Brexiteers furious over concessions in May’s ‘yellow paper’

Theresa May could suffer a crucial Brexit bill defeat as early as Monday after Eurosceptics reacted angrily to her white paper.

British Brexit Secretary Dominic Raab speaking in the House of Commons in London on Thursday. Picture: AFP

British Prime Minister Theresa May could suffer the defeat of a crucial Brexit bill as early as Monday after Eurosceptics reacted angrily to her white paper.

Relations between Conservative MPs who support a hard Brexit and No 10 Downing Street worsened after the publication on Thursday of the 98-page document, which spelled out a series of detailed compromises.

In what Brexiteers argue is a breach of red lines, the white paper said disputes over trade should be “referred to the European Court of Justice for interpretation” in certain circumstances, and that businesses that provide services would be able to “move their talented people” across the Channel.

Former Tory leader Iain Duncan Smith told the House of Commons: “I voted to leave, not to half-leave.” Steve Baker, who quit as a Brexit minister on Monday, was offering on Twitter to sign copies of the white paper “over which I resigned”.

Conservative MPs who support a hard Brexit told the government they would vote against the third reading of the bill on Monday, presenting a huge problem for the Prime Minister. Jacob Rees-Mogg and the European Research Group of hard Brexiteers had indicated they would launch only a symbolic rebellion against Mrs May on Monday. Yesterday it emerged they plan to go further.

“This white paper has not needed age to turn yellow. There are very few signs of the Prime Minister’s famous red lines. It is a pale imitation of the paper prepared by David Davis, a bad deal for Britain. It is not be something I would vote for, nor is it what the British people voted for,” Mr Rees-Mogg said.

Downing Street and Brexiteers are now engaged in a high stakes standoff over whether either will back down as whips assess the strength of the rebellion. One government source admitted that the situation was serious. Another said they were not sure how the government would proceed. One Remain-supporting Tory MP said: “They have to understand their reckless tactics are pushing us closer to an election and a Jeremy Corbyn government.”

The Taxation (Cross-border Trade) Bill, known simply as the Trade Bill, gives the government powers to create Customs arrangements after Brexit. Mrs May has three options: delay it and face accusations that she no longer commands a majority in the Commons; fight the Brexiteers and risk defeat that could put her future in jeopardy; or suffer ­humiliation by abandoning her Chequers compromise plan.

Mrs May finally published her long-awaited white paper on Thursday night, warning that ­diverging from EU rules would collapse the Brexit deal. Under plans for a “common rule book” — under which the UK would agree to stick to EU rules on goods after Brexit — there would be harsh penalties should the British government later decide to diverge.

The document effectively codifies the soft Brexit agreed at Chequers, which led to the resignations of Brexit secretary Mr Davis and foreign secretary Boris Johnson and caused fury among backbench Brexiteer MPs. It sets out plans for an association agreement with the EU. Some of the plan will only deepen the misgivings of backbenchers — and Brussels is expected to demand further concessions.

Other key features include:

● The UK will pay to continue participating in EU agencies covering areas such as chemicals, aviation safety and medicines.

● A “phased in” Customs ­arrangement — in which the UK would collect the EU’s tariffs on goods from elsewhere in the world in a small minority of cases — since it would not be ready before the end of the transitional period.

● A new, looser policy on services, where the UK would set its own rules but accept that the UK and EU would not have the same level of access to each other’s markets as now.

● The ability of EU migrants to work in the UK without a visa on a temporary basis of as yet undefined length under a labour mobility scheme.

The Times