Britain could have to PAY for temporary customs union after Brexit as Tories refuse to rule it out
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Britain's Brexit bill may just have got even bigger after a top Tory refused to rule out paying for his own customs plan.
David Davis will unveil plans for a temporary customs union today to keep "the freest and most frictionless possible trade" between the UK and the EU after March 2019.
But the Brexit Secretary refused to say whether Britain would have to pay for it.
Asked by ITV he claimed: "No, I don't think..." before trailing off and immediately rowing back.
He said: "What happens in that sort of interim period you will have to leave me to negotiate, I'm afraid, how we do it, but the aim is to bring to an end these huge £10billion-a-year payments, bring that to an end now.
"We are still haggling with them over what we may owe them in the short term but we are going to bring the overall thing to an end."
(Image: REUTERS)
Then on the BBC he refused to say at all, replying: "I’m not going to do the negotiation on air. That's just not the way this is done. What I'm saying is this proposal is to the benefit of the European Union."
Pressed again whether Britain would pay he said: "Wait and see."
It raises fears even larger sums will be tacked on to an already looming Brexit 'divorce bill' as Britain tries to keep EU benefits it already has.
In a round of interviews Mr Davis admitted there will not be a final figure for the total bill by November despite the clock ticking on Brexit.
Yet he boldly claimed negotiations were going "incredibly well", even though he also admitted there would be "point-scoring" from the EU.
He appeared to accuse his Cabinet colleagues of "pitching for the moon" before they reached a compromise over an interim deal this weekend, which he called a "victory for common sense".
He admitted there were Cabinet splits, saying: "Of course there are different views on elements of the deal because departments have their own specific interest.
(Image: REUTERS)
"Treasury is obviously concerned about the City; Business Energy and Industrial Strategy is concerned about things like research and manufacturing. They have their different fields; Liam (Fox) wants to do his trade deals, my job is to make sure that we do all of those in a practical way that works and also in a way that is negotiable and we can get that outcome that we want so we are not pitching for the moon.
"Of course there are discussions, of course there are interests, but we all want the best outcome for Britain."
Mr Davis claimed his changeover period would last "most likely something like two years - probably a bit shorter".
He said he expected to be able to negotiate for trade deals during the transition period - but admitted he wouldn't be able to implement them until Brexit is fully complete.
But he insisted the EU is now less hostile to Britain than it was last year.
"There was a terror early on that we would be the first of many countries breaking off," he said. "After the victory of Macron in France that terror has reduced. They’re no longer quite so afraid. So the punishment battalion side is now reducing."
Mr Davis also revealed a clearer statement on the key issue of the European Court of Justice will be published by the government next week.
He refused to rule out the ECJ overseeing the transition period - something Britain opposes. He said "I don't think so" and "let's see how that plays out."
(Image: AFP)
Josh Hardie, CBI deputy director-general, said: "Business wants to see as frictionless a customs system as possible, with a strong emphasis on digital systems that make it easier to trade.
"But to secure frictionless trade, negotiations on regulation, tariff and non-tariff barriers will have to take place. All efforts should be made to deliver a single-step transition, so that businesses don't have to adapt twice."
Adam Marshall, director general of the British Chambers of Commerce, said: "Business is clear that a smooth transition to new arrangements is needed, and multiple adjustment costs must be avoided.
"In the long term, we should aim to avoid imports and exports being subjected to two sets of customs checks, and to ensuring the smoothest possible future trade relationship between the UK and EU."
Labour former shadow chancellor Chris Leslie, a leading supporter of the Open Britain campaign group, said: "It looks like the new unified position in the Cabinet is to return the Government to the territory of wanting to have their cake and eat it."
Tom Brake, the Liberal Democrats Brexit spokesman, said the Government's "extreme Brexit will end up leaving Britain poorer".