Customs Union Concession Could Break Brexit Deadlock, Justice Secretary Hints

Theresa May appeared to be edging towards a softer Brexit after a cabinet minister and Labour both signalled that an EU customs union could break the parliamentary gridlock.

As the prime minister prepared to embark on a round of cross-party talks to find a way out of the Brexit impasse, Justice Secretary David Gauke suggested the government could be “flexible” about keeping Brussels customs rules.

In the first such public remarks by any minister backing the idea, Gauke said the government shouldn’t be “boxing ourselves in” by sticking to key parts of the deal that was massively defeated in the Commons on Tuesday.

Jeremy Corbyn’s spokesman also said that backing a customs union with the EU would be “a game-changer” in the battle to find a “plan B” that would command the support of MPs.

And with Brussels warning the UK it had to come up with a consensus before any new talks could take place, backers of a Norway-style exit – putting trade before immigration curbs – seized on the shift as proof that the debate was moving their way.

Gauke told the BBC he still supported the government’s policy of leaving the EU customs union but added “we need to be prepared to be flexible”.

“At this stage I don’t think it’s about boxing ourselves in, we need to work out where the balance of opinion is,” he said.

“What we need to be doing is engaging across Parliament, seeing what ideas emerge, seeing where the support is for those particular ideas and at that point we then need to make an assessment.

“Is there something which is both negotiable with the European Union and something which could have the majority support in the House of Commons. [It’s] about deciding where the numbers are.” 

Earlier, May refused to categorically rule out delaying exit day, due on March 29.

And as MPs scrambled to find a solution that could command a Commons majority, Shadow Chancellor John McDonnell said that the two-year Article 50 timetable for Brexit could be changed.

“Extending article 50 is on the agenda and needs to be considered now,” McDonnell told BBC Radio 4.

Corbyn’s spokesman said: “It’s a game changer in the sense that it would fundamentally alter the nature of the deal and it is a key part of our alternative plan.”

Asked if Labour could accept May’s withdrawal agreement if the customs union was inserted into a future political deal with the EU, the spokesman replied: ”Our alternative plan has three pillars, three key elements. It would not mean starting the negotiations again from scratch, the building blocks for those elements are all there.

“It’s about changing the red lines and changing the negotiating priorities and we are convinced that it would be relatively straightforward on most of what we’re talking about to reach agreement.”

One Tory MP said that there could be 300 MPs across different parties ready to back a Norway-style Brexit with membership of the European Free Trade Association (EFTA).

Lucy Powell, who has teamed up with Tory Rob Halfon to publish a pamphlet calling for a softer Brexit, told HuffPost UK that Gauke’s words were “a significant and welcome shift”.

“If the prime minister is serious about reaching out and building a consensus, then she must be prepared to look at all options. She cannot simply retain her red lines,” she said.

“Many, many MPs, including Jeremy Corbyn, are prepared to talk to reach an agreement but that requires a very different strategy from her than she has hitherto adopted. It’s good to see other cabinet ministers realise this.”

One Labour MP added: “It’s definitely game-on for Common Market 2.0. There are growing calls from people who don’t want another referendum now May’s deal is dead. To be fair to Jeremy, he reflects a bigger body of opinion in trying to hold the PLP together on this.”

No.10 stressed that Gauke had reiterated government policy that leaving the customs union would be to the UK’s advantage. 

“The PM set out the principles that are going to govern our approach to these talks. and one of the principles, which is the government’s position, is that we want the ability to do new trade deals.”

Asked if the PMs ‘principles’ were negotiable, the PM’s political spokesman said: “We want to see talks with senior Parliamentarians and other voices in the House of Commons to start quickly.

“And we have set out the approach that we are going to take to those talks. And that’s where we are. Let’s not pre-empt the outcome of the talks before we have them.”