Proposal to create new UK-EU customs union supported by MPs

Proposals to create a new UK-EU customs union have been supported in the Commons, following a vote by MPs.

The Customs Union (Duty to Negotiate) Bill, tabled by the Liberal Democrats’ Europe spokesman Al Pinkerton on Tuesday, ended in a surprise tie of 100 votes to 100, giving the deputy speaker the casting vote.

Deputy Speaker Caroline Noakes said: “In accordance with precedent, I will cast the casting vote ‘aye’ to allow further debate.”

The majority of Labour MPs abstained from the vote, except for three who voted against and 13 who voted in favour.

Mr Pinkerton brought forward the proposed Bill through a 10-minute rule motion.

Bills tabled in this manner are unlikely to become law without Government support, but they do allow MPs to make a case for new legislation in the Commons.

Mr Pinkerton told the Commons on Tuesday: “Up and down the country, businesses know it, the public feel it and it’s time that this House find the courage to lift our whispered voices and admit it – Brexit has been an abject economic failure.

“It’s choked business investment, shattered economic resilience, strangled trade, shrunk the economy and left every single one of us poorer.

“The economic benefits of Brexit were only ever an illusory mirage.”

Mr Pinkerton said that far from becoming a “buccaneering global Britain”, the country is “weaker and more isolated” than at any point in recent history, with recent trade deals adding little economic growth.

He added: “The most dishonest campaign in modern British political history promised that Brexit would save £350 million a week.

“Instead, Brexit is now costing this country £250 million every single day. That is why we have the highest tax burden in 70 years. That is why families face sky-high bills. That is why we remain trapped in a cost-of-living crisis.”

Conservative MP Simon Hoare, who supported staying in the EU during the referendum, objected to the 10-minute rule motion.

Mr Hoare argued the UK had not been made weaker as a result of Brexit, pointing to European leaders in Downing Street on Monday to discuss the war in Ukraine.

He said: “As somebody who voted to remain part of the European Union in the referendum, and campaigned strongly to do so, I accepted the result of the referendum.”

He added: “(This motion) would fundamentally undermine the welcome and energetic efforts of His Majesty’s Government to continue to grow that iterative process of a relationship with the European Union without being part of it. That endeavour deserves the united support of all members.

“We all want to see an increase in trade with the European Union and we all want to see the uplifting benefit that that has to all of our citizens.

“But the proposal before us in this Bill is not the way to achieve it.”

He also said that businesses need certainty, which this would fail to create, and the EU has “neither interest in it nor appetite for it”.

Lib Dem deputy leader Daisy Cooper had earlier clashed with Chancellor Rachel Reeves over the UK’s ties with the European Union.

Ms Cooper said the Brexit deal had “wrapped up British businesses in red tape and has blown a hole in the public finances” as she asked whether Ms Reeves would back the Bill.

Ms Reeves said: “Since we came into office last year, we’ve reset our relationship with the EU, which is why last May we agreed with the EU an expansive set of changes to our relationship – including on food and farming, on electricity and energy trading, and also on youth mobility and Erasmus.”

She also said the Government was “taking opportunities to trade more with fast-growing economies around the world, including India and also by getting the first and the best trade deal that anybody has secured with the US”.

Prime Minister Sir Keir Starmer was forced to clarify his position on rejoining the customs union last week after his deputy David Lammy praised how membership had boosted growth in other countries.

Asked on the News Agents podcast if he would like to see the UK in a customs union, Mr Lammy had said: “That is not currently our policy.

“That’s not currently where we are.

“But you can see countries like Turkey with a customs union seemingly benefiting and seeing growth in their economy, and, again, that’s self-evident.”

Sir Keir later said Labour would be sticking to its manifesto, which pledged to strengthen ties with Brussels without returning to the customs union, single market or freedom of movement.