• EU Withdrawal Bill will return to House of Commons on 12 June – following 15 defeats in the House of Lords, the Withdrawal Bill will now be debated by MPs who will vote for the legislation on a single day. Due to the tight numbers, the Tories will require the support of the Democratic Unionist Party for a majority. This has attracted significant criticism, with critics believing that the government pushing through the legislation in one day is an “absolute disgrace” (BBC News).
  • UK hints at staying in European VAT area – a letter from Mel Stride (financial secretary to the Treasury), has stated that “the government aims to keep VAT processes after EU exit as close as possible to what they are now” and Britain will take an “active role” in shaping new EU value added tax regulations for the 2020s, potentially suggesting the Treasury is planning for the UK to remain inside the EU’s VAT area following Brexit. If Britain were to stay in the EU VAT area, it will cross on of Theresa May’s negotiating red lines, however if Britain leaves the regime it will need border infrastructure to impose VAT at borders (Financial Times).
  • Brexit policies ready for June EU summit – Sajid Javid has stated that Britain will have a good set of Brexit policy proposals ready for the meeting with EU leaders this month and is confident that Britain will agree a withdrawal deal with the EU, dismissing claims of a no deal scenario. A white paper policy document is due to be published in advance on the summit on June 28/29. However, Theresa May is struggling to find a proposal on post-Brexit customs arrangements, with divisions in the cabinet and EU officials criticising draft options under discussion (Reuters).