Northern Ireland protocol – live: EU warns of retaliation if UK overrides Brexit deal

The Northern Ireland Business Brexit Working Group – an umbrella body of 14 leading groups – has responded to Liz Truss’s statement by condemning the idea of unilateral action on post-Brexit arrangements as “sub-optimal”.

The group said it would “study” the UK government proposal, but stated: “While we are frustrated with the ongoing failure to resolve the outstanding issues, it is our shared view that anything other than a negotiated outcome is sub-optimal.”

Calling for a negotiated compromise, the group added: “It is incumbent on the EU and UK to recommence discussions without delay. It will require movement and compromise on both sides to secure the workable and lasting solutions we all need to see.”

Ms Truss earlier said the government would introduce legislation to override the Northern Ireland protocol of the Brexit deal. Britain wants to change elements covering the movement of goods, goods regulation, VAT, subsidy control and governance.

Boris Johnson has said he does not share the economic pessimism expressed by Bank of England governor, who admitted to feeling “helpless” amid the worsening cost of living crisis (Adam Forrest writes).

Andrew Bailey warned on Monday of an “apocalyptic” spike in food prices, predicted unemployment will rise, and conceded that the Bank is largely “helpless” to address inflation.

Asked on Tuesday if too he felt “helpless” over living costs, the prime minister said: “No – I think that this country has got a fantastic future.”

Mr Johnson told reporters: “What we’ve got to do is fix some short-term global inflation issues caused by coming out of the pandemic – particularly on supply chains, particularly on the cost of energy. But we have the fixes.”

Seven in ten people (72 per cent) say the government is handling the economy badly, including more than half of Conservative voters (54 per cent), a YouGov poll has found.

The economy has been a growing concern in Britain since November and became the foremost issue in the public mind in January as the cost of living crisis set in.

The number of British adults who think the government is handling the economy badly is the highest in Boris Johnson’s time as prime minister and is 32 per cent higher than this time last year.

YouGov surveyed 1,810 UK adults from 14-16 May.

Power sharing in Northern Ireland will not be restored until an EU “power grab” to “crush” business in Northern Ireland is resolved, ministers have been warned.

DUP MP Ian Paisley (North Antrim) told the Commons about the paperwork faced by Marks & Spencer chairman and former Tory MP Archie Norman to do business on the island of Ireland.

Mr Paisley said: “His business in the Republic of Ireland to export goods has to fill in 700 pages.

“It has to do that within an eight-hour period, it has to do some of that wording in Latin to satisfy the European community, and it also has to do it in a certain type font or else it will not be allowed.

“It costs him an additional £30 million. He has said this morning on the radio that the EU has told him they would like the same procedures for his businesses in Northern Ireland.”

He added: “This is power grab. People talk about trade war. This is a trade war to crush business in Northern Ireland. Will the foreign secretary ensure that whenever she is speaking to the Cabinet, that they know clearly that if they keep the protocol, power sharing isn’t coming back?”

Foreign secretary Liz Truss said the government’s proposed new Bill would “deal with the bureaucracy that we are seeing”, adding the government was “open” to talks over a “negotiated settlement” in the meantime.

Ireland’s foreign affairs minister Simon Coveney has said he “deeply regrets” the British government’s decision to introduce legislation that will disapply elements of the Northern Ireland Protocol.

Mr Coveney said such unilateral action “is damaging to trust and will serve only to make it more challenging to find solutions to the genuine concerns that people in Northern Ireland have about how the protocol is being implemented”.

He said the unilateral action from the British government is “contrary” to the wishes of people and businesses in Northern Ireland, but welcomed foreign secretary Liz Truss’s preference for a negotiated solution with the EU.

The government has been asked to “take action” to make sure that European judges do not have “adverse influence” over trade in Northern Ireland.

Conservative MP Mark Francois (Rayleigh and Wickford) said Lord Trimble, who helped bring about the Good Friday Agreement, had raised the issue of the European Court of Justice’s (ECJ) role as an arbiter for disputes over the Northern Ireland Protocol in a newspaper article.

He said: “As an architect of it with John Hume nearly a quarter of a century ago, he also raised the issue of the adverse influence of the European Court of Justice in Northern Ireland.

“Can the Foreign Secretary assure the House that under her sixth heading, which I think she called governance, she will take action on that issue as well please?”

Liz Truss replied: “I can assure him that we will take action to ensure the arbitration mechanism is in place for Northern Ireland as it is in the Trade and Co-operation Agreement, rather than having the ECJ as the final arbiter which it is as present.”

The solution the government is putting forward “will actually save costs”, foreign secretary Liz Truss has said.

Ms Truss’ comments came as Labour MP for Putney Fleur Anderson asked her in the Commons: “So much for getting Brexit done, so much for oven ready. What is the cost of the proposed actions? The Treasury has drawn up economic impact assessments for this course of action. When will the government release them for the House?

Ms Truss replied: “Well, the solution that we are putting forward will actually save costs by reducing the bureaucracy that traders are currently facing shipping goods into Northern Ireland.

“So, our overall proposal benefits traders into Northern Ireland. It benefits the people of Northern Ireland. It doesn’t make the EU any worse off and it helps protect the single market.”

Boris Johnson has been speaking about the government’s plan to override parts of the protocol to reporters during a visit to see the new Elizabeth line at Paddington Station.

Asked about the possibility of a trade war with the EU, the prime minister said: “I don’t think that is likely … We need to address the problems with the protocol. What that actually involves is getting rid of some relatively minor barriers to trade.”

He added: “And I think there are good, common sense, pragmatic solutions. We need to work with our EU friends to achieve that.”

The PM said the “higher duty” of the UK government was to the Good Friday Agreement and the peace process, adding: “Of necessity, we can make some changes, I think, to the protocol …

“It makes it very clear on the face of the text that you should ensure east-west trade, and the integrity of the UK internal market.”

He added: “Let’s fix it. We don’t want to nix it – we want to fix it. And we’ll work with our EU partners to do it.”

The European Commission has warned it will retaliate and use “all measures at its disposal” if the UK presses ahead with a threatened bill to override the Northern Ireland Protocol.

Vice-president Maros Sefcovic said he had “significant concerns” about the plan and that “unilateral actions contradicting an international agreement are not acceptable”.

Our political correspondent Ashley Cowburn has the full story:

Prime minister Boris Johnson said: “I think that it’s important that all political parties who believe in the government of Northern Ireland get back round the table and get Stormont up and running.

“Northern Ireland has got amazing opportunity now. Parts of the Northern Irish economy are going really, really well.

“What they need is leadership. They need their politicians to focus on the things that matter to the people of Northern Ireland.”