May stands firm over EU customs union to avert cabinet revolt
Downing Street has insisted the UK will not backtrack on its decision to leave the European Union's customs union and the single market post-Brexit, despite reports that parliament is likely to vote against the government's position on the issue.
The House of Commons faces a vote next month on May's plans to take Britain out of the EU’s customs union as part of the Brexit process. Last week the House of Lords voted in favour of staying in the customs union as part of the debate on the EU Withdrawal Bill.
May has faced pressure on the matter from business leaders, who argue the move will damage international trade, and from Brussels, who disagree that it will avoid a hard border between Ireland and Northern Ireland after the divorce.
It was reported on Sunday that the PM could be forced to accept defeat over the customs union in the Commons vote, with The Sunday Times saying May’s team had acknowledged she "may have to accept" permanent membership of "a customs union" after concluding that even Brexiters such as environment secretary Michael Gove and Brexit secretary David Davis would not resign in protest.
However, the government insisted on Monday that May was committed to leaving the customs union, though the issue will be discussed on a senior ministers’ meeting on Wednesday. The meeting could give the prime minister indication of the opposition she might face in the vote next month.
A Downing Street source said: “The position remains very clear: we don’t think staying in a customs union is the right thing to do and it isn’t government policy to do so.”
On Monday, Brexit supporters in the cabinet were preparing to "press" May at the Wednesday meeting to drop her favoured option for a customs deal, The Times is reporting, with Davis, foreign secretary Boris Johnson and trade minister Liam Fox calling for the abandonment of this plan as they believe a customs partnership "is unworkable and is encouraging Brussels to press for Britain to stay in a customs union after Brexit".
The trio want the PM to go with the “maximum facilitation” option that aims to minimise but not eliminate checks and controls at the border, even though this is felt likely to result in a hard border with Ireland.
Ahead of speech on the opportunities Brexit offers to the financial sector on Monday, Fox issued statements that the UK intended to "work with old allies and new partners across the world, utilising the UK's economic strength and diplomatic prowess to forge new trading relationships”.
"Ultimately, our task is to remove the unnecessary regulation, bureaucracy and red tape that inhibit the free trade in services.
"Whatever one's view on the referendum result, it must be acknowledged that, outside the EU, this country will enjoy a new degree of economic agility."