Will Cameron go to war with Conservative Christians?

The repeal of Sunday trading laws and the introduction of gay marriage could trigger a backlash.

When George Osborne announced the suspension of Sunday trading laws for the Olympics, the government assured the public and retailers that it was a temporary measure. Yet, as was inevitable, ministers, including Osborne and Eric Pickles, are now pushing for them to be permanently abandoned. Downing Street has insisted that they won't be (describing the suspension as "a specific thing for the Olympics"), without quite ruling out the move altogether.

Cameron is right to tread carefully. It was over this issue that Margaret Thatcher suffered her first and only Commons defeat when 72 Conservative MPs voted against the complete repeal of the laws in 1986. The introduction of an equivalent bill today would likely spark a similar rebellion. Tory MP Mark Pritchard, for instance, has said:

I think all of us deserve rest and that includes shop workers.

As somebody who has worked in a shop on a Sunday, and not every Conservative MP has done that, I know that there is a lot of pressure on workers to turn up, there’s a question of whether people are overlooked for promotion.

The abandonment of Sunday trading laws would hurt small retailers the most and remove an important constraint on market rule. Unsurprisingly, then, the public are opposed to the measure by 52% to 36%. For obvious reasons, the abolition of Sunday trading laws would also antagonise churchgoing voters. Cameron's decision to press ahead with plans to introduce gay marriage has already alienated conservative Christians and is currently the top reason for Tory members resigning from the party. The Daily Mail's Andrew Pierce reported that thousands "ripped up their membership cards and refused to renew their subscriptions." He added:

The alarm bells sounded in the Tory HQ, which in January launched a national appeal to try to persuade waverers to return to the fold. The appeal was a dismal failure.

ConservativeHome's Paul Goodman has previously dubbed the coalition "the most anti-Christian Government in British history" Whether this is true or not (and the answer likely depends on which kind of Christian you are referring to), is less important than the fact that some Christians are now asking this question. Were Cameron making progress among those groups - black and ethnic-minority voters, public-sector workers, Scottish voters - that refused to support him in 2010, he could afford to risk alienating thousands of Conservative christians. But he is not. In today's Mail, George Pitcher, Rowan Williams's former public affairs secretary, writes of "Cameron's contempt for religion in general and the Church of England in particular." If this view gains currency on the right, the Prime Minister will be in trouble.

David Cameron reads during the service of thanksgiving to mark the Queen's Diamond Jubilee. Photograph: Getty Images.

George Eaton is political editor of the New Statesman.

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What is the EU customs union and will Brexit make us leave?

International trade secretary Liam Fox's job makes more sense if we leave the customs union. 

Brexiteers and Remoaners alike have spent the winter months talking of leaving the "customs union", and how this should be weighed up against the benefits of controlling immigration. But what does it actually mean, and how is it different from the EU single market?

Imagine a medieval town, with a busy marketplace where traders are buying and selling wares. Now imagine that the town is also protected by a city wall, with guards ready to slap charges on any outside traders who want to come in. That's how the customs union works.  

In essence, a customs union is an agreement between countries not to impose tariffs on imports from within the club, and at the same time impose common tariffs on goods coming in from outsiders. In other words, the countries decide to trade collectively with each other, and bargain collectively with everyone else. 

The EU isn't the only customs union, or even the first in Europe. In the 19th century, German-speaking states organised the Zollverein, or German Customs Union, which in turn paved the way for the unification of Germany. Other customs unions today include the Eurasian Economic Union of central Asian states and Russia. The EU also has a customs union with Turkey.

What is special about the EU customs union is the level of co-operation, with member states sharing commercial policies, and the size. So how would leaving it affect the UK post-Brexit?

The EU customs union in practice

The EU, acting on behalf of the UK and other member states, has negotiated trade deals with countries around the world which take years to complete. The EU is still mired in talks to try to pull off the controversial Transatlantic Trade and Investment Partnership (TTIP) with the US, and a similar EU-Japan trade deal. These two deals alone would cover a third of all EU trade.

The point of these deals is to make it easier for the EU's exporters to sell abroad, keep imports relatively cheap and at the same time protect the member states' own businesses and consumers as much as possible. 

The rules of the customs union require member states to let the EU negotiate on their behalf, rather than trying to cut their own deals. In theory, if the UK walks away from the customs union, we walk away from all these trade deals, but we also get a chance to strike our own. 

What are the UK's options?

The UK could perhaps come to an agreement with the EU where it continues to remain inside the customs union. But some analysts believe that door has already shut. 

One of Theresa May’s first acts as Prime Minister was to appoint Liam Fox, the Brexiteer, as the secretary of state for international trade. Why would she appoint him, so the logic goes, if there were no international trade deals to talk about? And Fox can only do this if the UK is outside the customs union. 

(Conversely, former Lib Dem leader Nick Clegg argues May will realise the customs union is too valuable and Fox will be gone within two years).

Fox has himself said the UK should leave the customs union but later seemed to backtrack, saying it is "important to have continuity in trade".

If the UK does leave the customs union, it will have the freedom to negotiate, but will it fare better or worse than the EU bloc?

On the one hand, the UK, as a single voice, can make speedy decisions, whereas the EU has a lengthy consultative process (the Belgian region of Wallonia recently blocked the entire EU-Canada trade deal). Incoming US President Donald Trump has already said he will try to come to a deal quickly

On the other, the UK economy is far smaller, and trade negotiators may discover they have far less leverage acting alone. 

Unintended consequences

There is also the question of the UK’s membership of the World Trade Organisation, which is currently governed by its membership of the customs union. According to the Institute for Government: “Many countries will want to be clear about the UK’s membership of the WTO before they open negotiations.”

And then there is the question of policing trade outside of the customs union. For example, if it was significantly cheaper to import goods from China into Ireland, a customs union member, than Northern Ireland, a smuggling network might emerge.

 

Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.