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Britain ‘held to ransom’ by Tories pushing for hard Brexit, Nicky Morgan warns in new alliance with Labour and Lib Dem heavyweights

Former Tory cabinet minister will share platform with David Miliband and Nick Clegg – as party allegiances break down over EU departure

Deputy Political Editor

Sunday 13 May 2018 08:49 BST

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What is the Brexit 'transition'?

Former cabinet minister Nicky Morgan is joining forces with Labour and Liberal Democrat heavyweights to warn that Britain is being “held to ransom” by fellow Tories hell bent on a hard Brexit.

David Miliband and Nick Clegg will share a platform with Ms Morgan in the starkest evidence yet that party allegiances are breaking down as battle rages over departure from the EU.

The former education secretary will condemn some of her fellow Conservatives for trying to set Britain on a “path to a fantasy island” of “economic pain” and diminished standing.

“Less than six months before the deadline for concluding the terms of our departure, hard-Brexit demands are holding the country’s negotiating position to ransom,” the trio have written in a joint article.

“Even a comprehensive free trade agreement with the EU predicted the UK will see growth drop by 5 per cent over the next 15 years compared with current forecasts, as a result of additional bureaucratic border checks.

“The ensuing economic pain will be felt in every part of the country. This is not Project Fear; it is project reality based on the government’s own analysis.”

The biggest issues facing UK on leaving EU

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1/8The biggest issues facing UK on leaving EU

The biggest issues facing UK on leaving EU

Post-Brexit immigration

workers sorting radishes on a production line at a farm in Norfolk. One possible post-Brexit immigration scheme could struggle to channel workers towards less attractive roles - while another may heighten the risk of labour exploitation, a new report warns.

PA

The biggest issues facing UK on leaving EU

Customs union

A key point in the negotiations remains Britain's access to, or withdrawal from, the EU customs union. Since the referendum there has been hot debate over the meaning of Brexit: would it entail a full withdrawal from the existing agreement, known as hard Brexit, or the soft version in which we would remain part of a common customs area for most goods, as Turkey does? No 10 has so far insisted that “Brexit means Brexit” and that Britain will be leaving the customs union, but may be inclined to change its position once the potential risks to the UK’s economic outlook become clearer.

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The biggest issues facing UK on leaving EU

Northern Ireland-Irish border

Though progress was made last year, there has still been no solid agreement on whether there should be a hard border between Northern Ireland and the Republic of Ireland. To ensure borderless travel on the island, the countries must be in regulatory alignment and therefore adhere to the same rules as the customs union. In December, the Conservative Party’s coalition partners, the DUP, refused a draft agreement that would place the UK/EU border in the Irish Sea due to its potential to undermine the union. May has promised that would not be the case and has suggested that a “specific solution” would need to be found.

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The biggest issues facing UK on leaving EU

Transition period

Despite protests from a small number of Conservative MPs, the Government and the EU are largely in agreement that a transitional period is needed after Brexit. The talks, however, have reached an impasse. Though May has agreed that the UK will continue to contribute to the EU budget until 2021, the PM wants to be able to select which laws made during this time the UK will have to adhere to. Chief negotiator Michel Barnier has said the UK must adopt all of the laws passed during the transition, without any input from British ministers or MEPs.

EPA

The biggest issues facing UK on leaving EU

Rights of EU citizens living the UK

The Prime Minister has promised EU citizens already living in the UK the right to live and work here after Brexit, but the rights of those who arrive after Brexit day remains unclear. May insists that those who arrive during the transition period should not be allowed to stay, whereas the EU believe the cut-off point should be later.

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The biggest issues facing UK on leaving EU

Future trade agreement (with the EU)

Despite this being a key issue in negotiations, the Government has yet to lay out exactly what it wants from a trade deal with the EU. Infighting within the Cabinet has prevented a solid position from being reached, with some MPs content that "no deal is better than a bad deal" while others rally behind single market access. The EU has already confirmed that access to the single market would be impossible without the UK remaining in the customs union.

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The biggest issues facing UK on leaving EU

Future trade agreements (internationally)

The Government has already begun trying to woo foreign leaders into prospective trade agreements, with various high profile state visits to China, India and Canada for May, and the now infamous invitation to US President Donald Trump to visit London. However the UK cannot make trade agreements with another country while it is still a member of the EU, and the potential loss of trade with the world's major powers is a source of anxiety for the PM. The EU has said the UK cannot secure trade deals during the transition period.

EPA

The biggest issues facing UK on leaving EU

Financial services

Banks in the UK will be hit hard regardless of the Brexit outcome. The EU has refused to give British banks passporting rights to trade within the EU, dashing hopes of a special City deal. However according to new reports Germany has suggested allowing trade on the condition that the UK continues paying into the EU budget even after the transition period.

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Ms Morgan, together with the former Lib Dem deputy prime minister and Labour foreign secretary, called on MPs to stand up to “the hardest of Brexits”.

“Over the coming months, MPs will have the chance to table amendments to Bills – and vote for those amendments – which can prevent the country from suffering the long-term damage that a hard Brexit will cause.

“The pro-Brexit press will angrily protest, but what is the role of MPs if not to improve and protect the lives of their constituents?”

The article, in The Mail on Sunday, comes ahead of the joint appearance on Monday, when the trio will flesh out their proposed path of resistance in parliament.

It does not name-and-shame any Conservatives, but comes just days after Boris Johnson broke ranks to condemn Theresa May’s preferred customs plan as “crazy”.

Meanwhile, Jacob Rees-Mogg leads a 60-strong group of Tory MPs that has suggested it will try to topple the prime minister if she compromises too far.

Ms Morgan has spoken out as Ms May was forced to issue a “trust me” plea to the public, as she fights off mounting criticism that her warring cabinet threatens to derail Brexit.

The prime minister dismissed bitter rows among her top ministers about how Britain should leave the European Union as simply “noisy debate and technical discussions”.

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