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Brexit: Theresa May accused of 'running scared' of Commons vote on UK staying in EU customs union

Clash on one of the key Brexit disputes has been delayed until at least April, because the Government fears a possible defeat.

Deputy Political Editor

Thursday 22 February 2018 17:19 GMT

Theresa May is believed to fear a show of weakness ahead of a crucial EU summit to secure a Brexit transition (PA)

Theresa May has been accused of “running scared” of a Commons vote on whether the UK should stay in the EU customs union, after the clash was shelved.

The showdown on one of the key Brexit disputes has been delayed until at least April, The Independent has learned, as the Government contemplates a possible defeat.

The Prime Minister is believed to be determined not to risk such a show of weakness until after next month’s crucial European Council meeting, which is meant to agree the transitional deal she is seeking.

Chris Leslie MP, a Labour MP backing the amendment, said: “It looks like the Government is running scared from a vote on the customs union, because they're terrified they'll lose.

“MPs from across all parties have the national interest at heart in wanting to ensure we don't crash out of the customs union, damaging trade with our largest partner and putting jobs in this country at risk.”

What could the sticking points be in the Brexit trade deal?

Anna Soubry and Ken Clarke, two prominent pro-EU Conservative MPs, are leading a Tory rebellion to keep Britain “in a customs union in the EU in the same terms as existed before exit day”.

Labour is likely to vote for the amendment, after Jeremy Corbyn said, this week: “We have to have a customs union.”

The new Commons timetable confirms that a vote – expected next week – has been delayed until at least next month, but The Independent has been told it will not be staged until after Easter.

The biggest issues facing UK on leaving EU

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1/8The biggest issues facing UK on leaving EU

The biggest issues facing UK on leaving EU

Post-Brexit immigration

workers sorting radishes on a production line at a farm in Norfolk. One possible post-Brexit immigration scheme could struggle to channel workers towards less attractive roles - while another may heighten the risk of labour exploitation, a new report warns.

PA

The biggest issues facing UK on leaving EU

Customs union

A key point in the negotiations remains Britain's access to, or withdrawal from, the EU customs union. Since the referendum there has been hot debate over the meaning of Brexit: would it entail a full withdrawal from the existing agreement, known as hard Brexit, or the soft version in which we would remain part of a common customs area for most goods, as Turkey does? No 10 has so far insisted that “Brexit means Brexit” and that Britain will be leaving the customs union, but may be inclined to change its position once the potential risks to the UK’s economic outlook become clearer.

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The biggest issues facing UK on leaving EU

Northern Ireland-Irish border

Though progress was made last year, there has still been no solid agreement on whether there should be a hard border between Northern Ireland and the Republic of Ireland. To ensure borderless travel on the island, the countries must be in regulatory alignment and therefore adhere to the same rules as the customs union. In December, the Conservative Party’s coalition partners, the DUP, refused a draft agreement that would place the UK/EU border in the Irish Sea due to its potential to undermine the union. May has promised that would not be the case and has suggested that a “specific solution” would need to be found.

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The biggest issues facing UK on leaving EU

Transition period

Despite protests from a small number of Conservative MPs, the Government and the EU are largely in agreement that a transitional period is needed after Brexit. The talks, however, have reached an impasse. Though May has agreed that the UK will continue to contribute to the EU budget until 2021, the PM wants to be able to select which laws made during this time the UK will have to adhere to. Chief negotiator Michel Barnier has said the UK must adopt all of the laws passed during the transition, without any input from British ministers or MEPs.

EPA

The biggest issues facing UK on leaving EU

Rights of EU citizens living the UK

The Prime Minister has promised EU citizens already living in the UK the right to live and work here after Brexit, but the rights of those who arrive after Brexit day remains unclear. May insists that those who arrive during the transition period should not be allowed to stay, whereas the EU believe the cut-off point should be later.

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The biggest issues facing UK on leaving EU

Future trade agreement (with the EU)

Despite this being a key issue in negotiations, the Government has yet to lay out exactly what it wants from a trade deal with the EU. Infighting within the Cabinet has prevented a solid position from being reached, with some MPs content that "no deal is better than a bad deal" while others rally behind single market access. The EU has already confirmed that access to the single market would be impossible without the UK remaining in the customs union.

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The biggest issues facing UK on leaving EU

Future trade agreements (internationally)

The Government has already begun trying to woo foreign leaders into prospective trade agreements, with various high profile state visits to China, India and Canada for May, and the now infamous invitation to US President Donald Trump to visit London. However the UK cannot make trade agreements with another country while it is still a member of the EU, and the potential loss of trade with the world's major powers is a source of anxiety for the PM. The EU has said the UK cannot secure trade deals during the transition period.

EPA

The biggest issues facing UK on leaving EU

Financial services

Banks in the UK will be hit hard regardless of the Brexit outcome. The EU has refused to give British banks passporting rights to trade within the EU, dashing hopes of a special City deal. However according to new reports Germany has suggested allowing trade on the condition that the UK continues paying into the EU budget even after the transition period.

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Mr Leslie, a supporter of pro-EU Open Britain campaign, said the Prime Minister could not avoid the clash, adding: “Parliament will have its say on this, whether the Government wants it to or not.”

Ms Soubry and Mr Clarke have tabled similar amendments to both the Taxation (Cross-Border Trade) Bill and to the separate Trade Bill.

The amendment to the Trade Bill is easier for Labour to support because it would keep the UK in “a customs union in the EU” – rather than “the customs union”.

John McDonnell, the Shadow Chancellor, said the party could support “a customs union” because it would give the UK the ability to “influence trade negotiations”, instead of tying its hands.

Separately, furious pro-Brexit Tories are poised to mount a stand because the Taxation Bill would allow for Britain to rejoin the EU customs union without a further Bill, should MPs vote for it in future.

Ms May has vowed the UK will leave the single market and the customs union, but conceded she must abide by their rules in the transition period of “around two years”.

Businesses have repeatedly warned of their fears that leaving will bring an explosion in red tape, disruption to trade flows and huge queues at border points.

Meanwhile, the EU believes that only staying in both the single market and the customs union can solve the problem of avoiding new border post and checks on the Irish border.

Commons Leader Andrea Leadsom ducked accusations that both Bills were being delayed, while confirming that no date had been set for report stage for either piece of legislation.

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