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Housing minister shoots down idea floated by Maroš Šefčovič designed to help reset UK-EU discussions
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Keir Starmer in Downing Street on Wednesday evening. Photograph: Alberto Pizzoli/PA
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UK will not accept EU offer to join pan-European customs union ‘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 customs union with the EU.
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.
If you want to contact me, please post a message below the line or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.
If you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn. The Guardian has given up posting from its official accounts on X but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.
I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.
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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 union, 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.)
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 union ‘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 customs union with the EU.
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.
If you want to contact me, please post a message below the line or message me on social media. I can’t read all the messages BTL, but if you put “Andrew” in a message aimed at me, I am more likely to see it because I search for posts containing that word.
If you want to flag something up urgently, it is best to use social media. You can reach me on Bluesky at @andrewsparrowgdn. The Guardian has given up posting from its official accounts on X but individual Guardian journalists are there, I still have my account, and if you message me there at @AndrewSparrow, I will see it and respond if necessary.
I find it very helpful when readers point out mistakes, even minor typos. No error is too small to correct. And I find your questions very interesting too. I can’t promise to reply to them all, but I will try to reply to as many as I can, either BTL or sometimes in the blog.
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