Rishi Sunak has offered to sacrifice some of Britain’s Brexit freedoms to try to restore a devolved government in Northern Ireland.
The Prime Minister has promised to introduce a requirement that all new laws be scrutinized to ensure they do not create additional barriers to trade in the Irish Sea.
Downing Street hopes the pledge will convince the Democratic Unionist Party (DUP) to end its two-year boycott of Stormont which has paralyzed Northern Irish politics.
But the proposal angered Tory MPs, who warned that such a policy would make it almost impossible for Great Britain to leave the EU rules.
Eurosceptic sources said the plan would mean any laws designed to take advantage of Brexit freedoms risk being blocked by Whitehall officials.
All legislation would have to be accompanied by a statement from the Minister confirming that it did not have a “significant adverse effect” on internal UK trade.
The proposed system would be similar to that used to screen new bills for compliance with the European Convention on Human Rights.
Northern Ireland effectively remained in the European single market when the rest of the UK left the Union, to prevent the need for a hard border with the Republic.
As a result, goods traveling from Great Britain to Ulster must undergo customs checks to ensure they are not destined for EU member Ireland.
If Britain separates from EU rules, the number of checks required on British goods crossing the Brexit border into Northern Ireland could increase, which critics say will harm trade.
It raises the prospect that new laws that would mean Britain’s departure from Brussels could be blocked.
Unionists are angry at the current arrangement, which they say has damaged Northern Ireland’s economy and made its people “second-class” UK citizens.
The DUP walked out of the Belfast assembly in February 2022 in protest at the Irish Sea Border and refused to return until the checks were over.
Mr Sunak renegotiated the original Brexit deal last year and replaced it with the Windsor Framework, which reduced – but did not eliminate – customs red tape.
Unionists are pushing the Prime Minister to go further, but doing so would anger the EU and put the wider Brexit trade deal at risk.
His latest offer would give the DUP an effective guarantee that the UK will not pass future laws that would create more barriers to trade between Great Britain and Northern Ireland.
But Tory MPs warned that it would come at the cost of binding Britain to European standards and paying money to take advantage of Brexit freedoms.
Sir Jacob Rees-Mogg, the former business secretary, said: “This means we will not be at odds at all, and we will have Theresa May’s Checkers deal at all.
“I voted against the Windsor Framework because it is part of the UK as part of the EU. This mechanism would put some of the EU’s hegemony back in front of us.”
Sir Iain Duncan Smith, the former Tory leader, said the plan was a “serious problem”.
He added: “The Windsor framework is the back door to the European Union to keep the UK and stops us from diversity. It should be replaced.”
Sir Iain is leading calls for the UK to relax its rules on growing gene-edited crops, which would greatly benefit UK farmers.
But the practice is banned by the EU, meaning Northern Ireland could not implement it or import any such product from Great Britain.
A eurosceptic source said: “It will be a powerful tool in the hands of civil servants, creating a chilling effect when any diversity is seen as impossible.”
Sir Jeffrey Donaldson, the DUP leader, has been locked in talks with the Government for months over a deal to return to power sharing in Stormont.
Ministers offered legislation guaranteeing Northern Ireland’s place in the United Kingdom, a new East-West council on internal trade links and £3.3 billion of funding.
There had been hope that he would bring back the deal at a party meeting last week but some senior DUP members opposed the motion.
He told the Deputies on Wednesday that he had been threatened for trying to find a solution regarding the Irish Sea border but promised not to be intimidated.
The Government has come under fire for “failing” to take advantage of Brexit by quietly extending the rule of EU law to the British economy.
That criticism happened at the same time when the Department of Business left an announcement that it is expanding the use of European safety marks.
‘Listen to business’
Kevin Hollinrake, the business minister, said the block’s ‘CE’ stamp, which indicates goods made to EU standards, will now be accepted for more goods.
The move means UK electronics manufacturers, such as vacuum cleaners, heat pumps and fridges, will be encouraged to follow the Brussels rules.
In a written statement, Mr Hollinrake said he had “listened to business” both in the UK and on the Continent who wanted to follow EU standards.
But eurosceptic MPs fear the latest escalation will effectively end any hope of Britain taking advantage of its Brexit freedoms by leaving the EU.
David Jones, vice-chairman of the European Research Group, said ministers should “encourage and accelerate the development of British standards and not continue to conform to EU regulation”.
He added: “The UK is pursuing a global trading position and EU standards are becoming increasingly irrelevant. Sticking to the CE mark is extremely short-sighted.”
Sir Bill Cash, a leading Tory eurosceptic, warned the Government that “the opportunity was squandering” free from Brussels red tape.
In a letter to Kemi Badenoch, the Business Secretary, he said there was “little hard evidence” that ministers plan to pursue Brexit freedoms.
Asked about Mr Sunak’s offer, a UK Government spokesman said: “We don’t comment on speculation.
“We believe there is a strong basis for restoring power sharing, and we remain optimistic that this can be settled soon.”