'Of course we're leaving': Rudd clarifies EU customs union position

Amber Rudd has been forced to issue a hasty clarification after appearing to hold out the possibility that Britain could remain in a customs union with the EU after Brexit.

At a lunch with journalists in Westminster, which took place as MPs were debating the issue in the House of Commons, the home secretary was asked if she would vote to stay in in a customs union if she were still a backbencher.

“I am committed to the government’s position, which to some extent, we are still working on,” she replied.

Later, she was asked if she thought it was more or less likely that the UK would stay in the customs union. Rudd said: “I’m afraid I’m not going to be drawn on that; we still have a few discussions to have, in a really positive, consensual, easy way, amongst all my cabinet colleagues, in order to arrive at a final position”.

That contrasts with the government’s position, which is that the UK will leave the customs union.

Within an hour of the lunch ending, Rudd tweeted that she “could have been clearer” about her position. But her earlier ambivalence gave heart to those who are pushing for the UK to remain in a customs union.

Downing Street later disowned the remarks. May’s spokesman said: “The government is absolutely clear and without ambiguity that we are leaving the customs union and not joining a customs union.

“It’s the position of the prime minister, the cabinet and the entire government that we will be leaving the customs union and be free to sign our own trade deals around the world.”

Number 10 said there was “a discussion around the issue of which two customs options the government opts for - but are we leaving the customs union? The answer is categorically yes.”

Both options set out in the Mansion House speech were still on the table, the spokesman said. “But as we move forward, you can expect there to be a single option,” he said. “Neither of the options are a customs union.”

However, the remarks were seized on by MPs keen to shift the government’s position. The shadow Brexit secretary, Keir Starmer, 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.”

In the Commons, Rudd’s pro-remain colleagues were arguing vehemently for a change in government policy. The former education secretary Nicky Morgan said her party would “not be forgiven for a generation” if a hard Brexit undermined the economy and peace in Northern Ireland.

Morgan, who is one of the 12 Commons committee chairs who jointly sought the debate, said it was vital for parliament to properly examine what would happen if the UK does not remain in the EU’s customs union.

Morgan said that earlier in the week the Treasury select committee, which she chairs, had helped organise a session that heard evidence from Prof Patrick Minford, a leading pro-Brexit economist whose forecasts are strongly backed by Jacob Rees-Mogg, among others.

Morgan told MPs that Minford had told the hearing that when it came to trade agreements the UK could pursue outside the single market and customs union, “we don’t have any precedents for this”.

She said: “This country is being asked to experiment at other people’s pleasure with a free trade policy when we do not know what the costs will be for constituents and businesses in this country.

“And I say to my party – if we undermine and ignore the evidence for peace in Northern Ireland, and we undermine the business and financial security of people in this country, we will not be forgiven for a generation.”

The debate has no direct influence on government policy, but is was regarded as a gauge of Commons opinion ahead of potentially crucial future votes on amendments committing the government to staying in the customs union.

These have been tabled to the government’s pre-Brexit trade bill and customs bill, due to be debated in the coming months, with supportive MPs saying they believe there would be enough Tory rebels to win a vote.

More than 10 Conservatives expressed doubts about leaving the customs union – sufficient to overturn the government’s majority if they all rebel.

Thursday’s debate was opened by Yvette Cooper, the Labourchair of the home affairs committee, who warned that decisions needed to be made soon.

“We’re running out of time for parliament to help shape the negotiations,” she said. And we’re running out of time to hear from the government about what it’s actually going to do.”

Ken Clarke, the Europhile Tory MP, said he was deeply worried about the impact of leaving the customs union on both the Irish border and future trade.

“I really do think it is remarkable how little attention parliament has been allowed to pay to the quite momentous events that are taking place at the moment, and will certainly take place over the next few months, and which have a profound importance for the future health of our economy and the standing of this country in the world,” he said.