Business

Government suffers worse-than-expected defeat over key Brexit bill

The government has lost the first test of strength in the Lords, with a bigger margin of peers approving an amendment to the EU Withdrawal Bill.

Those who backed Lord Kerr's amendment outnumbered those who backed the government by a majority of 123, forcing the motion over whether the UK should have the option to remain within a customs union back to the Commons.

Labour's shadow Brexit secretary Keir Starmer, who watched the debate from the sidelines, welcomed the result, saying it was a "huge step forward". He tweeted: "Careful work paying off. Now to hold it in the Commons."

The two-hour debate was concluded with Brexit minister Lord Callanan saying the government would not reflect further on something it has already ruled out.

He was supported by many, including Lord Forsyth who warned his colleagues "we are an unelected house" and that Kerr's amendment risked putting "peers against the people". He described the amendment as "an exercise by Remainers in this house, who are the majority, who refuse to accept the will of the people".

But peers across the house made the case for remaining within a customs union.

Crossbencher Lord Bilimoria said: "This whole talk about going global, my lords – what a load of nonsense. We have always been global trading nation, an open economy, an open market,respected for it which is why we are one of the biggest recipients of inward investment in the world."

Conservative Chris Patten agreed. “I dont think blithering on about Global Britain or pretending we haven't been Global Britain for years, or repeating the Road to Mandalay whenever one is travelling, is going to make a difference to trading opportunities," he said. "We won't do better than the customs union.”

A DexEU spokesperson said: “We are disappointed that Parliament has voted for this amendment.

“The fundamental purpose of this bill is to prepare our statute book for exit day, it is not about the terms of our exit.

"This amendment does not commit the UK to remaining in a customs union with the EU, it requires us to make a statement in Parliament explaining the steps we've taken.

"Our policy on this subject is very clear. We are leaving the customs union and will establish a new and ambitious customs arrangement with the EU while forging new trade relationships with our partners around the world."

[contf]
[contfnew]

CityAM

[contfnewc]
[contfnewc]

Related Articles

Business

Pressed by COVID-19 and low oil prices, Nigeria slips into recession

africanews– Nigeria, Africa’s biggest economy, entered recession for the second time in...

Business

EU Reeling From Yellow Vest Protests. What Happens if There Is a Debt Crisis?

There is a lot of talk about which economic bubble will burst...

Business

EU Reeling From Yellow Vest Protests. What Happens if There Is a Debt Crisis?

There is a lot of talk about which economic bubble will burst...

Business

Till Trump do they part: Top tech firms cut ties with Huawei following US trade blacklisting

Last week, US President Donald Trump signed an executive order aimed at...