Nearly a quarter of Labour MPs rebelled last night to support backbench demands for Britain to stay in the customs union.
Former shadow cabinet ministers including Chuka Umunna and Rachel Reeves supported an amendment by Chris Leslie which aimed to retain the option of staying in the customs group rather than “ditching the most efficient tariff-free, frictionless, free-trade area in the world… for something inferior”.
In total 64 Labour MPs voted for the amendment despite orders from the leadership to abstain. The whips had been expecting the revolt, which followed similar internal rows over the single market earlier this year.
The weight of Tory numbers ensured Leslie’s clause was defeated by 320 to 114. After the vote the former shadow chancellor and Open Britain supporter vowed to battle on.
“The fight for permanent customs union membership isn’t finished,” he said.
“Every day it gets clearer that crashing out of the customs union will cause massive economic damage to our economy, creating mountains of new red tape for businesses and cancelling existing trade deals with over 60 countries around the world.
“The idea that imaginary new trade deals could compensate for the damage is a total fantasy. They would take years to negotiate and could mean a lowering of our high food standards. People therefore have the right to ask whether the costs of leaving the customs union are worth it.”
Corbyn is now expected to come under pressure from trade union chiefs to shift Labour’s Brexit position again.
In August the party leader and Keir Starmer, the shadow Brexit secretary, came out in favour of continued membership of the single market until after EU negotiations have concluded.
At the time Manuel Cortes, general secretary of the TSSA, wrote on LabourList: “Staying in the single market and the customs union is looking like the best option from which to defend our jobs and our livelihoods. But sacrificing our voice on the Brexit alter to do so is just plain daft.”
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