Jeremy Corbyn has sparked fury among his MPs by ruling out backing a Brexit Bill amendment to keep the UK in the EU single market.
The Labour leader has faced growing calls from his backbenches to back the Lords amendment to keep the UK in the European Economic Area (EEA) – the so-called Norway option.
But he tonight said that he will table an alternative change calling for the UK to negotiate a new deal which keeps ‘full access’ to the market.
It is understood that Mr Corbyn wants a deal which would mean Britain does not have to keep free movement rules and state aid stipulations which limit state aid.
But Remain-backing Labour politicians hit out at the move – saying Mr Corbyn wrongly thinks he can ‘have his cake and eat it’ if he thinks the EU will give Britain such a generous deal.
Labour backbencher and leading Remainer Chuka Umunna tore into the decision in a series of Twitter posts warning that the ‘overwhelming majority’ of Labour supporters want EEA membership.
Theresa May faces a huge battle to overturn the 15 Brexit Bill wrecking amendments when it returns to the Commons next week.
Jeremy Corbyn (pictured today at the GMB conference in Brighton) has decided that the Labour Party will not back a Brexit Bill wrecking amendment to keep the UK in the EU single market
Instead, Labour is calling for Britain to get a deal which retains ‘full access’ to the EU’s single market.
Labour said it is tabling this amendment as ‘a more credible and effective approach to the Lords’ amendment, which seeks to bind the UK to signing the EEA – in short adopting the ‘Norway Model’.’
But Mr Umunna said: ‘The only way of realising the objectives set out in the amendment, short of EU membership, is through the UK being part of the European Economic Area, as a minimum.
‘Like the Tory Government and hard-Brexiters this amendment seeks ‘access’ to the EU’s Single Market but this is nowhere near enough. What the overwhelming majority of Labour members and supporters want is so much more.
‘To be part of the framework of protections for workers, consumers and the environment which being part of the European Economic Area uniquely offers to non-EU members.
‘All the way through the passage of this Bill, the only amendments which have commanded support on both sides of the House and passed are cross party backbench ones.
‘So, if we are serious about ‘protecting full access to the internal market of the EU’ and ensuring ‘no new impediments to trade’, logic dictates Labour MPs should be whipped to support the cross party EEA amendment sent to us by the House of Lords.’
Labour MEP Catherine Stihler, who is a member of the anti-Brexit group Best for Britain, said: ‘The only way to secure the exact same benefits of the Single Market is for the UK to remain a member of the Single Market.
‘We can’t have our cake and eat it, and it’s time for the party to be honest about this.
‘The Norwegian model is not ideal, but nor is any deal where we’re not at the top table.
‘The best deal, for jobs and the economy, is being part of the EU. That’s why the Labour Party should support a people’s vote on the final Brexit deal with an option to remain.’
The Labour frontbench is also tabling amendments that would demand ministers make sure Britain adopts common minimum standards, rights and protections, shared UK-EU institutions and regulations, and no new barriers to trade.
Labour says the proposal would protect jobs and avoid a hard border in Northern Ireland.
Keir Starmer, Labour’s Shadow Brexit Secretary, said: ‘Labour will only accept a Brexit deal that delivers the benefits of the Single Market and protects jobs and living standards.
‘Unlike the Tories, Labour will not sacrifice jobs and the economy in the pursuit of a reckless and extreme interpretation of the referendum result.
‘Existing Single Market agreements that the EU has negotiated with third countries, including Norway, are bespoke deals negotiated with the EU to serve the best interests of those countries.
Labour backbencher and leading Remainer Chuka Umunna (pictured) tore into the decision in a series of Twitter posts warning that the ‘overwhelming majority’ of Labour supporters want EEA membership
‘We need to learn from them and negotiate our own more ambitious agreement, which serves our economic interests and which prevents a hard border in Northern Ireland.
‘Two years on from the referendum it is clear that the Government has no plan for how it will protect jobs and the economy, and guarantee no hard border in Northern Ireland.
‘Labour’s amendment, along with a commitment to negotiate a new comprehensive customs union with the EU, is a strong and balanced package that would retain the benefits of the Single Market. Parliament should have the opportunity to debate and vote on it.’
The EU Withdrawal Bill will be debated in the Commons for a mammoth 12-hour session next Tuesday.
The PM is facing the tricky task of trying to overturn all 15 changes to the Bill lodged by Remainer peers.