Brexit: May denies cabinet were kept in dark about 'backstop' proposals after clash with David Davis

Prime minister to have formal meetings with leaders of all G7 countries - except US President Donald Trump

Deputy Political Editor in Quebec

Thursday 07 June 2018 23:45 BST

Ms May refused to give a ‘cast iron guarantee' that Britain would finally break free from EU trade rules in 2022 (EPA)

Theresa May has denied keeping pro-Brexit cabinet ministers in the dark in the bitter row over her “backstop” proposal to rescue the withdrawal talks.

The contents of the document – which prompted David Davis’ dramatic threat to resign – had been discussed “with ministers over the last few days”, the prime minister insisted.

She had “always been clear that the backstop was time limited”, the cause of the clash with the Brexit Secretary who was furious that no end date was included originally.

After tortuous negotiations, the four-page document eventually sent to Brussels said the government “expects” alignment with the EU customs union to end in December 2021.

However, it gave no commitment and set out no alternative solution to avoid a hard border in Ireland – the reason why the EU has insisted on the protection after transition is supposed to end a year earlier.

There are allegations that a draft with no end date was shared with senior Remain-supporting ministers before it was shown to leading Brexiteers including Liam Fox, the trade secretary.

But, asked if she had “bypassed Brexiteers”, the prime minister replied: “No, we have been discussing this with ministers over the last few days - the nature of this document and what we were saying.”

Speaking en route to the G7 summit in Canada, Ms May refused to give a "cast iron guarantee” that Britain would finally break free from EU trade rules in 2022, but said she was confident it would.

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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“We have said that we will actually be able to have that end state customs arrangement in place at the very latest by the end of December 2021.”

And she added: “We will be working to ensure that it is in earlier than that.”

She went further than before in arguing it would not be needed at all – despite HMRC chiefs admitting her own “customs partnership” solution, which would see the UK collect EU tariffs, will not be ready before 2023.

The alternative technology-based “max fac” plan appears to have been torpedoed altogether after HMRC put the annual bill at more than £20bn.

But, the prime minister insisted, the backstop would only be required at all if “for technical reasons” permanent customs rules were not “in place by the first of January 2021”.

Her “focus” remained on securing “best relationship” for long-term trade, although the EU has insisted those talks will not properly begin until after Brexit day, next March.

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