands for a soft Brexit. With 34 Tory rebels and the DUP also still opposed, the legislation would have no chance of passing.

Ministers were warned that in order to bring the deal back later, they would then have to prorogue Parliament [terminate a session until November], with no guarantee that the DUP would back a Queen’s Speech – potentially bringing about the collapse of the Government.

‘Basically he told us the Government would be sunk if we tried it,’ the source said.

Another source said: ‘The point, which was reflected by many ministers, is that the

‘We’d be sunk if we tried it’

choices we are facing as a result of Parliament rejecting the deal, are now very unpleasant.’ International development secretary Penny Mordaunt called on Mr Smith to ‘not give up on the 34’ Tory rebels. But sources said she was backed only by Mrs Leadsom and the international trade secretary Liam Fox.

Mrs May has yet to make a formal offer to Labour on a customs union, with ministers instead trying to persuade their opposite numbers that her deal delivers most of the benefits they want.

Foreign Secretary Jeremy Hunt yesterday rejected the idea of a customs union calling it ‘bad policy’.

Speaking to the Mail during a trip to Africa, Mr Hunt said: ‘Personally I think a customs union is bad policy.

‘I haven’t seen any experts who think the customs union which is on offer from the EU would be in any way sustainable for an economy the size of Britain.’

Mr Hunt also warned that a soft Brexit agreement with Labour could anger so many Tories that it might be defeated anyway.

He added: ‘There is always a danger of doing a deal with Labour that you lose more Conservative MPs than you gain Labour MPs. But I think the essential question is whether Labour are serious about delivering Brexit.’