‘No blank cheque to redraw customs’ – Labour

THERESA May and her ministers have been warned they will not be given a “blank cheque” to redraw the UK’s customs arrangements after Brexit.

The government has published legislation allowing it to set and collect its own duty on goods crossing the border after the UK leaves the European Union, but critics warned it gives ministers too much power without parliamentary scrutiny.

Chancellor Philip Hammond said the legislation would help deliver a smooth transition for businesses as the UK breaks away from Brussels and the EU Customs Union.

Officials acknowledged that the precise customs arrangements that will apply after Brexit will not be known until negotiations with the EU conclude.

The arrangements would need to be able to cover scenarios ranging from an implementation period under which very little would change to a “no deal” outcome where the UK is forced to use World Trade Organisation terms for deals with the EU.

The Taxation (Cross-border Trade) Bill will allow the government to charge and vary customs duty on goods and ensure that VAT and excise legislation function effectively after Brexit.

Mr Hammond said: “Britain is a great trading nation and innovative UK businesses are central to the success of our economy.

“This bill represents the first step in setting up an independent UK customs regime and reaffirms our commitment to deliver a smooth transition for businesses as we leave the EU.”

But shadow chief secretary Peter Dowd said ministers were treating Parliament with contempt, claiming there was a lack of oversight for any customs changes that may be made under the legislation.

“While Labour recognises the need for the government to begin preparations for an independent customs and tariff regime, that does not mean giving the government a blank cheque to concentrate power in its own hands,” he said.