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UK politics: ‘It’s not a customs union’: No 10 leaves door open to joining pan-Europe scheme – as it happened

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Downing Street says EU’s suggestion of UK joining agreement would not cross its ‘red lines’ for closer ties

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Thu 23 Jan 2025 10.56 ESTFirst published on Thu 23 Jan 2025 04.28 EST
Key events
An aerial view of shipping containers at the Port of Felixstowe in Suffolk.
An aerial view of shipping containers at the Port of Felixstowe in Suffolk. Photograph: Joe Giddens/PA
An aerial view of shipping containers at the Port of Felixstowe in Suffolk. Photograph: Joe Giddens/PA

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RSPB claims Labour going back on pre-election promise to protect nature with plan to restrict judicial review

Here is Downing Street news release on the government’s plans to limit the extent to which judicial review can be used to hold up infrastructure projects. The plans will cover England and Wales.

The RSPB, which describes itself as the UK’s largest nature conversation charity, has accused Labour of going back on its pre-election promises to protect nature. Beccy Speight, the RSPB chief executive, said:

The PM claims to ‘clear a path’ for building, but this move runs the risk of bulldozing through our chances for a future where nature, people, and the economy all thrive. We know people want bold action on the climate and nature crises, which was Labour’s election platform, and this rhetoric has them veering wildly off course.

We all know that nature underpins economic growth - that is why government and the environment sector has been actively working together, to try and unlock better outcomes for both planning and nature - yet this rhetoric flies in the face of that collaborative spirit.

But the British Property Federation has welcomed the plans. Melanie Leech, its chief executive, said:

If we want to grow the economy and fund vital public services, then we have to better balance environmental and community interests with the benefits of development, and do so in a clear and timely way. Reducing the scope for vexatious and unmerited legal challenges, whilst retaining a right to appeal, is a very positive step in achieving this.

Khan confirms he would consider legal challenge against Heathrow expansion if it goes ahead

Aletha Adu
Aletha Adu

Sadiq Khan, the mayor of London, has told the London assembly he’ll consider joining a legal challenge if the government supports the proposed third runway at Heathrow airport.

As well as confirming that he remained opposed to Heathrow expansion (see 10.57am), Khan was asked by London assembly member and deputy leader of the Green party Zack Polaski whether there was any money available in the budget for a legal challenge against the proposals. Khan said: “No money has been set aside based on speculation.”

But he also said that, if the speculation were to “become a reality”, he would consider the case for going to court.

Lib Dem leader says Labour's rejection of EU offer to join Europe-wide customs scheme 'act of economic negligence'

Ed Davey, the Lib Dem leader, has said the government’s decision to reject the EU’s suggestion that Britain could join a Europe-wide customs scheme (see 9.28am and 10.10am) is “an act of economic negligence”.

In a statement he said:

It is alarming that the government is happy to negotiate with China but won’t even look at a better trading arrangement with our closest neighbours in Europe. This is an act of economic negligence.

If the government thinks it will get growth back in the economy by borrowing Boris Johnson’s playbook on European negotiations it is going to end up being sorely disappointed.

It is time for a proper UK-EU customs arrangement so we can strengthen our negotiations with Donald Trump, cut the red tape on our businesses and grow the economy.

The number of hospital beds taken up by people who are fit to be discharged is at its highest level this winter, while the vomiting bug norovirus is also gripping NHS wards, PA Media reports. PA says:

New data from NHS England shows an average of 13,710 hospital beds per day were filled last week by patients who were medically fit to leave – up from 13,585 the previous week and the highest number so far this winter.

On average, 41% of patients ready to leave hospital last week were discharged each day, down slightly week-on-week from 42%.

Delayed discharges occur when social care, support or accommodation is not yet in place yet for patients to be transferred into the community.

Norovirus cases in hospitals surged in the last week, although levels are still below last month.

London mayor Sadiq Khan confirms he remains opposed to Heathrow expansion

Sadiq Khan, the Labour mayor of London, has confirmed that he is still opposed to building a third runway at Heathrow.

In a speech next week Rachel Reeves, the chancellor, is expected to confirm plans to go ahead with a third runway at Heathrow, as well as endorsing expansion at Gatwick and Luton.

Khan has said in the past that, if the government were to press ahead with Heathrow expansion, he would go to court to try to block it. Speaking to the London assembly this morning, he said his views on the proposal “haven’t changed” and that he remains opposed.

What Londoners know, and the government knows, is the aviation sector is important for growth, jobs and prosperity, but we face a climate crisis and a climate emergency.

The Climate Change Committee, well respected, set out quite clearly its recommendations, which is the only time expansion of aviation should be considered, I’m paraphrasing, is if it abides with our climate change commitments and so forth.

The three big concerns that would need to be addressed if, in the hypothetical case, the speculation was to become a reality, is could a new runway be built that abides with carbon targets, concerns around noise pollution, and concerns around air pollution?

Should that speculation become a reality, we’ll of course consider the merits of that case.

But I’m quite clear, my views on the expansion of Heathrow by a new runway haven’t changed.

Sadiq Khan taking questions from the London assembly Photograph: London assembly
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Thomas-Symonds declines to rule out veterinary deal with EU involving dynamic alignment

In his BBC interview yesterday Maroš Šefčovič, the vice president of the European commission dealing with post-Brexit policy, said that he hoped the UK and the EU would be able to agree a new veterinary agreement.

The two sides are due to review the post-Brexit trade deal this year, and the British government has said a veterinary agreement is a priority. This would reduce the regulatory barriers affecting trade in food and agricultural goods.

Referring to this option, Šefčovič said “we would have to have the same rules and we have to upgrade them at the same time, we call it dynamic alignment”.

In the Commons Alex Burghart, the shadow Cabinet Office minister, said moving towards dynamic alignment with the EU would be “a very significant step”. He went on:

Will [the minister] be clear with the house – is dynamic alignment on the table?”

It comes to something when Mr Šefčovič is a better guide to what is going on than the British government. Yet if the government is committed to dynamic alignment now, he will know that this is a significant step, because it potentially brings the European court back into having jurisdiction over the United Kingdom.

Will he rule out the ECJ [European court of justice] having jurisdiction over the UK in any regard in future?

Nick Thomas-Symonds, the Cabinet Office minister, said the European Court of Justice already had an involvement in the Windsor framework.

He also said that Labour set out its red lines in its manifesto, where the party gave examples of what it wanted to renegotiate.

The Labour manifesto says:

There will be no return to the single market, the customs union, or freedom of movement.

Instead, Labour will work to improve the UK’s trade and investment relationship with the EU, by tearing down unnecessary barriers to trade. We will seek to negotiate a veterinary agreement to prevent unnecessary border checks and help tackle the cost of food; will help our touring artists; and secure a mutual recognition agreement for professional qualifications to help open up markets for UK service exporters.

Alex Burghart in the Commons today. Photograph: HoC
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EU Brexit chief says he's 'surprised' by Labour's 'spin' on youth mobility scheme because 'it's not freedom of movement'

In his interview with the BBC, Maroš Šefčovič, the vice president of the European commission who is in charge of the commission’s post-Brexit relations with the UK, criticised the way Labour government has discussed the proposal for a youth mobility scheme.

Ministers have repeatedly ruled out joining a youth mobility scheme, implying that this would be tantamount to accepting EU free movement rules – which voters were widely seen to have rejected when they voted for Brexit in 2016.

In his interview Šefčovič said a youth mobility scheme would “build bridges for the future for the European Union and the UK” and that he and his colleagues were “a little bit surprised what kind of spin it got in the UK”.

He explained:

It is not freedom of movement. We have been very clear what we’ve been proposing.

Government has no plans to join Europe-wide customs scheme, says minister, adding it won't provide 'running commentary'

Nick Thomas-Symonds, the Cabinet Office minister in charge of post-Brexit relations with the EU, is in the Commons taking questions with his departmental colleagues, and he has just been asked about the EU offer for the UK to join the Pan-Euro-Mediterranean Convention (PEM). (See 9.28am.)

The Conservative MP John Cooper said this plan would turn Britain “once again into rule takers and not rule makers”. He also urged the government to rule out dynamic alignment with the EU in terms of regulation.

In response Thomas-Symonds said:

We, of course, welcome the positive, constructive tone from Commissioner Šefčovič.

We’re always looking for ways to reduce barriers of trade, but within our manifesto red lines, because we take a pragmatic view as to where the national interest lies.

But we don’t currently have any plans to join PEM and we are not going to provide a running commentary on every comment that’s made.

That is much the same as what Matthew Pennycook said about this earlier, but the reference to not providing a “running commentary” also suggests that the government is not permanently ruling out this option.

(Governments often try to avoid questions on difficult policy matters by saying they won’t provide a “running commentary”. No 10 tried this earlier this week when asked about Donald Trump pulling out of the Paris climate agreement. But generally this line never holds, because when a question becomes very pressing, dodging it starts to look impossible.)

Nick Thomas Symonds in the Commons today. Photograph: HoC
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Tories claim local goverment reorganisation will hold up attempts to speed up planning applications

The Conservatives have claimed that the government’s local government reorganisation will hold up attempts to speed up planning applications.

In a response to the plans announced today to limit the extend to which judicial review can be used to hold up developments, Kevin Hollinrake, the shadow levelling up secretary, said the Tories approved of streamling the planning system, but did not believe Labour would do it properly. He said:

Labour ministers have … sat on their hands on implementing the measures introduced by the Conservatives to cut bureaucracy and provide greater certainty to local residents and developers and abolishing and replacing hundreds of local councils and asking all their employees, including planning officers, to reapply for their jobs is hardly a recipe for accelerating decision-making.

The Conservative party is under new leadership and we will come forward with real plans, not empty announcements, to get Britain building.

UK will not accept EU offer to join pan-European customs scheme ‘at present time’, minister says

Good morning. The government is obsessed with finding any levers it can that might generate growth. At Davos yesterday Rachel Reeves, the chancellor, was asked if growth was even more important than promoting net zero, and she replied: “Well, if [growth is] the number one mission, it’s obviously the most important thing.” Today the government is announcing potentially significant plans that could limit the scope of judicial review applications to hold back growth. Pippa Crerar, Kiran Stacey and Sandra Laville have the details here.

Economists argue that an obvious move to promote growth would be to have closer trade links with the EU. But the government has ruled out rejoining the single market or the custom union (let alone rejoining the EU proper – which is still largely a taboo proposal in most parts of UK politics). And today a minister has ruled out an EU proposal for the UK to join, not the customs union, but a Europe-wide customs scheme that in some respects would be similar.

The idea was floated by Maroš Šefčovič, the vice president of the European commission who is in charge of the commission’s post-Brexit relations with the UK. He is at Davos and, in an interview with the BBC’s economics editor Faisal Islam, he said that a “pan-European [customs] area is something we could consider” as part of “reset” discussions between the UK and EU.

In his write-up, Islam reports:

Šefčovič referred to the idea of the UK joining the Pan-Euro-Mediterranean Convention (PEM).

These are common rules that allow parts, ingredients and materials for manufacturing supply chains to be sourced from across dozens of countries in Europe and North Africa to be used in tariff-free trade.

The Conservatives did not pursue PEM as part of its post-Brexit deal but some firms said it would help the UK rejoin complex supply chains that have been hit by customs barriers.

Speaking at the World Economic Forum in Davos, Mr Sefcovic said the idea has not been “precisely formulated” by London yet and the “ball is in the UK’s court”.

Islam said in his story that the government has “begun consultations with business over the benefits of the PEM plan that could help cut red tape and improve trade”.

But Matthew Pennycook, the housing minister, was the government spokesperson on the airwaves this morning and he shot the idea down. He was giving interviews about the plans to reform judicial review rules. But, on the Today programme, when asked about the Šefčovič proposal, he replied:

We’re not seeking to participate in that particular arrangement.

I think in general the government’s been very clear … we do want a closer relationship with our European partners, both in trading terms, but also, importantly … in terms of security and defense cooperation, where we need to work far more closely. So absolutely, yes, we do want a closer relationship.

As for this particular arrangement, though, we’re not seeking to participate in it at the present time.

That sounded like a fairly clear denial – although perhaps Pennycook’s inclusion of the words “at the present time” when he made his second reference to the UK not participating may signal that the door is not closed for good.

Here is the agenda for the day.

9.30am: Pat McFadden, the Cabinet Office minister, takes questions in the Commons.

10am: Sadiq Khan, the London mayor, takes questions at the London assembly.

10am: Sajid Javid, the former health secretary, gives evidence to the Covid inquiry on vaccines.

After 10.30am: Lucy Powell, the leader of the Commons, makes a statement on next week’s Commons business.

11.30am: Downing Street holds a lobby briefing.

Noon: John Swinney, Scotland’s first minister, takes questions at Holyrood.

And Rachel Reeves, the chancellor, is at Davos, where she doing various speaking and media events. Graeme Wearden is there and is covering it all on the business live blog – Davos edition.

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UPDATE: I have changed the heading on this post, and the wording at the end of the final sentence in the first paragraph, to reflect the fact that No 10 is saying it is wrong to describe the PEM as a custom union. See 1.36pm.

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