Peers try to rescue customs union in vote blow
Lords sabotage key part of May’s Brexit strategy
A CROSS-PARTY alliance of peers has inflicted a defeat on the Government over flagship Brexit legislation, amid accusations the vote in the House of Lords was an attempt to prevent the UK’s divorce from the European Union.
Labour, the Liberal Democrats, Crossbenchers and backbench Tories yesterday formed an alliance over two European Union (Withdrawal) Bill amendments which sought to retain the option of a customs union with the EU.
The defeat sets up a major battle among MPs, with Remainers confident they have enough Tory rebels willing to join Labour to back staying in the customs union in what would be a major blow to Prime Minister Theresa May’s Brexit strategy just months before the UK leaves the EU.
The importance of trade links with nations outside the EU was highlighted yesterday as a new partnership agreement signed by India and Great Britain could be set to generate thousands of new jobs across the UK.
And the move by the cross-party alliance in the House of Lords was condemned by Tory peers, who claimed it was undermining the decision of the electorate in the EU referendum in June 2016.
Conservative Viscount Ridley said: “It’s an attempt to wreck this Bill and to prevent Brexit.”
When one of the amendments was pushed to a vote, peers voted overwhelmingly in favour by 348 votes to 225 – majority 123 – with the other, linked amendment approved unopposed.
Conservative former Chancellor Lord Lawson of Blaby said the leave vote made it “absolutely clear” that leaving the EU meant leaving the customs union and single market.
He dismissed trade arguments in favour of a customs union with the EU, adding: “I urge the House to reject what is in essence a wrecking amendment.”
Crossbench peer Lord Bilimoria, the founder of Cobra Beer, said the amendment was about “damage limitation” as he supported the UK remaining in the customs union.
Conservative former Cabinet Minister Lord Forsyth, however, said the change being sought in relation to a customs union was “an attempt to create division and confusion” in the House of Commons in a bid to block Brexit.
Brexit Minister Lord Callanan said the Government did not support the measures as it would require it to report to Parliament on the steps taken towards delivering an objective which it has “clearly ruled out”. He also signalled the Government’s intention to overturn the measures at a later stage.
A NEW partnership agreement signed by India and Great Britain could be set to generate thousands of new jobs across the UK.
The new UK-India Tech Partnership is expected to generate significant trade by identifying and pairing businesses, venture capital, universities and others to provide access routes to markets for British and Indian entrepreneurs and small and medium enterprises.
In the North and elsewhere, regional teams will link specific cities and regions in India and the UK with a spokesperson, saying they would “ensure the impact is felt across the breadth of both nations’ expansive tech sectors, and that successful approaches adopted in one region can be shared and adopted in others”.
The deal will encourage innovation and productivity by helping businesses in the UK and India collaborate on emerging technologies. It follows on from the success of the UK-Israel Tech Hub which has generated £62m worth of deals over the past five years, with a potential impact of £600m for the UK economy.
The most up-to-date figures show the UK exported £358m of digital services to India in 2015 and, given the size of the Indian economy, Ministers believe the link could give the UK economy a significant boost.
The UK will initially invest £1m to pilot the approach and potentially up to a further £13m by 2022.
Digital Secretary Matt Hancock said: “Our world-leading digital economy is booming, worth more than £116bn a year and employing more than two million people.”
He added: “We’re determined to see this incredible success continue, and this ambitious UK-India Tech Partnership will bring together some of the best minds working in tech to unlock its future potential and deliver highskilled jobs and economic growth in both countries.”
Last month, a delegation of Indian business people visited the region and said that Anglo/Indian trade would flourish post-Brexit.
India is a key market for a number of the region’s tech and advanced manufacturing businesses.
A pilot scheme will connect the UK with Pune in Maharashtra, focussing on the Future of Mobility, including low emission and autonomous vehicles, battery storage and making vehicles lighter. Additional connections will be linked to Bangalore with a focus on augmented and virtual reality, advanced materials and artificial intelligence.
If it is as successful as expected, the partnership can be scaled up to bring in more regions of the UK and India which share expertise in the relevant fields.
Julian David, CEO of TechUK, said: “The UK and India are leaders in the development and use of digital tech, and there is a huge amount we can learn from each other and big opportunities to join forces in innovation.”
Our digital economy is worth more than £116bn a year. Digital Secretary Matt Hancock.