May puts Tories before national interest on Brexit, says Starmer

The shadow Brexit secretary has accused the prime minister of putting party management before the national interest, as MPs seek to ramp up the pressure on the government over a customs union.

Keir Starmer said: “Over the past few weeks it has become abundantly clear that Theresa May is unwilling and unable to put the country’s interests first during the Brexit negotiations.

“She has wasted 12 weeks of the Brexit negotiations delaying a Commons vote on the UK negotiating a customs union with the EU for fear of a defeat.”

Staying in the single market and customs union

The UK could sign up to all the EU’s rules and regulations, staying in the single market – which provides free movement of goods, services and people – and the customs union, in which EU members agree tariffs on external states. Freedom of movement would continue and the UK would keep paying into the Brussels pot. We would continue to have unfettered access to EU trade, but the pledge to “take back control” of laws, borders and money would not have been fulfilled. This is an unlikely outcome and one that may be possible only by reversing the Brexit decision, after a second referendum or election.

The Norway model

Britain could follow Norway, which is in the single market, is subject to freedom of movement rules and pays a fee to Brussels – but is outside the customs union. That combination would tie Britain to EU regulations but allow it to sign trade deals of its own. A “Norway-minus” deal is more likely. That would see the UK leave the single market and customs union and end free movement of people. But Britain would align its rules and regulations with Brussels, hoping this would allow a greater degree of market access. The UK would still be subject to EU rules.

The Canada deal

A comprehensive trade deal like the one handed to Canada would help British traders, as it would lower or eliminate tariffs. But there would be little on offer for the UK services industry. It is a bad outcome for financial services. Such a deal would leave Britain free to diverge from EU rules and regulations but that in turn would lead to border checks and the rise of other “non-tariff barriers” to trade. It would leave Britain free to forge new trade deals with other nations. Many in Brussels see this as a likely outcome, based on Theresa May’s direction so far.

No deal

Britain leaves with no trade deal, meaning that all trade is governed by World Trade Organization rules. Tariffs would be high, queues at the border long and the Irish border issue severe. In the short term, British aircraft might be unable to fly to some European destinations. The UK would quickly need to establish bilateral agreements to deal with the consequences, but the country would be free to take whatever future direction it wishes. It may need to deregulate to attract international business – a very different future and a lot of disruption.

May has delayed contentious votes over amendments to two Brexit bills, aimed at forcing the issue of a customs union.

But after the House of Lords overwhelmingly backed a pro-customs union amendment to the Brexit bill last week, 10 select committee chairs, including Tory MPs Nicky Morgan and Sarah Wollaston, have triggered a backbench debate on the issue on Thursday afternoon.

Backbench debates do not always result in a vote – though Labour may try to force one – and any resolution would be non-binding. Mel Stride, the financial secretary to the treasury, will set out the government’s position. But backers of a customs union hope it will demonstrate clear support for the cause in parliament.

Starmer, speaking in advance of the debate, said: “The prime minister is now solely focused on internal party management and masking the divisions within her government. Above all, it shows we have a prime minister governing for narrow party interest, not the national interest.”

On Wednesday the leader of the House of Commons, Andrea Leadsom, became the latest senior minister to reject the idea of Britain remaining in a customs union, saying it would be “ludicrous” to do so.

A customs union with the EU – which is Labour’s preferred outcome – would help to minimise border checks (though diverging from EU rules would be likely to result in some checks being imposed). But it would prevent Britain from being able to sign independent trade deals.

It emerged last weekend that the prime minister could be ready to concede on the issue, after Brussels formally rejected Britain’s proposals for avoiding customs checks at the Northern Ireland border. But Michael Gove and Sajid Javid both reiterated their insistence that Britain must remain outside a customs union.

Boris Johnson said last week: “Without your ability to do things in a different way if you want, and your ability to do free trade deals, there is very little point in Brexit. I think Theresa totally gets that.”

Downing Street said the customs union had not been on the agenda at Wednesday’s meeting of May’s Brexit inner cabinet.

Pro-Brexit ministers still believe the government can throw out pro-customs union amendments in the Commons, despite hopes among some backbenchers that Labour could team up with Tory rebels to force May’s hand.

Asked whether the issue was back in contention, one cabinet Brexiter said: “The Tory party won’t wear it.”

Earlier, David Davis said he would consider it a failure if the UK was forced to extend its membership of the EU customs union, amid mounting concern among MPs that time is running out for talks on alternative solutions.

Ruling out this possible compromise route for minimising a hard border for Northern Ireland, the Brexit secretary instead insisted that the problem did not need solving until at least October.

He said both the government’s proposals for resolving the Irish border issue were still on the table – a customs “partnership”, which would see the UK collect revenues on the EU’s behalf; and so-called “maxfac”, or maximum facilitation, which would use technology to help avoid cumbersome border checks.

“I do not expect the solution to be an extension of the customs union,” Davis told the Brexit committee. “I would view that on my part as a failure.”