Whatever they say on Gibraltar, May’s government faces humiliation over Brexit

On Brexit negotiations, Theresa May has persistently said she will not reveal her hand as it will damage Britain’s position. She has then revealed her hand on all the main issues. We are willing to allow immigration after all, and we are willing to pay budgetary contributions.

These two positions are the main promises that the Brexiteers made in the referendum campaign and they have both been reneged upon already. We will not save £350m which can be given to the NHS, while David Davis has reassured the eastern European nations that immigration can continue. British business demanded reassurance on this point and they certainly got it.   

Meanwhile, the Labour Party has mostly been highlighting the concern that workers’ rights will be reduced. Although hugely important, in my view it is not relevant to negotiations. The EU are not demanding that the British keep existing employment law after leaving.

Labour must refocus their opposition by highlighting that immigration and EU payments will continue. It is a sign of the government’s desperate negotiating position, and their making business a priority over people. The result of which has meant the Tories have reneged. Brexit voters appear unaware of this because the point has not yet been made sufficiently forcefully.

Meanwhile much of Europe is insisting that airlines must be based in the EU if they want to have landing and take-off slots between EU destinations. For British Airways owner IAG, which also owns Iberia Airlines and Veuling, a low cost airline, this means they may have to move their head office to the EU and pay taxes in another country.

Far from delivering a sense of national pride, this would mean that the British flag carrier, BA, would fly the union jack over Dublin rather than London. This would be an astonishing outcome for a Brexit policy promoted on the basis of national pride.

Gibraltar is another issue which hits at the heart of patriotic pride for many Leave voters. Personally I don’t agree that Gibraltar should be important to us. They wave the Union Jack while helping British companies avoid tax. To me a patriot is someone who pays their tax rather than avoids it.

Meanwhile it seems the EU is beginning to throw its weight around on the international stage. They are opening free trade talks with Australia and New Zealand just at the same time as Brexit. For Australians this is like moving into a house with a divorcing couple. If they are forced to choose, they will are unlikely to side with the one who is about to become homeless.

The Brexit government here thinks that people around the world really like Britain even though our nation colonised them in the past. This rose-tinted view causes them to be surprised by the needs of other countries. Theresa May’s India mission resulted in prime minister Modi demanding guarantees on Indian migration. To May, this was a big surprise.

It’s also foolish to think former colonies can replace the EU. Australia has a population of 23m compared to the EU’s 500m. And companies tend to trade with neighbours, in the same way that you and I tend to holiday in countries that are close by.

The Brexit government of May has already been deeply humbled and this will likely develop into humiliation as time goes on. They massively overpromised and Labour should insist they deliver – or admit their hubris.