Britain would remain in a temporary customs union with the EU, avoiding a hard Irish border, as part of a new deal being thrashed out between London and Brussels, the Sunday Times reported yesterday.
Senior sources told the newspaper that British Prime Minister Theresa May has secured concessions from Brussels, with the EU agreeing to write an “all-UK” customs union into the divorce deal.
This would avoid the EU’s “backstop” solution that would have treated Northern Ireland differently from the rest of Britain.
There would be an “exit clause” from the customs union in a bid to convince Brexiteers that it is not a permanent move as May looks to secure enough votes to get the deal through parliament, it added.
Downing Street refused to confirm the report, telling reporters that it was “all speculation,” but that negotiations were “going well.”
Under the reported deal, the EU accepts that regulatory checks on goods can be carried out in factories and shops rather than at the border, the Sunday Times said.
That keeps open the possibility of Britain securing a free-trade deal similar to the one signed between Canada and the EU in 2016.
May’s Cabinet is due to hold talks today on the plan, with a potential EU summit penciled in for the end of this month if they agree enough progress has been made.
Parliament would then vote on the deal next month.
Separately, more than 70 business leaders, including former Marks and Spencer chairman Alex Chesterman, penned a letter to the Sunday Times calling for a second Brexit referendum.
They warned Britain was “facing either a blindfold or a destructive hard Brexit,” which would depress investment.
“Given that neither was on the ballot in 2016, we believe the ultimate choice should be handed back to the public with a People’s Vote,” the letter added.
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