Customs Bill passes despite Tory Remainer backlash after May accepts Brexiteer amendments: Brexit News for Tuesday 17 July

Customs Bill passes despite Tory Remainer backlash after May accepts Brexiteer amendments: Brexit News for Tuesday 17 July
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Customs Bill passes despite Tory Remainer backlash over May climbdowns…

Theresa May has only just squeezed through a series of tight House of Commons votes on key legislation, after stirring up a Tory Remainer backlash by siding with her party’s Brexiteers. Although the final majority was fairly comfortable on the third reading of the customs bill, a series of amendments, demanded by Leave-supporting Conservatives on post-Brexit customs arrangements, only just scraped through. Mrs May also suffered another ministerial resignation as the other side of her fractious party reacted with anger… MPs subsequently voted in favour of both amendments to the customs bill, formally known as the Taxation (Cross-Border Trade) Bill, but with a narrow majority of just three votes in each case due to a sizeable rebellion by Tory Remainers. Siding with Labour to vote against the Brexiteers’ demands, 14 Conservatives sought to defeat the EU tariffs amendment, while 11 Tories also voted against the ERG’s amendment on VAT. Both amendments passed thanks to the help of a small group of Labour Brexiteers. – Sky News

  • Theresa May wins knife-edge Brexit vote but Defence Minister Guto Bebb resigns – ITV News
  • Theresa May narrowly avoids House of Commons defeat as Tory split worsens – Politico
  • Theresa May in fresh Commons battle as defence minister quits as crucial Brexit bill squeaks through – The Sun

…as Tory eurosceptics say they have ‘killed off’ the Chequers plan after Government accepted their amendments…

Tory Eurosceptics claimed to have killed off Theresa May’s Chequers deal on Monday night by forcing her to make changes that will leave it “dead on arrival” in Brussels. The Prime Minister was forced to deny that her Brexit blueprint was fatally compromised after she caved in to four demands from Leave supporters in order to avoid a Commons rebellion over a key piece of Brexit legislation… One senior Conservative warned that the Brexit plan amounted to an “existential issue” for the Tory party which risks being wiped out at the next general election if it is seen as “betraying 17.4 million people”… Brexiteers in the Tory party celebrated after Mrs May accepted four amendments to the customs bill tabled by Jacob Rees-Mogg, leader of the European Research Group of Eurosceptic Tory MPs, and others… Sources in Brussels said all of Mrs May’s customs suggestions had been rejected, so the amendments made no difference to the chance of a deal being agreed. – Telegraph (£)

  • Tory Eurosceptics say they have ‘killed off’ Theresa May’s Brexit compromise after she backs down – Telegraph
  • Theresa May’s Brexit plan in turmoil over rebel amendments – The Times (£)
  • Scott Mann becomes the latest PPS to resign in opposition to May’s Brexit plan – ConservativeHome
  • Is Chequers plan dead already? – Robert Peston for ITV News
  • The return of the Brexit fudge – Katy Balls for the Spectator

> WATCH: May insists Brexiteer amendments don’t kill Chequers plan

…while Remainers prepare a fresh revolt on the Trade Bill today…

Under the new rebellion, pro-EU ex-ministers Nicky Morgan and Stephen Hammond’s amendment to the Trade Bill – tabled jointly with two Labour MPs – establishes a backstop to Mrs May’s new plan. It forces her to agree to agree to join a customs union with the EU if she fails to persuade Brussels to allow Britain a free trade area on goods by January 21, 2019 – two months from Brexit day. A pro-EU rebel source told The Sun on Monday night that “more than 10” Tory MPs will vote for the soft Brexit push, which will be “enough of us” to defeat Mrs May ‘s wafer thin majority if Labour also back the move. The source added: “We weren’t set on pushing the amendment before the Government gave in to the ERG”. Ms Morgan and Mr Hammond’s amendment sparked serious alarm in Downing Street on Monday night, as it would wreak havoc on Mrs May’s entire negotiating strategy if passed. A No10 source said: “It risks incentivising the EU not to negotiate if they know that not playing ball ends with us being forced into a customs union”. – The Sun

  • Remainers accuse May of surrendering to ‘malevolent’ Tories – The Times (£)

…as May seeks to end the “febrile” atmosphere by bringing forward the parliamentary recess by five days

Theresa May launched an extraordinary bid to shut down leadership plotting against her by giving MPs an early holiday. The Commons will today vote on an unprecedented motion to end the parliamentary term this Friday – five days earlier than planned. The Sun can reveal that Mrs May will instead to summon her Cabinet to Newcastle on Monday for a emergency “Away Day” after days of open warfare at the top of Government. But the controversial “guillotine” measure will see MPs given an extra long summer break – in a bid to end the “febrile” atmosphere in Westminster. A leadership challenge is impossible under Conservative Party rules when the House of Commons is not sitting… But the PM faced fresh humiliation after two prominent Tory backbenchers vowed to vote against her early holiday plans. Nick Boles and Sir Nicolas Soames took to social media to slam Mrs May’s desperate bid to quell rebellion. – The Sun

  • Theresa May can survive this week, but the summer holidays will not provide lasting calm – Asa Bennett for the Telegraph (£)

David Davis warns that Government will ‘throw away’ opportunities of Brexit if it sticks to Chequers plan…

David Davis tonight blasted Brexit naysayers for missing out on the opportunities of leaving the EU – because they’re terrified of the risks. The former Brexit Secretary used his first Commons speech since quitting the Cabinet to hit out at the Government’s white paper which was thrashed out at Chequers. But he avoided criticising Theresa May directly – avoiding the opportunity of leaving the PM fatally wounded by calling for her to resign… But he did take aim at ministers for pledging to keep Britain closely tied to the EU after Brexit – all because they’re terrified of a hard border in Ireland. Mr Davis said: “There’s no way however that a UK Government is ever going to install a hard border in Northern Ireland.” …He concluded: “What this proposal would do is try and deal with a problem which is less bad than they think, and in doing so throw away a power, throw away a right that is incredibly important – much, much more important than they think. They are trying to defend a false past – and giving up a real future.” – The Sun

  • David Davis says Britain risks ‘giving up a real future’ over Brexit – Telegraph

> WATCH in full: David Davis’ first speech since resigning as Brexit Secretary

…as May’s EU advisor Olly Robbins strips Brexit Ministry of top 50 negotiating staff following Davis’ resignation

Theresa May’s top EU advisor has stripped the Brexit Ministry of its 50 best negotiating staff in a new Whitehall power grab. Downing Street mandarin Olly Robbins mounted the raid after David Davis resigned as the DexEU boss last week. The talks experts are moving into the Cabinet Office under Mr Robbins’ direct command, boosting his powerbase. The move – revealed by The Sun today – severely reduces new Brexit Secretary Dominic Raab’s ability to set a course for the deliberations with Brussels. It has also deepened Leavers’ fears of an ongoing civil service coup after Mr Davis lost a power struggle with Mr Robbins for the PM’s ear on Brexit and was cut out of Brexit decision making. In a quid pro quo deal with Mr Raab to soften the blow, No10 has agreed to keep him fully consulted on negotiation decision making… But critics dubbed the concessions to Mr Raab a wheeze that will soon be ignored. A government insider added: “Olly has managed to pull off another landgrab. “It’s a significant weakening of Dom’s new department and another bureaucratic win for Olly. DexEU officials are beyond furious.” – The Sun

  • Nick De Bois replacing Stewart Jackson at DExEU – Guido Fawkes

Justine Greening’s call for second Brexit referendum is rejected by No 10…

Downing Street has rejected Justine Greening’s call for a fresh referendum on the UK’s exit from the EU, saying it will not happen “in any circumstances”. The former education secretary argued the final Brexit decision should be given back to the people and out of the hands of “deadlocked politicians”… Ms Greening, who supported Remain in the EU referendum, is the highest profile ex-Cabinet minister to call for a second referendum… Fellow Tory MP Sir Bernard Jenkin, who backed Leave in the referendum, said he agreed with Ms Greening that the PM’s plan was “dead” but described her call for a second vote as “a little ill-thought-out”. “If we wanted to extend the uncertainty for another long period this is one way of doing it,” he told Today. – BBC News

  • Theresa May vows ‘no second referendum under any circumstances’ after top Tory Justine Greening demands another Brexit vote – The Sun
  • No 10 rules out second Brexit referendum – The Times (£)
  • A second Brexit referendum is a beguiling idea – and one that would prove completely disastrous for Britain – William Hague for the Telegraph (£)
  • The political barriers to a second European referendum make it a risky pursuit – Times leader (£)
  • Second Brexit vote was always the Remainers’ game plan — we must not let it happen – The Sun says

…as a poll reveals Brits would rather quit the EU with no deal than back Theresa May’s Brexit plans…

The Prime Minister’s plans are so hated that 40 per cent of Brits think we shouldn’t be afraid to cut all ties and go it alone. As Mrs May struggles to quell a rebellion in her party over her Chequers plans – which have been attacked by both Remainers and Leavers – it has emerged that the public aren’t behind her ideas… Today a fresh poll says twice as many voters want Britain to leave the EU without a deal than support Mrs May’s ideas… And the plans seem to have had a negative effect on the Tories’ poll ratings too. Last weekend a new Observer poll had Labour edging ahead to 40 per cent, while the Tories dropped down to 36 per cent. And Ukip’s support has show up from three percent to eight per cent too, showing the current sentiment of people who don’t like Mrs May’s deal and could swing back to the Eurosceptic party. – The Sun

> NEW BrexitCentral podcast: Nigel Farage says Brexit backlash will be “unlike anything we’ve seen”

…while May summons local party leaders to No. 10 in a bid to head off rebellion

Conservative association leaders have been summoned to Downing Street in an attempt to quell a grassroots backlash against Theresa May’s Brexit plan. The chairmen and women have been invited to briefings today and tomorrow after claims that MPs have been spooked by complaints from members and voters about the strategy agreed at Chequers… Gavin Barwell, Mrs May’s chief of staff, has already had a conference call with regional leaders. One participant said Mr Barwell got “spanked”, adding: “Most associations had polled between 70 and 80 per cent opposed to the plan.” – The Times (£)

  • CCHQ begs Association Chairmen to publicly support Chequers – Guido Fawkes
  • Grassroots rebellion – Downing Street is starting to realise the scale of Tory opposition to the Chequers plan – Mark Wallace for ConservativeHome

Theresa May could sue the European Union for not doing enough to stop no-deal Brexit disruption…

The European Union could be taken to court if it fails to minimise any disruption to trade caused by Britain having to leave without a deal. This comes after Theresa May revealed over the weekend that she had been advised by Donald Trump last year to “sue the EU”, with legal experts pointing out to this newspaper that she could have picked such a legal fight over the “phasing” of the talks. The EU agreed five years ago, as a member of the World Trade Organisation, to put in “additional trade facilitation measures related to import, export, or transit formalities and procedures” in order to minimise any delays to trade with another country… However, many member states will reportedly not have enough customs inspectors in place to handle the extra workload arising from ‘no deal’ Brexit for at least a year after Britain departs in March 2019. – Telegraph (£)

  • No Deal Brexit card is already on the table for Theresa May — the widely misunderstood WTO – Roger Bootle for The Sun
  • Business should now get behind ‘no deal’ with the EU – Matthew Lynn for the Spectator

…as President of French region including Calais calls on Macron to break EU ban on bilateral talks with UK

Xavier Bertrand, a former French minister and president of Hauts-de-France, has called on Emmanuel Macron to break the EU ban on bilateral talks to salvage the situation and asked Theresa May to discuss prospects. “The way things are going, we are going to be left standing staring at each like strangers. It’s madness, pure utter madness,” he said… “It is against the negotiating rules at the moment but not to talk is an error,” he said. “The French and British governments have to talk to each other to find a solution, otherwise we are heading for something catastrophic. Both governments need to talk to each other to find solutions.” … In the absence of advanced planning on the British side, he revealed that Calais was prepared to solve the problem of space for checks in Dover. It has already brought 17 hectares (42 acres) of land, which could house inspection posts for sanitary checks and logistics warehouses. France is planning to recruit 700 new customs officials, some of whom will be in Calais. – Guardian

Brexodus is not happening, suggests ONS – despite EU net migration falling to 100,000

Brexodus is not happening, the Office for National Statistics has suggested despite net migration of citizens from the EU falling to 101,000 – the lowest level for four years. The number of EU migrants coming to the UK in the year to December 2017 fell by 9,000 to 240,000, while the number leaving rose by 23,000 to 139,000. However the Office for National Statistics said that the fall is not “statistically significant” and highlighted the fact that many more EU citizens are coming to the UK than leaving… Jay Lindop, Deputy Director of the ONS’s migration division, said: “Much has been written about EU citizens leaving the UK, but the fact is there are still more people coming to the country from the EU than leaving it. In fact, the last quarter shows that around 100,000 more EU citizens are coming to the UK than leaving.” – Telegraph

  • Net migration rises as more arrive from outside the EU – The Times (£)
  • UK will lose track of many EU migrants after Brexit, according to report – BBC News

Electoral Commission announces conclusion of its investigation into Vote Leave

Vote Leave has been fined £61,000 and reported to the police by the Electoral Commission, after the watchdog found “significant evidence” of coordination with another campaign group, BeLeave. The watchdog said Vote Leave’s fines were punitive because it said the group had refused to co-operate fully with its investigation and declined to be interviewed. Its former chief executive Matthew Elliott had previously alleged the Electoral Commission had been the ones to refuse co-operation… He said Vote Leave was contesting the claims and accused the watchdog of “a highly political agenda.” He said his group followed “the letter of the law and spirit of the law” and alleged that the Commission had not interviewed senior figures from Vote Leave. He told the BBC he had submitted a 500-page dossier to the Electoral Commission rebutting the claims. – Guardian

A Vote Leave spokesperson said: ‘The Electoral Commission’s report contains a number of false accusations and incorrect assertions that are wholly inaccurate and do not stand up to scrutiny. It is astonishing that nobody from Vote Leave has been interviewed by the Commission in the production of this report, nor indeed at any point in the past two years, despite Vote Leave repeatedly making it clear they are willing to do so. Yet the Commission has interviewed the so-called ‘whistleblowers’ who have no knowledge of how Vote Leave operated and whose credibility has been seriously called into question. Vote Leave has provided evidence to the Electoral Commission proving there was no wrongdoing. And yet despite clear evidence of wrongdoing by the Remain campaign, the Commission has chosen to ignore this and refused to launch an investigation. All this suggests that the supposedly impartial Commission is motivated by a political agenda rather than uncovering the facts. The Commission has failed to follow due process, and in doing so has based its conclusions on unfounded claims and conspiracy theories. We will consider the options available to us, but are confident that these findings will be overturned.’

  • Observer makes yet another Cadwalladr correction – Guido Fawkes

> Previously on BrexitCentral: The inconsistent and inaccurate claims of the Brexit ‘whistleblower’

Trade Secretary Liam Fox reveals public will be able to vote on controversial parts of post-Brexit trade deals

The public will be given the the chance to block controversial parts of future trade deals, Liam Fox has announced. The Trade Secretary told MPs every single potential new alliance will be subject to a separate “listening exercise” in a bid to buy consent from business chiefs, unions and voters. He said: “For the first time in over 40 years the UK will have the chance to decide who we trade with and on what terms. Those decisions must work of the whole of the UK, and that is why we are making this unprecedented commitment to transparency and inclusiveness.” He added: “The more input we get on these, the better they will be.” – The Sun

Teesside Mayor champions free port status as route to post-Brexit prosperity

Disenchantment with London-dominated politics and economic priorities is palpable in the area, which voted overwhelmingly to leave the EU in the 2016 referendum. Many here see Brexit as an opportunity to revitalise Teesside’s industry and are calling for the government to support the establishment of a Tees Valley free port — a large designated zone where goods can enter tariff-free, be processed or manufactured and re-exported. “If we get this right we could see the reshoring of manufacturing jobs that we haven’t seen for decades,” said Ben Houchen, the Conservative elected mayor of Tees Valley. His plan, which he says will mean more jobs for local people, is based on the UK leaving the EU single market. It would offer exemptions from operational, regulatory and customs requirements… “The white paper sets out the government’s position, but this won’t be the final deal we sign on the dotted line,” he said. “I will continue to push the case for free ports in the UK, which means leaving the customs union and the single market properly.” – FT (£)

> Ben Houchen previously on BrexitCentral: The Tees Valley relishes the opportunities of Brexit – which is why we want a Free Port in Teesside | The North won’t stand for a half-baked Brexit

William Hague: A second Brexit referendum is a beguiling idea – and one that would prove completely disastrous for Britain

So if we held a second referendum we would have indecision for another year at least, with the prospect of a mass of new and difficult options at the end of it. That, however, isn’t the worst of it. More worrying still is the damage it could inflict on democracy in the United Kingdom. This would be Parliament saying that even though the country reached a verdict after a long campaign, with a record turnout and a decisive margin, it is not capable of delivering it; that the state cannot honour the wishes of its citizens. Faith in our democratic processes would be correspondingly and severely affected. Added to this disillusionment would be the effects of a bitterly divisive and vituperative campaign, likely to exceed in its all-round animosity anything we have witnessed in recent decades. Being asked to vote again would to millions of people be a betrayal, the result of establishment resistance to the popular will… Families, communities, political parties and the nations of the UK would be divided seriously and bitterly. It isn’t worth it. This country can be a success inside or outside the EU but it can’t prosper or be a happy place to live with ever-deeper polarisation and resentment. We need mutual respect and a degree of political cohesion to function well as a society. It’s time to accept the decision already made, understand that it can only be implemented with a lot of constraints, and move on to making the best of it. – Lord Hague for the Telegraph (£)

The Sun: Second Brexit vote was always the Remainers’ game plan — we must not let it happen

A second Brexit vote was always the elite Remainers’ game plan. Now, with the ­Government in disarray, they have unveiled it for serious discussion. After two years rubbishing referendums they want another one, a replay. The “facts” have changed, they shriek. Except they haven’t. Theresa May’s proposal to the EU isn’t the grim “reality” of Brexit. It is merely what happens when negotiated ineptly, by Remainers. They further argue we should choose between no-deal, Mrs May’s proposal or staying in. Why? The first vote determined we were leaving. The only reasonable choice would be deal or no deal… Overturning the 2016 referendum result before it had even been carried out would collapse all faith in democracy itself. – The Sun says

Peter Foster: Attack, parry or retreat – how will the EU respond to Theresa May’s Chequers nightmare?

For months the EU has alternated between lampooning and lambasting Britain’s chaotic handling of the negotiations, but Mrs May’s position now presents the EU with an increasing dilemma of its own as the clock ticks down to Brexit Day… But EU sources are clear that UK concessions do not automatically lead to equal and opposite EU concessions. “It doesn’t work like that,” said one senior EU negotiator flatly. Instead, EU officials are clear that Chequers is not close to a workable final solution. A Common Rule Book, for instance, could not give the UK any influence over the “autonomy of EU decision-making” (ie a say on those rules) nor open the door to the UK harmonising only on those goods where it suited UK interests… The softer option for Brussels is to play for time, recognising that while Olly Robbins, the UK’s chief Brexit negotiator, finally has a text to negotiate, his boss in London clearly has no political mandate to deliver any deal. In this scenario, EU officials say they could go through the motions of a negotiation, taking on the White Paper line by line as a means of probing where the UK might be prepared to “further evolve” its positions… Which brings us to the EU’s third option: make a tactical retreat on Chequers until the UK politics becomes clearer and focus instead on the much narrower target of concluding a divorce deal – the so called Withdrawal Agreement – this autumn. – Peter Foster for the Telegraph (£)

Brexit in brief

  • The EU is the cuckoo in the WTO nest – Sir Peter Marshall for ConservativeHome
  • The Tory government has fallen for the EU’s nonsensical demands on social and employment laws – Ryan Bourne for City A.M.
  • An audience with Jacob Rees-Mogg: Britain’s Brexit cheerleader – Financial News
  • We have a chance to finish what we started and give communities the power they seek – Gisela Stuart for The Times (£)
  • May’s Brexit position will crumble so Article 50 should be delayed – Nick Clegg for the FT (£)
  • Farnborough Airshow audience assured Brexit strategy has wings – The Times (£)