Brexit: Theresa May has failed to solve Irish border controversy and 'time is running out', MPs warn

Brexit committee calls for plan B if EU continues to reject Chequers proposals – urging the prime minister to keep the single market on the table

Theresa May has failed to set out a solution to prevent a hard border in Ireland after Brexit and “time is now running out”, a highly critical report by MPs warns today.

The Exiting the European Union Committee stamps on suggestions that an agreement with the EU is close, stating the UK has still not put forward a workable proposal to avoid border posts and checks.

It also argues a plan B will be needed if the EU continues to reject the Chequers proposals – urging the prime minister to keep single market and customs union membership on the table.

And the report dismisses the growing push by pro-Brexit Tories for a “Canada type” deal, pointing out that would not keep open the Irish border, or meet Ms May’s pledge to deliver “friction-free trade”.

In recent weeks, the Brexit mood music has improved, with the odds shortening on a withdrawal agreement being reached at a special leaders’ summit in November.

However, privately No 10 accepts the two sides are still a long way from a deal on the Irish border – while drafting of a blueprint for a future trading relationship has barely begun.

Now the Brexit committee’s report says the government must “set out clearly how it intends to eliminate regulatory checks at the [Irish] border”, if a deal is to be reached.

In June, the prime minister accepted the need for a “backstop” – to avoid a hard border, in the absence of other solutions – but said it should be time-limited and apply across the UK as a whole.

Michel Barnier, the EU’s Brexit negotiator, has accepted this “in principle”, but demanded further clarity, particularly over regulatory checks to protect the integrity of the single market.

Hilary Benn, the committee’s Labour chairman said: “The EU has now said it has no objection to a UK-wide backstop ‘in principle’ and this is to be welcomed.

“But the government has not yet set out how it will maintain an open border without imposing customs and regulatory checks. It must now do so.”

Mr Benn also raised the alarm over the long-term trading relationship with the EU, which is to be set out in a non-binding “political declaration” alongside the withdrawal agreement.

The EU has rejected the Chequers proposal for the UK to collect customs tariffs on its behalf and to adopt the “common rulebook” in goods but not services.

Mr Benn said: “Time is also running out to agree the kind of detailed framework for the future relationship that parliament will need to see.

“If the Chequers plan is not acceptable as a basis for that, then the government will need to find a different approach urgently.

“Alternatives are either an EU-UK customs union and alignment on relevant EU rules, or EEA membership and a customs union, but neither are government policy.”

The “Norway option”, effectively staying in the single market through membership of the European Economic Area (EEA), has growing support on the Tory benches, but has been ruled out by Ms May.

This week, the prime minister again insisted the only alternative to Chequers was leaving with no deal – despite her own chancellor warning that it could set Britain back 10 years.

The committee – although not a minority of arch-Brexiteer members, including Jacob Rees-Mogg – agreed with Philip Hammond, warning that crashing out of the EU would be “chaotic and damaging”.