The upper chamber of Britain’s parliament on Tuesday inflicted a symbolic defeat on the government over Brexit legislation that critics claim trashes the UK’s reputation as a defender of the rule of law.

The government’s internal market bill is designed to regulate trade among the country’s four constituent nations – England, Scotland, Wales and Northern Ireland after Brexit. But it unilaterally rewrites the divorce treaty Britain struck with the European Union last year, sparking legal action from the 27-nation bloc. The bill has already passed the more powerful House of Commons but in the House of Lords, peers including Anglican archbishops voted by a majority of 226 to express their “regret” over its treaty-breaching provisions. While the vote did not alter the bill’s language, it sets the stage for detailed scrutiny by the lords in the coming weeks. Many want to strip out those elements, triggering a legislative tussle with the Commons before the bill can become law.

Michael Howard, a former leader of the ruling Conservatives and prominent Brexiteer, was among the dissident peers who voted for the motion against the government of Prime Minister Boris Johnson.”I want the United Kingdom to be an independent and sovereign state,” Howard said during the debate. “But I want it to be an independent sovereign state that holds its head up high in the world, that keeps its word, that upholds the rule of law, that honours its treaty obligations.”

The government argues the law is needed to prevent the UK’s internal market fragmenting once the country is free of EU rules in 2021, in particular regarding Northern Ireland. But the territory, which has a troubled history, is meant to enjoy a special post-Brexit status in consultation with Brussels because it shares a border with EU member Ireland, and the bloc has initiated legal action over the bill.

Tuesday’s vote came with Britain and the EU also locked in a standoff over protracted talks about their future trading relationship from next year, and the threat of a “no deal” separation is looming larger. EU chief negotiator Michel Barnier again urged Britain to use the little time that remains to clinch a trade deal, but London is still refusing to restart talks until Brussels promises to make concessions. 

Meanwhile British Prime Minister Boris Johnson held a call with around 250 business leaders urging them to prepare adequately for the transition period’s end on December 31.

“It is vital that everybody on this call takes seriously the need to get ready, because whatever happens…change is going to happen,” he told them, according to his office.

However, the BBC’s business editor said those on the line describe it as a “terrible call” and “disrespectful to (the) concerns of business”. Johnson reportedly told the leaders the coronavirus crisis had created “too much apathy in business” to get ready for life outside the EU in what was described as a lecture by one participant.