Labour conference live: Party unveils Brexit 'fudge' as bosses leave door open for second EU referendum

• Labour bosses propose conference fudge on second Brexit referendum

• Party would back it - but only if MPs reject PM's deal, no election called 

• Delegates to vote on making second referendum an "option" on Tuesday

• Jeremy Corbyn says he will be "bound" by conference vote

• First day of conference dominated by anti-Semitism

• John McDonnel to announce plan for multi-billion raid on companies

Labour will back a second Brexit referendum but only if Theresa May’s divorce deal is voted down by Parliament and the Prime Minister refused to then call a general election, under plans set to be adopted by the party.

Labour bosses spent five hours thrashing out a motion on Brexit on Sunday night which delegates will vote on tomorrow which will leave the door open to the party campaigning for another national poll.

The move comes after Jeremy Corbyn, the Labour leader, said he would be “bound” by any decision made by conference on the issue.

However, the motion is likely to spark anger among ardent Remain supporters because the commitment to a second vote is predicated on caveats rather than being unconditional which will almost certainly prompt accusations of a fudge.

The Brexit shift comes after more than 100 constituency Labour parties submitted motions to conference calling for a so-called “People’s Vote”.

The move risks a damaging split at the heart of the party with Len McCluskey, the influential Unite the union boss, warning against campaigning for a second referendum because it could push Leave-backing Labour voters to the Tories.

Labour frontbenchers have long maintained that all options should be on the table in the event Mrs May cannot get her deal agreed by MPs.

But the conference motion makes it clear for the first time that the party believes a second referendum is an option it could back.

The motion, reported by HuffPost, says: “Should Parliament vote down a Tory Brexit deal or the talks end in no-deal, Conference believes this would constitute a loss of confidence in the Government.

“In these circumstances, the best outcome for the country is an immediate general election that can sweep the Tories from power.

“If we cannot get a general election Labour must support all options remaining on the table, including campaigning for a public vote.

“If the Government is confident in negotiating a deal that working people, our economy and communities will benefit from they should not be afraid to put that deal to the public.”

The motion is expected to be agreed by an overwhelming majority of delegates after a poll of party members found 86 per cent think voters should have the final say on the outcome of Brexit negotiations.

The first day of conference in Liverpool was dominated by Brexit and the party’s ongoing row over anti-Semitism as Labour MPs lined up to criticise Mr Corbyn’s leadership.

John McDonnell, the shadow chancellor, will today try to switch focus onto the economy by announcing a controversial plan to seize control of company profits as part of a multi-billion pound raid.

Mr McDonnell will unveil a proposal which would force companies to handover up to 10 percent of their shares to workers.

Meanwhile, Angela Rayner, the shadow education secretary, will announce a Labour government will stop schools being converted into academies and scrap the Government’s free schools initiative.