Theresa May hints at customs union shift ahead of Cabinet showdown

Theresa May has hinted that the Government could back a completely new type of customs agreement with the EU amid bitter Cabinet in-fighting.



The Prime Minister said there were "a number of ways" of maintaining frictionless trade with the EU after Brexit while also avoiding a hard Irish border - despite previously insisting she was only considering two possible alternations.

Downing Street also conceded that the Government's position was "evolving".

One alternative, known as the customs partnership, has already been rejected by Leavers including David Davis and Liam Fox, who claim it would leave the UK too closely tied to the EU after Brexit.

They have instead thrown their weight behind the second option, known as maximum facilitation, which would rely on as-yet unavailable technology to keen an open border in Ireland.

The Prime Minister is currently holding a crunch meeting with her Brexit war Cabinet in an attempt to thrash out an agreement to present to Brussels.

Pressed on the issue by Labour MP Karen Buck at Prime Minister's Questions, Mrs May said: "We will be leaving the customs union, we want to ensure that we can have an independent trade policy. We also want to ensure that we're commited to delivering on our commitment of no hard border between Northern Ireland and Ireland, and have as frictionless trade as possible with the European Union.

"There are a number of ways in which that can be delivered."

A spokesman for Mrs May said: "The PM said in the House that there are a number of ways of taking this forward and that's what we're working on.

"Work has been ongoing on two options. That work is proceeding. Ideas are obviously evolving as we go along."

Tory Brexiteers have warned Mrs May that she could be brought down as party leader if she throws her weight behind a customs partnership, which would see the UK collect tariffs on behalf of Brussels.

The Daily Telegraph reported that the 60 members of the arch-eurosceptic European Research Group - chaired by Jacob Rees-Mogg - have handed a 30-page dossier to the Prime Minister setting out their objections.

One ERG soource said: "We have swallowed everything so far – but this is it. If they don’t have confidence in Brexit we don’t have confidence in them. The Prime Minister will not have a majority if she does not kill off the NCP [New Customs Partnership]."