Desperate Theresa May faces a fresh Brexit threat today as Remainer Tories try to force her to keep the UK in the customs union.
The Prime Minister is meeting her Cabinet as she tries to stave off another existential challenge to her strategy for leaving the EU in the Commons.
Mrs May suffered humiliation overnight when she was forced to swallow Brexiteer amendments to the Customs Bill that threaten to fatally damage her controversial Chequers plans.
But having made the concessions, pro-EU Tories were so enraged that they staged an ambush with Labour that came within a whisker of defeating the government.
The Prime Minister is meeting her Cabinet as she tries to stave off another existential challenge to her strategy for leaving the EU in the Commons
Treasury Secretary Liz Truss was among the ministers arriving for Cabinet this morning
Foreign Secretary Jeremy Hunt and Health Secretary Matt Hancock were also at the meeting
Defence minister Guto Bebb became the latest casualty of the Conservative civil war as he quit to join the protests against Eurosceptic influence.
With panic spreading over Mrs May’s prospects of survival, the government has proposed parliament breaks up early for the summer in a desperate attempt to quell the chaos.
But even if that is approved, Mrs May must still navigate a potentially stormy session on the Trade Bill tonight.
Tory rebels have tabled amendments designed to force the UK to stay in the customs union unless Mrs May can secure a free trade deal with the EU.
Opinion is split on whether defeat would be catastrophic to Mrs May’s plans – but it would certainly be politically damaging.
Meanwhile, Conservatives have been stepped up their campaign by floating the idea of a second referendum, as the Brexit ‘endgame’ starts to take shape.
International Trade Secretary Liam Fox dismissed the idea of a national vote today, asking if there would need to be ‘best of three’.
‘What if we have a referendum and it goes the other way? Do we have best of three?’
He also tried to play down the Tory turmoil, telling BBC Radio 4’s Today programme that there was no problem with accepting the Brexiteer amendments.
‘The wording of the amendment yesterday was very close to the wording in the Government’s White Paper,’ he said.
‘It looked in fact as a bit of a cut and paste from the White Paper.’
Dr Fox said he wanted to see a ‘people’s Brexit’, adding: ‘We can’t please everybody. ‘We have to have a compromise position that enables the country to get an agreement with the European Union.
‘Here in Britain there is far too much negative, self-doubting pessimism in this process.’
Dr Fox also insisted there was no issue with bringing forward recess as the government would still be working.
Justine Greening (pictured right in London yesterday) has called for a fresh Brexit referendum. Guto Bebb quit as defence minister last night
‘Well, of course, you have to draw the distinction between parliament and government, because government doesn’t stop over the recess.’
The PM’s climbdown on the Customs Bill came despite warnings the measure from Jacob Rees-Mogg’s European Research Group undermined the draft Brexit deal agreed at Chequers earlier this month.
The amendment insists that the UK can only collect taxes on behalf of a foreign state if they agree to collect duties for Britain – something the EU is unlikely to agree.
The concession increases the sense that the walls are closing on Mrs May and the chances of a ‘no deal’ Brexit are rising – as she now has even less room to manoeuvre in negotiations with the EU.
Her former Brexit Secretary David Davis made his first intervention since his sensational resignation last night, speaking up for the rebel amendments Mrs May has been forced to adopt.
Both Eurosceptics and Remainers have been dismissing her Chequers plan as ‘dead’ as she faces massive pressure from each Tory faction to change tack.