Robert Hancock

Theresa May’s Brexit plan won’t work

The referendum result was initially recognised by the British Government as a decision to take back control of money, laws, borders and taxes, which had to be given effect to. It accepted this meant leaving the EU’s single market and customs union. The three page statement issued at Chequers last Friday on behalf of the Cabinet, euphemistically described as a ‘substantial evolution’, signals the retreat from this policy. The Government now favours a one-sided agreement, similar to that between the EU and Ukraine, which is contrary to the national interest.

Instead of taking back control of laws, the Government now proposes ‘to commit by treaty to ongoing harmonisation with EU rules on goods’, which represent the majority of British exports. This will make trade agreements based on mutual recognition of standards very difficult. In substance, the Government proposes staying in the single market for goods. Industries of the future, such as robotics, computing, and autonomous vehicles, will remain under EU control.

Wary of inevitable accusations of ‘social dumping’, the UK promises to accept EU state aid law and not to diminish ‘regulatory standards’ on the environment, social policy, and consumer protection. This is a mistake. If voters want to keep today’s standards, it will elect politicians to maintain them. To forbid Parliament, for example, from making it easier to build infrastructure or housing by altering EU environmental law is not taking back control. Future generations should not be denied their legitimate right to experiment. As Parliament is sovereign, it would, as now, have the theoretical ability to reject existing and new EU laws, but there would be ‘consequences’ if it did so. These will no doubt be such that it is never sensible to reject any individual EU law, as under the European Economic Area agreement.

The Government also suggests a ‘Facilitated Customs Arrangement’, a rebranding of its ‘New Customs Partnership’, under which the UK would collect the EU’s common external tariff for the EU at the UK border.

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