Cameron In Further EU Referendum Climbdown

David Cameron is poised to announce a second climbdown in 24 hours on his EU referendum by ruling out spending taxpayers' money to keep Britain in the trading bloc.

Sky sources have revealed that after backing a change in the referendum question, he will now backtrack on removing the so-called 'purdah' period normally in place for referendums.

The move is to head off a Commons rebellion on MPs' first day back at Westminster after their summer break, with Tory Eurosceptics threatening to vote for a Labour amendment barring public spending during the EU referendum campaign.

As many as 40 Tory MPs had been willing to back the change unless Number 10 backtracked on removing 'purdah', which blocks governments from spending public money or using civil servants to help one side during elections and referendums.

The Conservatives attempted to remove purdah shortly after the election as they introduced legislation creating the EU referendum, which is due before the end of 2017.

But the move triggered a furious reaction from Eurosceptic Tory MPs , who said ministers were attempting to rig the vote by allowing public cash to be spent on keeping Britain in Europe.

Senior Tory MPs are said to have been secretly negotiating with Labour frontbenchers and an opposition amendment proposing a ban on public spending during the EU referendum was set to be backed by enough rebel Conservatives to defeat the Government.