Government committee warns of food price rises

Food prices

The cabinet sub-committee has now been divided into two smaller groups to thrash out the pros and cons of the schemes but time is ticking away for May to get agreement on how to move forward, with the European Union and United Kingdom both committed to getting a Brexit-deal drawn up by October.

A Downing Street spokesman said: "I think we have been very clear on our position on leaving the customs union and the importance of delivering on that".

His comments on a proposed customs partnership had led to suggestions Mr Johnson could resign or even be sacked from Government.

Each working group will be mostly opposed to the option they're considering.

Is the Prime Minister about to back down in the crucial cabinet argument over a post-Brexit customs deal? "Retailers urgently need the Government to focus in on developing workable plans for customs that allow goods to continue to move uninterrupted across EU-UK borders after the transition period ends".

Foreign Secretary Boris Johnson this week deepened the Cabinet row on the post-Brexit customs arrangements by branding the proposal for a customs partnership with the European Union, which would see the collection of Brussels-decided tariffs at the United Kingdom border, as "crazy".

"This report is right to highlight the significance of tariff-free, frictionless trade and industry concerns about the impact of a no deal". But some senior figures, including Mr Clark, have continued to push it.

More news: Congress will vote on whether or not to bring back net neutrality

Labour leader Jeremy Corbyn also went on the offensive, saying neither of Mrs May's customs options were workable.

The Conservatives are up one point to 43 per cent, while Labour remains on 38 per cent, the YouGov analysis found. The Lib Dems were up 2 per cent at 9 per cent.

He will now be asked to work with Mr Davis to address his concerns that even streamlined customs checks could cost jobs in sectors such as the auto industry, where parts criss-cross the Channel multiple times.

Many are dubious that such technology exists that will prevent long checks at Britain's ports, and there are fears that just a few minutes' delay will see queues of lorries building up for miles in the run-up to docks.

This is the option believed to be favoured by the Prime Minister, Chancellor Philip Hammond and other Remain-supporting Cabinet ministers, but Brexiteers fear it would scupper the UK's ability to have an independent trade policy.

One Whitehall source said: 'Obviously she is ultimately the boss and will have the final say.

The House of Lords voted against her plans to leave the European Union's single market after Brexit and voted to strip out the fixed timing for Britain to leave the EU in March next year. However, Labour's shadow trade secretary, Barry Gardiner, said this weekend that post-Brexit EEA membership would leave the United Kingdom a "rule-taker", adding: "We would have to be bound by the what's called the acquis, the regulations - but we would have no say in making those regulations".

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