Tory Brexit civil war deepens as MPs slam Remainer ministers for colluding with businesses to plot 'Project Fear Mark II'

  • Theresa May forced to deny at PMQs that her Cabinet is in meltdown over Brexit 
  • Greg Clark faces backlash after urging firms to keep warning over no deal Brexit
  • Mrs May is gathering her Cabinet for an 'away day' at Chequers next week
  • Brexiteers fear the PM will try to bounce ministers into concessions to the EU 

By James Tapsfield, Political Editor For Mailonline and Kate Ferguson, Political Correspondent For Mailonline

Published: | Updated:

The Tory Brexit civil war deepened today as MPs accused Remainer ministers of ganging up with business to try to force Britain to keep closer ties with the EU.

Backbenchers said elements in the Cabinet were colluding to mount 'Project Fear Mark II' and peddling gloom-laden warning in an effort to get the PM to change her approach.

It comes after days of open warfare between ministers who back radically different Brexit visions.

Business Secretary Greg Clark urged companies to keep pushing for a 'soft' Brexit.

By contrast, Jeremy Hunt condemned the dire warning - from Airbus among others - as 'inappropriate' while Boris Johnson bluntly told a private reception 'f*** business'.  

Theresa May was forced to deny the Cabinet is in meltdown today as she faced a torrent of jibes about it in PMQs today.  

Deputy speaker Nigel Evans urged both camps to 'put a sock in it' over fears the public are getting exasperated by Tory in-fighting.   

At PMQ this afternoon, Mrs May played down the spat and insisted the government was determined to get a 'good deal for for the UK and a good deal for business'

At PMQ this afternoon, Mrs May played down the spat and insisted the government was determined to get a 'good deal for for the UK and a good deal for business'

Eurosceptics branded Greg Clark (pictured in Downing Street yesterday) 'ridiculous' for encouraging firms to keep warning about the consequences of 'no deal' with the EU
Jeremy Corbyn (pictured at PMQs) said the government was still negotiating with itself rather than the EU

Eurosceptics branded Greg Clark (pictured left in Downing Street yesterday) 'ridiculous' for encouraging firms to keep warning about the consequences of 'no deal' with the EU. Jeremy Corbyn (pictured right) said the government was still negotiating with itself rather than the EU

Jacob Rees-Mogg said Remainer ministers - including Chancellor Philip Hammond - were ganging up with 'politicised businesses'. 

'I think there's cooperation between the Remainers in the Cabinet and some businesses, some of the more politicised businesses,' he told Sky News. 

Asked who he was referring to, Mr Rees-Mogg said: 'Oh, the Chancellor. 

'Boris Johnson was quite right when he said the Treasury is the beating heart of Remain.'

At PMQs this afternoon, Mrs May played down the spat and insisted the government was determined to get a 'good deal for for the UK and a good deal for business'.

'I believe we will achieve that,' she said.

Tensions have escalated ahead of a Cabinet 'away day' at Chequers next week that Mrs May hopes will thrash out proposals for future trade ties.

Brexiteers fear Mrs May will use the gathering to try to bounce them into concessions - anxiety that has been fuelled by the strident intervention from Mr Clark.

Senior Tory and deputy speaker Nigel Evans, a Eurosceptic, expressed his concern about the effects of ministers squabbling.

He said: 'From the Cabinet down we need to get behind the PM in these negotiations. 

'These noises off are deeply irritating, whether they come from Boris Johnson or Philip Hammond. The only person enjoying it is Michel Barnier.

'We have got the best leader, whatever some of these others may think. No-one believes that if Theresa May went the Government would somehow coalesce – forget it.

Truss slams Gove over 'nanny state' environmental crackdown and brands Williamson 'macho'

Downing Street slapped down Liz Truss today after she launched a full-frontal attack on Michael Gove over his 'nanny state' environmental policies.

The Treasury Chief Secretary also branded Gavin Williamson 'macho' for his posturing on the defence budget.

The extraordinary public jibes came in a speech at the London School of Economics last night.  

Miss Truss took aim at Mr Gove over proposed plastic straws ban and crackdown on polluting woodburners.

'Many of the rules that we have in place are important in guaranteeing public safety,' she said.

'But it's hard to shake the feeling that sometimes they just get in the way of consumer's choices and lifestyles.

'And government's role should not be to tell us what our tastes should be.

'Too often we're hearing about not drinking too much eating too many doughnuts, drinking from disposable cups through plastic straws, or enjoying the warm glow of our wood-burning Goves…I mean stoves.

'I can see their point: there's enough hot air and smoke at the Environment Department already.' 

In a remark clearly aimed at Mr Williamson - who is demanding an extra £4billion a year for defence - Miss Truss said it was 'not macho' to call for bigger budgets. 

Asked about Miss Truss's attack on Mr Gove, a No 10 source said: 'As I understand it, several portions of that speech were intended to be humorous.'

The source said the PM was committed to both the ban on plastic straws and the anti-obesity strategy, which were attacked by Miss Truss.

'We have a 25-year environment plans and the PM is committed to reducing single-use plastic waste.'

No 10 said Mrs May retained 'full confidence' in Miss Truss.

But sources confirmed that her advisers are being 'spoken to' about the fact that key passages in the speech – including the attack on Mr Gove – were added after it had been cleared by No 10. 

'The public are getting exasperated, and we know from history where that will leave us. It's time to put a sock in it. 

'Socks usually come in pairs, so I would have one for the Brexiteers and one for the Remainers. Enough is enough.'

Mrs May tried to soothe the row with some of the country's largest firms today by insisting that she would always back business.

Mr Clark told a conference for chief executives in London last night that the 'voice of business... must continue to be heard'. 

'The business voice is absolutely foundational to a successful and effective negotiation,' he said.

He acknowledged that the Cabinet's public rows about Brexit were damaging, saying: 'What business doesn't want is a running debate between different members of the same government.

'Businesses look with dismay when there's disagreement, it does not inspire confidence.'

Warning against the 'certain damage of no deal', Mr Clark urged a Brexit agreement with no tariffs or customs frictions that applied to goods and services - adding that maintaining 'labour mobility' would be crucial.  

Justice Secretary David Gauke sided with Mr Clark today, saying Mr Johnson's blunt jibe at business was 'probably not wise'. 

'Business is hugely important to us and I certainly don't think anyone should be dismissive,' he told BBC Radio 4's Today programme.

But Brexit minister Steve Baker delivered a thinly veiled rebuke by tweeting: 'Government policy is, and must remain, to leave the EU's internal market as we leave the EU.'  

David Jones, a former Brexit minister, told The Daily Telegraph: 'Cabinet ministers should be informing business of what the Government is doing to ensure we get a good deal.

'This is ridiculous. You don't take your lead from businesses, you set the policy and then inform the debate.

'What he is doing is communicating a sense of panic, rather than a sense of reassurance. There is a risk he is unwittingly participating in Project Fear Mark II, which is being orchestrated by EU-based businesses.' 

In the Commons, Mrs May said the Tories had 'always been the party that will back business', but did not directly tackle the alleged comments made by Mr Johnson.

Jeremy Corbyn shot back: 'I take the Prime Minister's response as a thumbs down to the Foreign Secretary'.

And she suggested the Labour leader had a decision to make, either to 'back business or he can want to overthrow capitalism - he can't do both'.

He later told MPs: 'No deal is a bad deal, but isn't the truth that the real risk to jobs in our country is a Prime Minister who is having to negotiate round the clock with her own Cabinet to stop it falling apart, rather than negotiating to defend jobs of workers in this country?'

The Prime Minister defended her Government's record, adding that Britain is a country 'fit for the future and leaving the European Union on the 29th of March 2019'.

Mr Corbyn raised concerns about potential job losses if there was a no-deal outcome, as he asked Mrs May to reassure workers and take the 'phoney threat of no deal off the negotiating table'.

Tory MPs cheered as Mrs May replied: 'He has raised the question of Airbus, well if he is so concerned about our aerospace and aviation industry, why did he not back the expansion of Heathrow in this chamber?'

Suspicions have been raised about Mrs May's intentions after sources confirmed the full Cabinet will attend the Chequers meeting on July 6.

Mrs May previously failed to get a customs 'partnership' plan past her smaller Brexit 'War Cabinet' and some MPs believe she is trying to bypass the group in favour of a forum where she has more Remain-minded allies. 

One Cabinet source told MailOnline: 'We haven't seen an agenda yet. This is the moment she tries to bounce a deal through.'

But Mr Rees-Mogg told MailOnline that Mrs May would not be able to get a soft deal past Parliament.

'Now the Withdrawal Act has received royal assent it is the time for the Government to flex its muscles,' he said. 

'In the absence of a good deal we will leave on March 29, 2019 with no deal and I cannot see Parliament agreeing to pay £39billion for nothing.'

Ministers have been deadlocked for months over how close the UK's relations should be with the EU after Brexit.

Brexiteers have been pushing for a 'Maximum Facilitation' customs plan that would rely on technology to reduce friction on trade.

The PM (pictured in Downing Street today) is gathering her senior team at her country retreat next week in a desperate bid to hammer out a joint position on future trade ties

The PM (pictured in Downing Street today) is gathering her senior team at her country retreat next week in a desperate bid to hammer out a joint position on future trade ties

Boris Johnson (pictured in the Commons yesterday) is one of the leading Brexiteers in the Cabinet
Jeremy Hunt said at the weekend that businesses giving dire warnings would only undermine the PM at a crucial stage in negotiations with the EU

Boris Johnson (pictured in the Commons yesterday) is one of the leading Brexiteers in the Cabinet. Jeremy Hunt said at the weekend that businesses giving dire warnings would only undermine the PM at a crucial stage in negotiations with the EU

However, supporters of a softer Brexit - including Mrs May - have been pushing a customs partnership that would mean the UK collecting import tariffs on behalf of Brussels. Proponents claim the system could help avoid a hard Irish border, and end the standoff in negotiations with the EU.

Downing Street has denied claims that Mrs May's favoured customs partnership proposal is dead.

Boris Johnson reportedly said 'f*** business' when asked about fears over Brexit at a Foreign Office reception last week.

Mr Hunt, the Health Secretary, piled in at the weekend telling Airbus its gloomy warnings were 'inappropriate' and risked undermining the PM in the talks.

However, the Prime Minister told a CEO summit in London that businesses 'create wealth' and she would 'always listen to you'.

Meanwhile Mrs May's former chief of staff Nick Timothy warned about the dangers of accepting freedom of movement in a Brexit deal.

He said Britain would be signing himself up to the 'worst possible' deal by agreeing to it. 

Timothy urged the Prime Minister to toughen her negotiating strategy after it emerged that several Cabinet ministers want open borders for workers to continue after Britain leaves the EU.

Mr Timothy, one of Mrs May's closest allies, said she has been 'undermined' by Parliament and her own Cabinet, writing in the Daily Telegraph: 'The time for playing nice and being exploited is over.'

He accused Chancellor Philip Hammond of blocking 'meaningful no-deal planning'.

'This is ridiculous, and it has to stop,' he wrote. 'The EU showed last December – when the talks faltered over Northern Ireland – that they want a deal.

'But they want a deal on the best terms for them, and the very worst for Britain. As things stand, they might well succeed.'

Who are the key Cabinet players at the Chequers away-day and where do they stand on Brexit?

The Cabinet is gathering at Chequers for an away-day to thrash out the government's Brexit proposals. Pictured is a previous meeting at the PM's country retreat in 2016

The Cabinet is gathering at Chequers for an away-day to thrash out the government's Brexit proposals. Pictured is a previous meeting at the PM's country retreat in 2016

Prime Minister Theresa May

Backed Remain, has since insisted she will push through Brexit, leaving the single market and customs union. 

Cabinet Office Minister David Lidington 

A strong Remainer during the referendum campaign, recently made clear he has not changed his mind about it being better if the country had chosen to stay in the bloc.

Chancellor Philip Hammond

Seen as one of the main advocates of 'soft' Brexit in the Cabinet. Has been accused of trying to keep the UK tied to key parts of the customs union for years after the transition ends. 

Home Secretary Sajid Javid 

Brought in to replace Amber Rudd after she resigned amid the Windrush scandal, Mr Javid was seen as a reluctant Remainer in the referendum.

Many thought the former high-flying banker would plump for the Leave campaign, but he eventually claimed to have been won over by the economic case. He is likely to focus be guided by evidence about trade calculations in discussions over how closely aligned the UK should be with the EU.

Foreign Secretary Boris Johnson 

The Brexit champion in the Cabinet, has been agitating for a more robust approach and previously played down the problems of leaving with no deal. 

He is unhappy with plans for a tight customs arrangement with Brussels - warning that it could effectively mean being lashed to the EU indefinitely. Said to have bluntly dismissed concerns from pro-EU companies by saying 'f*** business'.

Environment Secretary Michael Gove

Has buried the hatchet with Mr Johnson after brutally ending his Tory leadership campaign in the wake of David Cameron's resignation.

Thought to be less concerned with short term concessions that Mr Johnson, but focused on ensuring the UK is free from Brussels rules in the longer term.

Brexit Secretary David Davis 

A long-time Eurosceptic and veteran of the 1990s Maastricht battles, brought back by Mrs May in 2016 to oversee the day-to-day negotiations.

He has said the government will be seeking a 'Canada plus plus plus' deal from the EU. 

International Trade Secretary Liam Fox

Another Brexiteer, his red lines are about the UK's ability to strike trade deals with the rest of the world, and escaping Brussels red tape. 

Business Secretary Greg Clark  

On the soft Brexit side of the Cabinet, Mr Clark has supported Mr Hammond's efforts to maintain close links with the customs union. Came out strongly to defend business from Eurosceptic criticism, and has suggested the UK needs to stay closely tied to the single market.

Defence Secretary Gavin Williamson 

Formerly a close ally of the Prime Minister and once viewed by some as her anointed successor. 

They appear to have fallen out over defence funding, and he has sided with Brexiteers on customs arrangements and the need for Britain to be able to diverge from EU rules.

Northern Ireland Secretary Karen Bradley 

Supported Remain and has joined the push for soft Brexit. Key backer of the customs partnership plan who has insisted avoiding a hard Irish is the top priority.

Health Secretary Jeremy Hunt 

A Remainer in the referendum campaign, Mr Hunt has since embraced the Brexiteer arguments - with speculation that he is positioning for a tilt at the top job should Mrs May be abruptly ousted. He has been heavily 

Justice Secretary David Gauke

A former Chief Secretary to the Treasury when George Osborne was Chancellor, Mr Gauke has a keen understanding of the finances and how they might be affected by Brexit. He will take a pragmatic approach but is thought more likely to side with the Remainer faction.

Education Secretary Damian Hinds

A largely unknown quantity on Brexit, having backed Remain in 2016 but kept a low profile since.

Many believe he will take his lead from Mrs May, who fast-tracked his career into Cabinet in January this year.

Communities Secretary James Brokenshire

Another long-term May ally and previously seen as on the Cameroon wing of the party. He was brought back into the Cabinet immediately after returning from sick leave, and is expected to support the PM's decisions on Brexit.

Work and Pensions Esther McVey 

Staunch Brexiteer in the referendum battle - even though she was out of parliament at the time. She took George Osborne's old Commons seat of Tatton when he stood down to edit the Evening Standard, but shows no sign of sharing his Remainer views.

Transport Secretary Chris Grayling

The campaign manager for Mrs May's Tory leadership, he is one of the hardest line Brexiteers in Cabinet but prefers to keep arguments behind closed doors.

He is loyal to the PM but will not compromise his commitment to making a clean break from the EU. 

International Development Secretary Penny Mordaunt

Earned her Brexiteer spurs during the referendum by publicly taking on David Cameron over whether Turkey was going to join the EU.

She is independent minded and highly ambitious, and likely to side with the harder Eurosceptic line in the Cabinet debate.

Culture Secretary Matt Hancock

Mr Hancock was for years seen as an Osborne acolyte, having served as his chief of staff before becoming an MP.

However, he is now starting to move out of his former mentor's shadow. Thought to be Remain minded, but could swing if it looks like opinion is ranged against the PM.

Conservative Party chairman Brandon Lewis

A triathlon fan, Mr Lewis knows all about battling over the finish line. As a former immigration minister he is also well aware of the emphasis voters put on tightening up UK borders.

Expected to back a pragmatic solution, while sticking to the line that the UK must have the freedom to strike its own trade deals and control regulations.   

Scottish Secretary David Mundell 

Mr Mundell has been under intense pressure from the SNP to push for a softer Brexit within government. But in public he and the dozen other Scottish Tory MPs have succeeded in treading the tricky line between supporting Brexit and calling for close links to be maintained.

Welsh Secretary Alun Cairns

Campaigned for Remain in the referendum, but Wales voted narrowly to Leave. His detailed views on Brexit are not clear. 

Leader of the Lords Baroness Ruth Evans

Well aware of the practical difficulties the government will face in getting a Brexit deal through parliament, having played a key role in stewarding the EU Withdrawal Bill through the Upper House. 

What are the two proposals for the UK's post Brexit customs plans

OPTION 1 - CUSTOMS PARTNERSHIP

Under the so-called 'hybrid model', the UK would collect EU import tariffs on behalf of Brussels.

Britain would be responsible for tracking the origin and final destination of goods coming into the country from outside the EU. The government would also have to ensure all products meet the bloc's standards.

Firms selling directly into the UK market would pay the tariff levels set by Brussels - but would then get a rebate if Britain's tariffs are lower.

Supporters of the hybrid plan in Cabinet - including Theresa May, Philip Hammond and Greg Clark - say keeping duties aligned up front would avoid the need for physical customs borders between the UK and EU.

As a result it could solve the thorny issue over creating a hard border between Northern Ireland and the Republic.

Mrs May has been advised by the chief whip that the hybrid option could be the only way of securing a majority in parliament for a Brexit deal.

But Brexiteers regard the proposal as unworkable and cumbersome - and they were joined by Sajid Javid and Gavin Williamson in criticising it at a tense 'War Cabinet' meeting last week.

There are fears the experimental system will either collapse and cause chaos, or prevent the UK from being able to negotiate free trade deals around the world after Brexit.

Mrs May has instructed official to go away and revise the ideas. Eurosceptics are braced for her to bring back the plan with only 'cosmetic' changes, and try to 'peel off' Mr Javid and Mr Williamson from the core group of Brexiteers.

They are also ready for Mrs May to attempt to bypass the 'War Cabinet' altogether and put the issue before the whole Cabinet - where she has more allies.

OPTION 2 - MAXIMUM FACILITATION

The 'Max Fac' option accepts that there will be greater friction at Britain's borders with the EU.

But it would aim to minimise the issues using technology and mutual recognition.

Goods could be electronically tracked and pre-cleared by tax authorities on each side.

Shipping firms could also be given 'trusted trader' status so they can move goods freely, and only pay tariffs when they are delivered to the destination country.

Companies would also be trusted to ensure they were meeting the relevant UK and EU standards on products.

Senior ministers such as Boris Johnson, Michael Gove and Liam Fox believe this is the only workable option.

But Remain minded Tories such as Mr Clark insist it will harm trade and cost jobs in the UK.

They also warn that it will require more physical infrastructure on the Irish border - potentially breaching the Good Friday Agreement. It is far from clear whether the government would be able to force anything through parliament that implied a hard border between Northern Ireland and the Republic.

The EU has dismissed the idea that 'Max Fac' could prevent checks on the Irish border as 'magical thinking'. 

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