May ‘trying to avoid Lords scrutiny on customs plan’
Rebel Tory and Labour MPs have raised fears the Government is trying to strip the House of Lords of its right to alter a critical part of Theresa May’s Brexit plans. MPs from both parties sounded the alarm over an apparent push to ensure the Lords is blocked from amending the Prime Minister’s approach to post-Brexit customs arrangements.
They are planning multiple representations to Commons Speaker John Bercow in a bid to prevent the move, which one MP branded as an “attempt to dodge scrutiny”. It opens up a new front in the battle over Ms May’s approach to the EU’s customs union, with rebel Tory MPs already threatening to force changes to her legislation in the Commons. Ms May has more chance of fighting off their bid in the lower chamber as she enjoys a slim majority there, but Tories in the Lords are heavily outnumbered, and ministers fear
attempts to overturn Ms May’s plans could damage her ability to deliver them.
The new row focusses on what was announced in the Queen’s Speech last year as the “Customs Bill”, but when it was eventually presented to the Commons it was instead named the Taxation (Cross Border Trade) Bill. The draft also carried a preamble showing the Government wants the legislation to carry “supply bill” status, which according to parliamentary privilege would make it harder – but not impossible – for the Lords to make changes.
But it also makes it more probable that it could be designated “money bill” status, normally reserved for taxation and finance bills and something which more comprehensively blocks Lords action. One senior Conservative MP who said they would be making a representation to the Speaker, who has final say over the issue, told The Independent: “I can see why the Government is doing it. It’s obviously very advantageous to them to have the bill scrutinised to a lesser degree in the Lords. But I don’t think it’s justified.”
Officials at the Treasury would not comment on the broader issue, saying designation of money bill status is an issue for the Speaker, but The Independent understands that they believe the bill should naturally attract money bill status because it deals with issues of taxation, relating to VAT and trade tariffs. But MPs are refuting that because the bill also sets out broader powers, like creating customs relations with other countries after Brexit.
Conservative MP Anna Soubry told The Independent: “I don’t understand why this was done.” She added: “It’s for the Government to give an explanation, but there’s a suspicion, that may be unfounded, that it is being done to stop it being scrutinised in the House of Lords. I would be surprised and disappointed if that was it. It would not be the right way to go about it.”
The Government has already run in to trouble in the Lords with its legislation to trigger Article 50, launching Brexit, and is suspected to face challenges from peers to another piece of Brexit legislation, the EU (Withdrawal) Bill, in the coming months. The Liberal Democrats are preparing to launch a bid to swamp that piece of legislation in the Lords with at least 500 challenges, stymieing it and potentially the push towards Brexit.
One minister told The Independent: “Trying to get legislation designated a money bill like this is a dangerous thing to play strategy with. The ministers heading the bill wouldn’t do it without arguable grounds, but arguable ground is not necessarily solid ground. It would certainly help us if it is a money bill.”
A similar row broke out about the designation of a bill in 2010, when then-chancellor George Osborne moved to scrap Labour child trust funds with a piece of new legislation. Labour MP and ex-shadow chancellor Chris Leslie said: “Designating the customs legislation in the way they have and naming it as ‘Taxation (Cross Border Trade)’ is a transparent attempt by ministers to dodge scrutiny of their Brexit plans. The House of Lords should have every right to consider trade arrangements like the customs union and trade remedies such as anti-dumping powers and unfair foreign subsidies. The Government shouldn’t try to cut Parliament out of this process.”
The ultimate decision on whether the Taxation (Cross Border Trade) Bill receives money bill status is up to the Speaker, who is set to take a decision at report stage – which has been delayed as the Government attempts to ward off a Commons bid to amend the bill. Ms Soubry and former chancellor Ken Clarke are among those backing an amendment to the bill that if passed would keep the UK in the EU customs union.