Amendment that 'could have kept UK in Customs Union' defeated
Last night, former Shadow Cabinet member Ian Murray tabled an amendment to the Taxation (Cross Border Trade) Bill, which would have stopped tax on UK imports from the EU. According to WTO rules, this would have meant the UK would still be part of the Customs Union. However, Labour’s Shadow International Trade Secretary Barry Gardiner disagreed, saying this would only have stopped the UK from imposing tariffs on all traded goods between the UK and EU. Labour whips ordered MPs to vote down the amendment. It was defeated, with 311 votes against to 76 for.

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Deep Labour divisions over Brexit were exposed in the form of a bizarre three way split last night, after party whips forced MPs to vote with the Conservatives against an amendment that would keep the UK in the customs union.

Former Shadow Cabinet member Ian Murray tabled a surprise amendment to the Taxation (Cross Border Trade) Bill, which would have prevented taxes being charged on imports to the UK after it leaves the EU, a move that, owing to WTO rules, would effectively have kept the UK in the customs union.

Labour whips ordered MPs to vote against the amendment, which was defeated by 311 votes to 76, and saw the unusual spectacle of Shadow Chancellor John McDonnell voting with the government.

Mr Murray, having tabled the amendment, voted against his own party whip. Other Labour MPs abstained almost by accident, having been granted permission to leave the Commons.



Prominent Labour backbencher Wes Streeting said this morning: “I would have voted for Ian's amendments, but we were told that we could go home because no important votes (!) and I had a work commitment off the estate. Not happy.”

Ian Murray, who brought the amendment, said: “It is disappointing that this amendment was defeated but the fight for Customs Union membership is far from over.

“The Government’s reckless, ideological decision to pull us out of the Customs Union will damage trade with the EU, our biggest economic partner, and risk chaos at our ports with lorries backing up motorways as they face reams of new red tape. And it will make a hard border between Northern Ireland and the Republic of Ireland inevitable.

“Customs Union membership is simply the best economic option for our country. Leaving it for fantasy new trade deals which cannot replicate the trade we do with Europe is no solution.”

After the vote took place, Labour’s Shadow International Trade Secretary Barry Gardiner said the amendment was impractical and would not have kept the UK in the customs union. “Amendment would have stopped Treasury from applying any tariffs or quotas to goods in or out of EU after Brexit. It did NOT keep us in Customs Union as EU could still impose tariffs on us!” he wrote on Twitter.

Conservative former minister Anna Soubry, and prominent Remainer said: "It can't be right that the overwhelming majority of honourable and right honourable members in this place agree that we should be in the customs union and the single market.

"And the only reason that that isn't even on the table anymore, and it's an uncomfortable truth, is because I fear my party is in hock to 30 to 35 hard, ideologically driven Brexiteers."