Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team May’s customs plan attacked as ‘unwieldy’ and ‘impractical’ by Andrea Leadsom as Gove and Fox ‘take it to the abattoir’ Theresa May’s plans for a customs partnership are “bureaucratic, unwieldy and impractical”, a Eurosceptic Cabinet minister has warned, as Brexiteers grow increasingly confident they have killed off the plans ahead of a crunch Chequers summit. In her first newspaper interview on Brexit Andrea Leadsom, the Leader of the Commons, became the third Cabinet minister to publicly criticise the plans as she warns they will be “complicated” for businesses and lead to “more red tape”. It came as another Eurosceptic Cabinet minister told The Telegraph that Michael Gove, the Environment Secretary, and Liam Fox, the International Trade Secretary, have taken plans for the customs partnership “to the abattoir”. – Telegraph (£) Andrea Leadsom says plans for Britain to form a customs partnership with the EU after Brexit are ‘unwieldy and impractical’ – Daily Mail Jeremy Hunt hits back at “completely inappropriate” Airbus over Brexit “threats” Jeremy Hunt has called warnings from Airbus about the UK’s Brexit strategy “completely inappropriate”, saying the government should ignore “siren voices”. In the most bullish comments from a cabinet minister since the intervention by the aerospace company’s chief executive, Hunt said businesses sounding the alarm about job losses risked undermining the government at a key moment in the negotiations. “It was completely inappropriate for businesses to be making these kinds of threats, for one simple reason,” the health secretary told the BBC’s The Andrew Marr Show on Sunday. “We are in a critical moment in the Brexit discussions. We need to get behind Theresa May to deliver the best possible Brexit, a clean Brexit.” Hunt said the best way for businesses to achieve the “clarity and certainty” they needed was to back the prime minister in her negotiations with Brussels. “The more we undermine Theresa May, the more likely we are to end up with a fudge, which would be an absolute disaster for everyone,” he said. – Guardian Business Brexit ‘threats’ are ‘completely inappropriate’ says Jeremy Hunt – BBC News Ministers tell big business to stop ‘undermining’ Theresa May on Brexit in fears of increasing the risk of a bad deal with the EU – Daily Mail Jeremy Hunt: Airbus’s threat to pull out of UK over Brexit was ‘completely inappropriate’ – Telegraph Health Secretary Jeremy Hunt blasts Airbus for threatening to quit UK over Brexit, branding it ‘completely inappropriate’ – The Sun Downing Street tries to reassure business over Brexit – FT (£) Boris Johnson and Jeremy Hunt told to back off business – The Times (£) Businesses can have concerns over the Prime Minister’s Brexit plans, but should really be angry at Brussels – The Sun says The Tories can’t afford to go to war with business – Christian May for City A.M. > WATCH: Jeremy Hunt: Experts have been proved wrong on Brexit in the past …as Liam Fox says businesses should be making their cases in Europe Senior ministers have hit back at Airbus for going public with fears about the progress of Brexit. International Trade Secretary Dr Liam Fox said the aerospace giant should be “making the case” against a “no deal” Brexit in Europe – not just to the UK. Dr Fox told Sky News: “Companies are right to say that if there is no deal that won’t be good for Britain – but it won’t be good for Europe either. The point I make to them is that they should also be making the same case to European governments.” – Sky News Trade secretary Liam Fox says extended Brexit transition would be acceptable – City A.M. > WATCH: Liam Fox: EU would be “foolish” to think that the PM is “bluffing” over no deal Karen Bradley to meet Michel Barnier in Brussels to stress UK’s integrity will not be undermined by backstop… Northern Ireland secretary Karen Bradley will today tell Michel Barnier the government agree to his backstop position, insisting any deal must recognise the “integrity of the United Kingdom”. Bradley will travel to Brussels today to meet the the EU’s chief Brexit negotiator, after he rejected Theresa May’s proposals for the Irish border backstop… Bradley will today tell Barnier there will be no compromise on the UK’s position ahead of this week’s European Council. She said: “I am here to reiterate the UK government’s commitment to securing a deal that delivers for all parts of the United Kingdom. This includes the government’s commitment to avoiding a hard border between Northern Ireland and Ireland, and maintaining the constitutional and economic integrity of the UK as a whole.” – City A.M. …as Leo Varadkar says “not my job” to sort the border Mr Varadkar said yesterday that it was “not my job” to help Theresa May, the British prime minister, find a solution to avoid a hard border. Both the taoiseach and Simon Coveney, the tánaiste, had already said that if substantial progress was not made by the EU council summit this Thursday it would be questionable whether a deal could be struck at all… When asked about bilateral discussions between the UK and Ireland, Mr Varadkar said that he would speak to Mrs May this week but would not be offering any solutions. “It’s not my job to help Mrs May,” he said. “The people of the United Kingdom decided on Brexit and it’s not my job to help prime minister May or the United Kingdom government.” – The Times (£) Juncker piles pressure on Ireland to adopt Brussels’ corporate tax plans – The Times (£) Stop prevaricating and back Heathrow plan to boost Brexit, Transport Secretary tells MPs Chris Grayling, the Transport Secretary, is urging Conservative MPs to stop prevaricating and back a controversial third runway at Heathrow to aid the United Kingdom’s trade drive as it prepares for life after Brexit. Writing in the Telegraph ahead of Monday’s crucial Commons vote, Mr Grayling says Britain has put off a decision on the airport’s expansion for “nearly half a century”, and demands an end to years of political wrangling and uncertainty… John Holland-Kaye, the chief executive of Heathrow Airport, also writing in The Telegraph, echoed Mr Grayling’s call for MPs to embrace expansion as a post-Brexit opportunity, and to make ‘Britain the best place on the planet to do business’. He added: “As we prepare to leave the EU, let us send our friends in Brussels, Berlin and Paris the strongest possible message that Britain is a confident outward looking trading nation, ready to take them on and win in the global race – by backing Heathrow expansion.” – Telegraph (£) Make Britain great again: Heathrow boss says Brexit presents an opportunity for the UK to become a more outward-looking nation – Daily Mail SNP MPs ‘may not back Heathrow expansion’ – BBC News Len McCluskey at odds with Corbyn over Heathrow expansion – Guardian Heathrow must expand, for the sake of the country – Chris Grayling for the Telegraph (£) After so long a wait, let’s get on with it – and vote emphatically today for expansion at Heathrow – Chris Grayling for ConservativeHome ‘Brexit is an opportunity and a catalyst’: Third runway key to global Britain, says Heathrow boss – Telegraph (£) London crowned the world’s most popular city for work despite Brexit London has been crowned the most popular city in the world for work in the biggest ever study of workforce migration trends, but the popularity of the UK as a whole has dropped. In the giant survey of 366,000 overseas workers from nearly 200 countries, the capital beats New York, Berlin and Barcelona as the destination of choice, retaining the top spot it secured when the study was first carried out on a smaller scale four years ago. The Boston Consulting Group (BCG) study says that London’s prominence as a global financial, business and cultural capital does not appear to have been dimmed by Brexit… The news of London’s dominance comes only a few months after it retained its number one spot in the Global Financial Centres Index, which showed the City successfully fighting off competition from New York, Hong Kong and Singapore for the most competitive and attractive business environment. – City A.M. Labour frontbenchers defend no show at anti-Brexit march Labour frontbenchers have defended their decision not to take part in Saturday’s march by tens of thousands of people demanding a new Brexit vote… No senior Labour figures joined the demonstration and there were chants of “where’s Jeremy Corbyn?” Frontbenchers Nia Griffith and Rebecca Long-Bailey said Mr Corbyn had been visiting a refugee camp in Jordan… Ms Long-Bailey, the shadow business secretary, who was at a constituency event on Saturday, said: “I understand why people wanted to march yesterday – it is a highly emotive issue.” But, she told BBC Radio 5’s Pienaar’s Politics, a second referendum was not Labour policy and she had “significant concerns” about the idea… Labour’s shadow defence secretary Nia Griffith said: “Of course people in a democratic country can do what they like and have marches and that’s good and they should express their opinions.” But she said Labour had accepted the result of the June 2016 EU referendum and was now working for “a Brexit that works the best way possible for the economy and for jobs”. – BBC News Pro-Corbyn group to launch drive for public vote on Brexit deal – Guardian Corbyn urged to back second Brexit vote by Momentum members desperate for him to win power – Express Jeremy Corbyn’s indifference to anti-Brexit march could cost the Labour leader – Lewis Goodall for Sky News A second EU vote is the last thing that Britain needs – Leo McKinstry for the Express > WATCH: Chloe Westley: Second referendum campaigners are “living in a fantasy land” US trade deal at risk if UK keeps EU food and drink protections post-Brexit, Paul Ryan warns Theresa May’s plans for a post-Brexit trade deal with the US will be put at risk if she retains EU protections for food and drink such as Champagne and Parma Ham, a senior ally of Donald Trump has warned. The Telegraph has learned that Liam Fox, the International Trade Secretary, has written to David Davis, the Brexit Secretary, warning him not to concede over the issue during negotiations with Brussels… Dr Fox has warned that conceding on the issue now will only embolden the European Union to push for further concessions. He has insisted that the UK must retain “flexibility” on the issue. – Telegraph (£) Meet Donald Trump’s band of Brexiteers who run the US embassy in London – Cara McGoogan for the Telegraph (£) Merkel left on the sidelines amid row at refugee summit Angela Merkel’s efforts to save her government by forging a deal on migrants were dealt a blow as an EU emergency summit that she had arranged was overshadowed by a row between France and Italy… The summit of 16 EU leaders was called to help to save Mrs Merkel’s government after her Bavarian coalition partners gave notice that they would start turning away some migrants at the border from Sunday, potentially causing chaos in arrival countries such as Italy and Greece… Four eastern European countries boycotted yesterday’s meeting in Brussels and refused to take part in any EU scheme for refugee quotas. – The Times (£) Clash of political, economic and social cultures within eurozone is more toxic now than at any time since Greek crisis erupted eight years ago – Alex Brummer for the Daily Mail George Parker: Theresa May’s Brexit plan: hiding in plain sight Mrs May’s willingness to indulge Eurosceptics over the NHS “Brexit dividend” left some smelling a rat. “When you hear her say something like that, you have to look over your shoulder to see if a juggernaut is about to run you over,” says one well-connected Tory Brexiter… Their suspicions are well founded. Close colleagues of Philip Hammond, the chancellor, say he only went along with the “fiction” of the “Brexit dividend” as part of a broader pact with the prime minister that the Chequers summit would see a decisive push towards a softer form of Brexit. “That was part of the agreement,” says one minister… The outline of Mrs May’s strategy can already be discerned: it is hidden in plain sight, but gradually becoming clearer to those who are connecting the clues contained in various speeches and policy papers. The evidence suggests Mrs May wants to keep Britain in a tight customs relationship with the EU and something that looks suspiciously like a single market for industrial goods; services and financial services would be covered by looser agreements. Some fear this will end up with European Court of Justice rulings over the goods sector — crossing one of Mrs May’s red lines — and possible payments to the EU budget. – George Parker for the FT (£) The Sun: Businesses can have concerns over the Prime Minister’s Brexit plans, but should really be angry at Brussels Taking shots at Theresa May doesn’t make any progress and instead businesses should pressure the EU to work on the trade deal… Businesses have a right to speak out about the Government’s Brexit plans. But they should be far angrier about how Brussels has spent the last two years. It’s not the British that have responded to every proposal with a “non” or “nein” and a spiteful background briefing. Big businesses taking potshots at the Prime Minister could use their time better by pushing the EU to work on the trade deal we’ve consistently asked for… Rather than ramping up Project Fear: The Sequel, bosses must demand that Brussels starts negotiating in good faith to keep trade ties with the world’s fifth largest economy. It might be useful for them to remind Brussels that if the EU “punishes” Britain with tariffs and restrictions, the UK Government would have to hit back… Brussels bureaucrats must be warned that their precious project isn’t more important than the European economy. – The Sun says Wolfgang Münchau: Why German industry should fear a no-deal Brexit According to the German association of the automotive industry, the country last year exported 769,000 cars to the UK, its single largest export market. The US came second with 494,000 cars. German carmakers also export 258,000 German-made vehicles to China, plus those produced in US and Chinese factories. If the UK were forced into a cliff-edge Brexit in March, the German car industry would face tariffs in its two largest export markets within a few months of each other. Daimler-Benz issued a profit warning last week, and this only in relationship to the expected rise in Chinese tariffs on Mercedes cars made in the US. Just imagine what might happen once the US levies tariffs on European cars sometime in 2019, and possibly only a few months after Brexit. If the UK were to join in a tariff war, the industry would suffer the commercial equivalent of a cardiac arrest. This would come on top of an escalating diesel emission scandal. Mercedes may need to recall 774,000 cars to remove software-cheating devices… Of course, the EU is not negotiating Brexit for the benefit of German industry. Nor should it. Angela Merkel said after the 2016 Brexit referendum that she does not want industry bosses to intervene in these delicate negotiations. But the German chancellor does not have the political room for manoeuvre she needs to persevere with a stance that could risk the loss of hundreds of thousands of jobs. – Wolfgang Münchau for the FT (£) Catherine Neilan: Two years on, are we any closer to actually leaving? Matthew Elliott, chief executive of the winning campaign, takes a more considered view. He believes the majority of progress will be made “in the final few weeks, if not days or hours”, dismissing any suggestion that not enough work has been done in the last two years. “It’s very easy to be an armchair general but you don’t have all the details,” he says. While Elliott has a few quibbles with some of the decisions that have been made over the last two years – in particular May’s decision to freeze out business voices prior to the election and her reluctance to give status guarantees to EU citizens – he sees no sign of wobbles over leaving the Single Market or customs union because of the knock-on effects it would have on the UK’s ability to sign trade deals with other countries… Others, however, are less confident. Brexit specialist at the Institute of Economic Affairs, Shanker Singham, who has been influential in shaping policy, says a change of strategy is needed. “We have to retake the initiative,” he says. “We have allowed the EU to drive the agenda so far. The only way for the UK to do that is put text on the negotiating table. The time for speeches and white papers is over.” – Catherine Neilan for City A.M. Trade guru Shanker Singham quits DIT advisory committee over role at lobbying firm – The Times (£) Leo McKinstry: A second EU vote is the last thing that Britain needs As part of their so-called “summer of action”, the Remoaners held a demonstration against Brexit on Saturday in London. The rally was said by its organisers to have attracted about 100,000 people, though that figure is dwarfed by the 17.4 million who voted for Brexit. What was so striking about the mood of the event was its mixture of deluded sanctimony, terror of national freedom and contempt for democracy. This was the march of the reactionary defeatists, who show far more attachment to the European Commission than to their own nation. The nominal demand of the protesters was for another EU referendum on the terms the Government agrees for leaving the EU. That is a fatuous call. Democracy is not a system where you keep holding a ballot until you get the result you want, much as the EU might like that. But in reality Remoaners do not care about votes at all. They simply want Brexit to be rejected by any means possible. “The only option is Remain,” one banner declared. – Leo McKinstry for the Express Daniel Hannan: A manifesto to bring the nation back together after Brexit Before polling day, the two sides had had relatively civil disagreements about trade, defence, budget contributions and so on. But when the results came in, a frenzy seemed to seize the nation. A mob attacked Boris Johnson at home, banging on his car as he drove away. Howling demonstrators surrounded Parliament. Leavers began to use unconscionable language: “sabotage”, “traitors”, “enemies of the people”. Remainers disseminated false stories about racist incidents, creating precisely the hostile atmosphere they were complaining about… A captious nation divided against itself. Every dot and comma of policy was contested disproportionately, like some desolate strip of mud between dreary trench lines. Eurocrats looked on in joyful disbelief. All they had to do was keep saying “no”. Whenever Britain offered friendly collaboration – on policing, intelligence, satellites, you name it – Michel Barnier would dismiss it out of hand… So each Barnier “non”– and they were delivered with increasingly flagrant contempt – was bizarrely cheered by British Europhiles, or at least seized on as another club with which to whack the Government… Snarled in our two-year quarrel, we have given pitifully scant thought to how to prosper after Brexit. We should be cutting taxes, not raising them. We should be making takeovers easier, not harder. We should be repealing regulations, not fussing about gender quotas and workers on company boards. But these discussions have not even begun. – Daniel Hannan MEP for the Telegraph (£) Brendan O’Neill: Theresa May must put the great back in Brexit — as we’ve lost control of the narrative despite winning the vote Brexiteers have a problem: We won the vote but lost control of the narrative. We stormed to victory in the referendum two years ago but we have been defeated in the world of political opinion. We have allowed Brexitphobic catastrophists to dominate the discussion about Britain’s exit from the EU. These non-stop naysayers may have lost on June 23, 2016, but they are writing the story of Brexit… Even pro-Brexit politicians rarely challenge their unhinged cries about Brexit being the worst thing to befall Europe since Hitler. Instead they meekly say: “We’ll make it work.” Enough. We need to reclaim the story of Brexit. We voted to take back control from Brussels — now we should take back control of the narrative about Brexit Britain. We need some Brexit Pride. We need to say Brexit is “good”, and in keeping with Britain’s great radical traditions… Many of us felt great joy, because it made us feel like real democratic citizens, possibly for the first time. We changed the course of history. We used our votes — the only real power we have — to alter the destiny of the nation. We should remember how that made us feel as we stir up some Brexit Pride. – Brendan O’Neill for The Sun Jeremy Warner: To be raising taxes just as we leave the EU is an act of industrial madness At this stage, Airbus’s intervention should be seen as no more than muscle flexing to put further pressure on the Government to keep Britain in the single market and customs union. Nonetheless, any business of size would be derelict in its duties if it wasn’t indeed planning for a worst case outcome. About the only organisation not making such preparations seems to be the Government. Philip Hammond, the Chancellor, promised £3bn for the purpose. But there is scant evidence of any such government preparation going on… UK taxpayers were warned last week that they would have to pay a bit more to support our National Health Service. It is easy to sympathise with the UK Chancellor’s dilemma. More so than ever in a post-Brexit world, he must be seen to be balancing the books. But higher taxes are the very last thing the UK needs as it moves towards a wholly independent future. To the contrary, it needs to be thinking about big tax breaks to persuade the likes of Airbus to stay, together with lower taxes and easily accessible work permits to attract the global talent required to keep such industries in the game. – Jeremy Warner for the Telegraph (£) Brexit in brief Brexit’s Big Short: How pollsters helped hedge funds beat the crash – Bloomberg The EU’s on the back foot now, let’s press the advantage – Doug Nicholls of Trade Unionists Against the EU for the Morning Star French regulator rules out campaign to restrict UK fund managers – FT (£) Scottish fruit and veg sector ‘can grow from Brexit’ – The Times (£) Ineos in talks with UK government over expanding Hull plant – FT (£) Soubry’s constituency association chairman canvassing membership’s support – Guido Fawkes First image of Benedict Cumberbatch as Vote Leave campaign director Dominic Cummings revealed – Telegraph