Philip Hammond says EU has already slapped down max fac customs solution

Chancellor Philip Hammond has said the EU has already objected to the customs solution proposed by Leavers including Boris Johnson.

The so-called "maximum facilitation" model, or max fac, gained traction this week, as City A.M. revealed that ministers working on the problem were poised to get behind the idea.

But it looks like the EU may have already poured cold water on the proposal. Speaking to Business Insider, Hammond said max fac was unlikely to be accepted by the EU.

He said that the EU has already objected "in principle" to the option.

"The EU negotiators have an objection in principle to the so-called max fac option. And that is that it requires an exemption for small traders across the Irish border, which they object to," Hammond told BI.

This latest setback will add further tension to the long-running debate over how to deal with the Irish border after Brexit.

One alternative model, a customs partnership which is not supported by many Leavers, could be more feasible according to the Chancellor.

He said that the EU only has "practical concerns" which could be addressed to find a solution.

Read more: Boris Johnson says Britain must come 'fully out' of the customs union

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