May sees off rebellion on customs union as amendment is defeated

https://www.theguardian.com/politics/2018/jul/17/theresa-may-sees-off-rebellion-customs-union-amendment-defeated

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Theresa May has seen off a damaging Commons rebellion as Tory remainers narrowly lost a long-awaited vote on the customs union – but earlier suffered her second ever Brexit defeat, on European medicines regulation.

The prime minister avoided all-out Tory civil war and the wrath of the Eurosceptic wing of the party less than 24 hours after she capitulated to concessions that they believed had killed off her Chequers plan.

MPs voted 307 to 301 to overturn an amendment to the trade bill under which Britain would be forced to join a customs union with the EU if no agreement were reached on frictionless trade by 21 January 2019.

But it came just minutes after the government suffered a humiliating and unexpected defeat with MPs voting 305 to 301 on a rebel amendment that would lead to the UK remaining under EU medicines regulation.

In extraordinary scenes, the trade minister George Hollingbery engaged in open negotiations with the customs union rebels from the dispatch box, offering them a Lords amendment for a “customs arrangement” backstop if they backed down.

The former minister Stephen Hammond, who tabled the new clause along with his fellow remainer rebel Nicky Morgan, rejected the compromise, insisting that the government instead accept his plan and water it down later.

The Tory rebels had claimed their amendment offered a safeguard in the event of there being no trade agreement with the EU in the run-up to Brexit on 29 March next year. It had also won the backing of Labour and the SNP.

Downing Street said that May had been clear that leaving the customs union was necessary to enable trade deals with other countries. One No 10 source said a January deadline could disincentivise Brussels from agreeing a deal before then.

But Tory remainers said their proposal was “exactly in line” with the Brexit white paper. Hammond told MPs: “This does not undermine the bill, it keeps it on the road.”

Morgan said: “What we are proposing is eminently sensible. It is very clear that in this house there is a majority for a customs union to safeguard businesses and our constituents in future.”

Leavers led by Jacob Rees-Mogg forced the government on Monday to back four amendments to Brexit legislation, including one intended to scupper May’s plans for a new customs deal. The concession infuriated Tory remainers.

May was already debating her next move after No 10 denied that the hardline Brexiters’ changes destroyed her Chequers plan, which had already been facing a precarious path through the Commons. It remains far from clear whether Brussels will accept her plans.

The government majority was reduced to just three votes on the two most controversial amendments on Monday night. The Liberal Democrat leader, Vince Cable, and his predecessor Tim Farron were both criticised for missing the vote.