Cabinet At War Over Brexit 'Dodgy Dossier'

One Cabinet minister describes it as "hard-headed analysis", another calls it a "dodgy dossier".

A Government study published today warns that if the UK leaves the EU "huge numbers of British companies with supply chains in Europe would suffer".

The report looks at the range of alternatives to remaining in the EU, including arrangements used by countries like Norway, Switzerland and Canada and concludes that "Britain would be weaker, less safe and worse off outside the EU".

The Government is required by law, under the EU Referendum Act, to state what the different options are.

It finds the option that would offer the cleanest break with the European Union would be for the UK to revert to World Trade Organisation rules, meaning new tariffs on UK exports to the EU.

:: If UK Quits EU: Answers To The Key Questions

Speaking ahead of the publication, Foreign Secretary Philip Hammond said: "Hard-headed analysis shows that every alternative to remaining in a reformed EU would leave Britain weaker, less safe and worse off.

"Working people would pay the price with fewer jobs and rising prices.

"The report concludes that Britain is stronger, safer and better off in a reformed European Union.

"Our special status gives us the best of both worlds: in the parts of Europe that work for us, but outside those that do not."

But fellow Cabinet Minister Iain Duncan Smith disagrees.

The Work and Pensions Secretary said: "This dodgy dossier won’t fool anyone, and is proof that Remain are in denial about the risks of remaining in a crisis-ridden EU.

"The truth is, we won’t copy any other country’s deal. We will have a settlement on our own terms - and one that will return control of our borders, and money to Britain. That’s the safer choice."

'In' campaigners say Vote Leave needs to set out how that will work.

The Government report suggests there would be "significant trade-offs" in exchange for meaningful access to the EU's free-trade Single Market.

It suggests Norway’s model would mean making a large contribution to EU spending, while accepting the principle of free movement of people, while Switzerland and Canada’s current arrangements only give limited access to the Single Market.

"Under both these models, UK financial services firms could face increased costs as they would no longer have 'passports' allowing them to sell to the EU market without needing extra permits."

'Out' campaigners say they are not suggesting an "off-the-shelf" arrangement and point to polling data suggesting that neither Switzerland nor Norway show any inclination towards joining the EU.

:: Foreign secretary Philip Hammond will be live on Sky News after 8am.