Theresa May has been accused of resurrecting Project Fear after her Business Secretary warned that thousands of jobs will be at risk unless the Government adopts a Customs partnership with the EU.
Eurosceptics Cabinet ministers thought they had killed off the plans after a meeting of the Brexit wars Cabinet last week amid concerns it would lead to a climbdown over Brexit and see Britain staying in the Customs Union.
However Mrs May has insisted that the partnership is still on the table, with the issue set to be decided at another meeting of the Brexit war cabinet on Thursday.
Greg Clark, the Business Secretary, disclosed that he spoke to Toyota last week and as he raised concerns that 3,500 jobs could be at risk if the company decides to locate a new plant in Europe rather than the UK.
He denied crying in Cabinet as he made the case for a customs partnership with the EU last week, but said that he feels “very strongly” about the issue and potential jobs that will be at risk.
He told the Andrew Marr show on BBC One: “I have never been so clear eyed in my life about this. I feel very strongly. It is absolutely right we should be leaving the Customs Union, but what we replace it with is of huge importance.
“I was talking this week to the global president of Toyota motors. They are making a big decision as to where the next motor plant should be in Europe. We have a very successful one in North Wales, but there are choices as to whether that should be located on the continent.
Between that plant and the plant in Derbyshire there are 3,500 people employed. The nature of that business is that over 50 per cent of the parts come from out of the country. They come through every hour of the day and night. It’s just in time manufacturing, it is highly efficient.
We have always said we will have a customs agreement that has the minimum of frictions. That is crucial. It [a customs partnership] helps firms. It means you can import [parts] without any checks at the border, without paperwork.
He was supported by Amber Rudd, the former Home Secretary, who said on Twitter: Greg Clark [is] quite right, making the case clearly and yes, passionately, for a Brexit that protects existing jobs and future investment.
However Jacob Rees Mogg, leader of a 60-strong group of eurosceptic Tory MPs, accused Mr Clark of using the tactics of “Project Fear” with scare stories.
He told Peston on Sunday on ITV1: The issue with the customs partnership is, to be effective, it would have to keep us in the single market.
A Eurosceptic Cabinet source said: It’s project fear all over again, it’s not going to work. These tired old arguments were all trotted out during the referendum and the electorate wholeheartedly rejected them.
It’s time we stopped fighting the battles of the past and went for a true Brexit. No 10 is silencing Brexiteers while unsubtly putting forward the Business Secretary to make the case for staying in the Customs partnership.
David Cameron and the Remain campaign were accused of using Project Fear during the EU referendum, with warnings that up to 500,000 people would lose their jobs because of the economic damage of Brexit.