Tory Eurosceptics say they have 'killed off' Theresa May's Brexit compromise after she backs down

Theresa May has bowed to the demands of Tory Eurosceptics by accepting amendments which they believe will will off the Prime Minister's Brexit plans.

The Government confirmed that it is accepting four amendments to the Customs bill, including one which would stop the UK from collecting duties on behalf of the EU post-Brexit unless it agrees to do the same.

Tory Eurosceptics believe that the amendment will "kill off" the Prime Minister's Chequer's compromise because Brussels will not be prepared to collect tariffs on behalf of the UK.

However Downing Street insisted that the deal was not dead and that the amendments are "compatible" with the Prime Minister's Brexit paper.  

The amendments were due to be put to a vote on Monday evening, where Tory Brexiteers were expected to vote against the Government in the biggest rebellion of the Prime Minister's Premiership/.

The other measures on which the Government is expected to climbdown include outlawing a customs border in the Irish Sea, to require an Act of Parliament to be passed by ministers if they want to keep the UK in the customs union and to ensure Britain has its own VAT regime after withdrawal.

Mrs May’s Government has been plunged into chaos in recent weeks after she unveiled her Chequers compromise deal, with Boris Johnson, the former foreign secretary, and David Davis, the former Brexit secretary, both quitting in protest.

The Prime Minister’s Chequers plan would see the UK and EU adhering to a "common rule book" covering a new "UK-EU free trade area".

But it has been heavily criticised by both Remain-backing MPs and those who backed Leave.

The turmoil continued on Monday as a Tory former Cabinet minister called for a second Brexit referendum, Eurosceptics said the Chequers plan was “dead” and another Tory MP quit their Government role - the ninth person to resign since Mrs May agreed her plan with her Cabinet.

Justine Greening, the former education secretary, claimed senior Tories are ready to break ranks and join her in calling for a second Brexit referendum.

She said the nation should be asked to decide between three options: Mrs May’s plan for a softer Brexit, a hard "no deal" Brexit and staying in the European Union.

Ms Greening, who has described the Prime Minister’s Chequers deal as the “worst of both worlds”, said it was time to put Brexit “back in the hands of the people” as she warned Parliament was “gridlocked” on the issue.

“There is only one way through that gridlock and that is to take the decision away from Parliament which has spent two years trying to find a way through and failed and give it back to the people,” she said.

“We now know what those clear options are. Two of them are Brexit - either a soft Brexit or a hard Brexit effectively - but it is time now for people to choose.”

Ms Greening said she would campaign for the third option - for Britain to remain a member of the EU - as she took aim at the Prime Minister’s plan and said there was “no point signing up to a common rule book if you are not sat round the table”.

Asked if other senior Tories agreed with her call for a second referendum, she told  BBC Radio 4’s Today programme: “Yes, I believe so.”

A Downing Street spokesman said "there is not going to be a second referendum under any circumstances”.

Sir Bernard Jenkin, the leading Tory Brexiteer, said Ms Greening’s proposal was “ill-thought out” and would “extend the uncertainty for another long period”.

He also claimed Mrs May’s Chequers agreement had no hope of moving forward.

“I suspect the Chequers deal is in fact dead,” he said.

“I am afraid it is neither beloved by Remainers or Leavers… it is also quite likely to be either rejected by the European Union or more demands will be made upon it so it will be even less acceptable.”

Sir Bernard's comments came as Scott Mann, a Parliamentary Private Secretary at the Treasury, became the latest Tory MP to quit his Government role in protest over Mrs May's withdrawal strategy.  

Mr Mann said he had taken the decision to resign because supporting Mrs May's plan would "put me in direct conflict" with many of his constituents in North Cornwall. 

"I am not prepared to compromise their wishes to deliver a watered down Brexit," he said. 

Meanwhile President Donald Trump said Mrs May needed a "carve out" in any agreement with the EU to ensure the UK can make a deal with the US.

He told Good Morning Britain: "I think we're going to have a great trade deal. Now, if they do whatever they do, they have to... I said, make sure that you have a carve out.

"You know, I've called it a carve out for this. You have to have a carve out where no matter what happens they have the right to make a deal with the United States."