Brexit: Amber Rudd says government is yet to arrive at 'final position' on a customs union with EU

Amber Rudd has broken ranks with cabinet colleagues by saying that the government is yet to arrive at a “final position” on whether the UK will be in a customs union with the EU after Brexit.

The Home Secretary said there are still more cabinet discussions to be had before ministers decide exactly how to approach the idea of a customs union, despite the prime minister having been adamant the UK will not be any part of one after withdrawal.

Her admission is likely to enrage Conservative Brexiteers, including cabinet ministers Liam Fox and Boris Johnson, who see staying out of any sort of customs union as fundamental to their vision of Britain’s future.

It also angered the pro-Brexit DUP, which props up Ms May’s Commons majority, with a senior figure immediately stating that leaving the customs union is a “red line” for the Northern Irish party.

The home secretary desperately tried to kill the story as it quickly spread across social media with a tweet saying “we will be leaving the customs union”, but it did little to dampen interest.

Ms Rudd’s comments will heap further pressure on Theresa May as she seeks to shore up her Brexit strategy in the wake of a series of defeats in the House of Lords, including one which would force her to seek to stay in a customs union.

Asked at a lunch with journalists whether it was more or less likely that the UK would stay in a customs union, Ms Rudd said: “I’m afraid I’m not going to be drawn on that.”

She then added, with a hint of sarcasm: “We still have a few discussions to be had, in a really positive, consensual, easy way, among some of my cabinet colleagues, in order to arrive at a final position.”

Labour immediately leapt on her words to claim that she had unwittingly revealed that the government may still be considering remaining in a customs union with the EU, which is the opposition’s official policy.

Keir Starmer, shadow Brexit secretary, said: “Amber Rudd appears to have let slip that discussions around the Cabinet table about negotiating a customs union with the EU have not in fact concluded.

“If that is so, then the prime minister should rethink her approach and listen to the growing chorus of voices in parliament and in business that believe she has got it wrong on a customs union.”

Brexiteer Tory backbencher Peter Bone MP, immediately weighed in to attack one of his own party’s most senior ministers, tweeting: “At the press gallery lunch today, could not understand why Amber Rudd did not support government policy to leave the customs union. We cannot have Home Sec not supporting this key plank of Brexit!”

As the row grew, the DUP warned it would bring down Ms May’s government if Northern Ireland is forced to stay in the single market or customs union after Brexit.

Nigel Dodds, the party’s leader said the DUP would vote against the Government if any of its “red lines” on Brexit are crossed.

Ms Rudd herself then took to social media as the story threatened to destabilise the government, saying: “Thanks to the Press Gallery for hosting me at a challenging yet enjoyable lunch. I should have been clearer – of course when we leave the EU we will be leaving the customs union.

“I wasn’t going to get into ongoing cabinet discussions about our future trading relationship.”

Downing Street said it still had “full confidence” in Ms Rudd, but critics immediately pointed out that her clarification tweet only committed the UK to leaving “the” customs union, but said nothing on the country remaining in a new kind of customs union, the policy supported by Labour.

As Ms Rudd made her initial comments, MPs were in a heated debate in the Commons about the government’s plan to stay out of any customs union, with Tory rebels urging Ms May to rethink.

It followed a vote in the House of Lords last week in which peers, including some Conservatives, voted for an amendment which pushes the government to change its negotiating stance to keep the UK in a customs union with the EU.

While the motion was loosely worded, ministers now face having to overturn it in the Commons and, even harder, must prevent stronger motions on keeping the UK in a customs union being passed by rebel MPs.

Backbench Tories have tabled motions to both the Trade Bill and Taxation Cross-Border Trade Bill aimed at forcing the UK to stay in a customs union, with the government delaying the passage of the two pieces of legislation as a result.