May's new Brexit customs proposal incites scepticism on both sides

Downing Street plans to reveal a new model for a post-Brexit customs relationship by the end of this week, though early indications have produced scepticism from both European Union officials and Eurosceptic MPs.

After speaking to ministers this week, the Prime Minister is set to publish a white paper setting out "in more detail what strong partnership the United Kingdom wants to see with the European Union in the future".

Although details of the plan have not yet been made public, ministers are set to discuss them at the end of the week at the PM's Chequers private residence to try and agree a collective negotiating position.

While the production of a new customs proposal is an effort to bridge divides in the party, some Tory backbenchers such as Jacob Rees-Mogg are sceptical of May’s plans. Writing in the Daily Telegraph, the MP said that he and a few others would reject a deal that did not ensure a clean break with the EU.

According to the BBC, the government’s proposal could involve some form of alignment with the EU regarding goods but a looser relationship for services.

Senior EU officials who have access to the draft have said that it is ‘unrealistic’ and the UK has no chance of changing the EU’s founding principles, said the Guardian on Monday.

An official from the UK government source said on the EU comments: “Rather than getting hot under the collar over unfounded media speculation, we’d suggest a better approach would be to wait for the white paper to be published before responding to it."

Downing Street's chief Brexit negotiator told ministers that there is "no chance" of striking a bespoke trade deal with the EU, the Times reported, with government sources suggesting the message was that the only options were a Norway-style deal in which Britain remains in the single market but has to accept EU rules, or a simple free-trade agreement that is strongly opposed by business.

Business secretary Greg Clark suggested to Sky News that one solution could to ease the economic pain of the divorce would be to extend the post-Brexit transition period.