Liam Fox, the International Trade Secretary, is expected to deliver a speech later today claiming that remaining in a customs union after Brexit would be a “complete sell-out” of Britain’s national interest.
Dr Fox’s warning comes a day after Jeremy Corbyn unveiled a shift in his party’s policy, confirming Labour will back a “new and comprehensive” UK-EU customs union to ensure tariff-free trade after Brexit.
But Dr Fox’s speech was immediately overshadowed on Tuesday as his call for leaving the customs union – in favour of striking free trade deals – was described by a former top civil servant in his department as like “giving up a three-course meal for the promise of a packet of crisps”.
Sir Martin Donnelly, who left his role as permanent secretary at the Department of International Trade last year, said 60 per cent of UK trade is either with the EU or the countries it has trade agreements with, and that any divergence from Brussels rules would deal a blow to British services which would not be compensated for through deals with nations like the US.