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Theresa May caves in to hardline Brexiters' demands Theresa May caves in to hardline Brexiters' demands
(35 minutes later)
Theresa May has caved in to hardline Brexiters and accepted all four of their amendments to the customs bill, rather than allow Jacob Rees-Mogg and colleagues to stage a show of parliamentary strength.Theresa May has caved in to hardline Brexiters and accepted all four of their amendments to the customs bill, rather than allow Jacob Rees-Mogg and colleagues to stage a show of parliamentary strength.
No 10 indicated that ministers would tell the House of Commons this evening that the government had accepted all four amendments to the bill put by members of the hard Brexit European Research Group (ERG) . No 10 indicated that ministers would tell the House of Commons on Monday evening that the government had agreed to all four amendments put by members of the hard Brexit European Research Group (ERG) .
A Downing Street spokesman said the amendments “were consistent with the Brexit white paper” and that the government supported them when the taxation (cross border trade) bill is debated by MPs tonight. A Downing Street source said the amendments “were consistent with the Brexit white paper” and that the government supported them when the taxation (cross border trade) bill is debated by MPs on Monday. The result is that Tory Brexiters will not be able to stage a vote of rebellion, but comes at the price of Downing Street accepting an amendment that the ERG had claimed would kill off May’s “facilitated customs arrangement”.
The result is that Tory Brexiters will not be able to stage a vote of rebellion, but comes at the price of Downing Street accepting an amendment that the ERG had claimed would kill off May’s “facilitated customs arrangement”.
The critical amendment insisted that HMRC could not collect duties or VAT on goods on behalf of the European Union unless there was a reciprocal arrangement, which the Brexiters believed would kill off the customs plan because the EU would reject it.The critical amendment insisted that HMRC could not collect duties or VAT on goods on behalf of the European Union unless there was a reciprocal arrangement, which the Brexiters believed would kill off the customs plan because the EU would reject it.
Earlier in the day, Downing Street had suggested it had concerns about this amendment and its impact on the customs plan. But after Rees-Mogg, the leader of the rebels, held talks with the party’s chief whip, Julian Smith, No 10 said it would accept the amendment and three others, so avoiding an embarrassing clash with backbenchers. Earlier in the day, Downing Street had suggested that it had concerns about this amendment and its impact on the customs plan. But after Rees-Mogg, the leader of the rebels, held talks with the party’s chief whip, Julian Smith, No 10 said it would accept the amendment and three others, so avoiding an embarrassing clash with backbenchers.
As the prime minister tried to sell her Chequers deal on Brexit to the public and her own backbenchers, the ERG tabled its amendments last week. As the prime minister last week tried to sell her Chequers deal on Brexit to the public and her own backbenchers, the ERG tabled its amendments. Rebels were threatening to stage a show of strength, in which the number of MPs willing to back the ERG amendments would have been interpreted as a proxy for the number of MPs hostile to May’s Brexit strategy after she unveiled a new approach at Chequers 10 days ago.
The other three amendments, including one making it illegal to establish a customs border in the Irish Sea, harden stated government policy into law and were not deemed by No 10 to be controversial.
The ERG believed May’s “facilitated customs arrangement”, which would see the UK collect EU tariffs on some imports, and plans for a “common rulebook” for goods and agriculture, would allow for too close a future relationship with the EU27.The ERG believed May’s “facilitated customs arrangement”, which would see the UK collect EU tariffs on some imports, and plans for a “common rulebook” for goods and agriculture, would allow for too close a future relationship with the EU27.
Tory remain rebels reacted with fury to the concessions. “It’s appalling. Utterly appalling. Jacob Rees-Mogg is running our country,” said one MP. Tory remain rebels reacted with fury to the concessions, and said they would vote against some of the ERG amendments, in their own show of strength. Heidi Allen said: “I will never give ERG my backing”, adding that she would vote against two of their amendments, which she said “fundamentally undermine the Chequers proposal and our PM”.
The other three amendments, including one making it illegal to establish a customs border in the Irish Sea, harden stated government policy into law and were not deemed to be controversial. A separate soft Brexit amendment, calling for the UK to remain in “the EU customs union” was also withdrawn on Monday evening, although it had not been expected to be carried because while it had the support of Labour, the SNP and the Lib Dems, only a couple of Tory MPs, Anna Soubry and Ken Clarke, had put their names to it.
A Downing Street spokesman defended the Chequers deal on Monday, saying it was, “very clear that the proposal we put forward at Chequers delivers on the will of the people in the referendum”. Scott Mann, the MP for North Cornwall, on Monday became the latest Conservative MP to resign a government post over the Chequers deal, in a rolling protest from concerned backbenchers.
“Cabinet is behind it, businesses have come out to support it and now we need to get on with negotiating with the EU,” the spokesman said.
Scott Mann, the MP for North Cornwall, became the latest Conservative MP to resign a government post over the Chequers deal on Monday, in a rolling protest from concerned backbenchers.
Mann, a parliamentary private secretary at the Treasury, said in his resignation letter: “Elements of the Brexit white paper will inevitably put me in direct conflict with the views expressed by a large section of my constituents.”Mann, a parliamentary private secretary at the Treasury, said in his resignation letter: “Elements of the Brexit white paper will inevitably put me in direct conflict with the views expressed by a large section of my constituents.”
WHO'S IN:WHO'S IN:
Jeremy HuntJeremy Hunt
The longest-serving health secretary - having held the role for almost six years - becomes foreign secretary after Boris Johnson's resignation.The longest-serving health secretary - having held the role for almost six years - becomes foreign secretary after Boris Johnson's resignation.
Matt HancockMatt Hancock
The former culture secretary replaces Hunt as health secretary.The former culture secretary replaces Hunt as health secretary.
Jeremy WrightJeremy Wright
The former attorney general takes on Hancock’s old job as culture secretary.The former attorney general takes on Hancock’s old job as culture secretary.
Geoffrey CoxGeoffrey Cox
The Devon MP is promoted to be attorney general and will attend cabinet.The Devon MP is promoted to be attorney general and will attend cabinet.
Dominic Raab Dominic Raab 
The former housing minister is promoted to Brexit secretary after the resignation of David Davis.The former housing minister is promoted to Brexit secretary after the resignation of David Davis.
WHO'S OUT:WHO'S OUT:
David DavisDavid Davis
Goes to the backbenches after kicking off the ministerial reshuffle with his resignation as Brexit secretary over Theresa May's negotiation plans.Goes to the backbenches after kicking off the ministerial reshuffle with his resignation as Brexit secretary over Theresa May's negotiation plans.
Boris JohnsonBoris Johnson
The gaffe-prone and controversial foreign secretary joins Davis on the backbenches after also quitting his role.The gaffe-prone and controversial foreign secretary joins Davis on the backbenches after also quitting his role.
The prime minister was at Farnborough airshow on Monday morning, before heading back to Westminster to report to MPs on last week’s Nato summit. Dominic Grieve, a Tory remainer, gave reluctant backing to the prime minister’s negotiating strategy, arguing that May was “doing her best to minimise the damage that flows from the decision to leave the European Union” and that her approach was a lot better than the alternative being promoted” by the hard Brexiters.
Writing in the Evening Standard, Grieve said that “in a deeply divided country we must either work together to get the best deal we can” and accept compromise, or the Tory right should “accept that Brexit cannot be implemented”.
Fears are growing at Westminster that there is now no Brexit deal – not the Chequers plan, nor David Davis’s Canada-style trade deal, nor a no-deal scenario – that could command the backing of a majority of MPs.Fears are growing at Westminster that there is now no Brexit deal – not the Chequers plan, nor David Davis’s Canada-style trade deal, nor a no-deal scenario – that could command the backing of a majority of MPs.
Had the ERG amendments been pushed to the vote, it would have given the government a sense of the likely rebellion it could face from hardliners, if it brings a soft Brexit deal to the Commons in the autumn.
A senior Labour source expressed surprise the government had not postponed debate on the customs bill and another Brexit bill, the trade bill, when it announced planned parliamentary business at the end of last week, rather than face the risk of a series of embarrassing defeats.
“They’re in a place where they don’t want votes that could look like a vote of confidence,” he said, adding: “The crunch might not come today but come the autumn there’s going to have to be a reckoning.”
Meanwhile, the former education secretary Justine Greening has become the most senior Conservative to lend her backing to the idea of a referendum to allow the public to have a say on the proposed Brexit deals.
Writing in the Times, the MP for Putney said the “only solution is to take the final Brexit decision out of the hands of deadlocked politicians” by letting voters choose from three options: May’s final deal, a no-deal Brexit or staying in the EU.
Greening proposed a system using first and second-preference votes to ensure the preferred model achieved more than 50% of the final vote.
Dominic Grieve, a Tory remainer, gave reluctant backing to the prime minister’s negotiating strategy, arguing May was “doing her best to minimise the damage that flows from the decision to leave the European Union” and that her approach was a lot better than the alternative being promoted by the hard Brexiters.
Writing in the Evening Standard, Grieve wrote that “in a deeply divided country we must either work together to get the best deal we can” and accept compromise, or the Tory right should accept that Brexit cannot be implemented.
BrexitBrexit
Theresa MayTheresa May
ConservativesConservatives
Jacob Rees-MoggJacob Rees-Mogg
European UnionEuropean Union
Foreign policyForeign policy
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