Tory rebels inflict Commons Brexit defeat on May

MPs have fired a warning shot across the Government’s bows as they backed an amendment intended to limit ministers’ tax raising powers in the event of a no-deal Brexit.

The Commons voted by 303 to 296 – a majority of seven – in favour of the cross-party amendment to the Finance Bill tabled by senior Labour MP Yvette Cooper and Conservative former Cabinet minister Nicky Morgan.

Twenty Tory rebel MPs defied the whips to back the change – including former ministers Kenneth Clarke, Sir Michael Fallon, Justine Greening, Dominic Grieve and Sam Gyimah.

Ahead of the division, ministers sought to play down the significance of the amendment, insisting it made only the “most minor and technical changes” to the legislation.

Downing Street described it as an “inconvenience” which would not prevent the Government collecting taxes.

But as the Commons prepared to resume the debate on Theresa May’s Brexit deal, leading to a crunch vote next week, Labour leader Jeremy Corbyn said it was an “important step” towards preventing a no-deal break with Brussels.

“It shows that there is no majority in Parliament, the Cabinet or the country for crashing out of the EU without an agreement,” he said.

“That is why we are taking every opportunity possible in Parliament to prevent no deal. Theresa May must now rule out no deal once and for all.”

Ms Cooper, the chairman of the Commons Home Affairs Committee, said the vote was a warning to ministers not to “drift” into a no-deal “by accident or through brinkmanship”.

“Whilst this amendment only applies to the Finance Bill, and whilst there are still a wide range of different views on the best way forward, it shows that enough MPs are ready to come together in a sensible way to oppose a chaotic no-deal,” she said.

Earlier, Work and Pensions Secretary Amber Rudd told Cabinet colleagues history would take “a dim view” of them if they allowed Britain to leave the EU without a deal.

Her warning came as Mrs May told the first meeting of her top team since the Christmas break that she continues to seek assurances from the EU to address MPs’ concerns over issues like the proposed “backstop”.

Meanwhile, Business Secretary Greg Clark told the House of Commons that a no-deal Brexit “should not be contemplated”.

Mrs May will make a final pitch for MPs to back her agreement moments before they vote.

Downing Street confirmed that the so-called “meaningful vote” is scheduled to take place on Tuesday January 15, with the Prime Minister wrapping up five days of debate kicked off on January 9 by Brexit Secretary Stephen Barclay.

Without some movement from Brussels, Mrs May is expected to lose the division, which was postponed in December when it became clear that the Government would be defeated.

Irish premier Leo Varadkar said the EU was “happy to give” the UK fresh assurances, telling the Irish Times: “We don’t want to trap the UK into anything.”

But it remains doubtful that progress will be made in this area before debate commences on Wednesday, with the PM’s official spokesman saying only that it was hoped to inform MPs of any EU assurances “before the vote”.

Number 10 denied a report that the Government was talking to Brussels about extending Article 50 to buy more time by delaying Britain’s departure from the EU.

“We will not be extending Article 50,” said Mrs May’s official spokesman, who confirmed that it remained the PM’s position that the UK will leave the EU on March 29.

There was little sign that opposition to Mrs May’s deal among Tory Brexiteers had softened over the Christmas break, with several who attended a drinks reception at Number 10 on Monday evening saying they would vote against the plan.

Environment Secretary Michael Gove told Cabinet that those considering rejecting Mrs May’s agreement in the hope of securing a better deal were like swingers in their mid-50s waiting for film star Scarlett Johansson to turn up on a date.

Ms Rudd added “or Pierce Brosnan”, only for Justice Secretary David Gauke to quip that it was like “waiting for Scarlett Johansson on a unicorn”.

The Work and Pensions Secretary, who backed Remain in the 2016 referendum, told fellow ministers: “History will take a dim view of a Cabinet that presses ahead with no deal. We have to face the world as we find it, not as we wish it to be, and we have to deal with the facts as we find them.”

As a former home secretary, she warned that the UK would be “less safe as a country” under a no-deal Brexit.

And she said: “More than ever we need to find the centre, reach across the House and find a majority for what will be agreed. Anything will need legislation.

“I want us to proceed with Brexit, I want to find the will of the House.”

Speaking during a visit to Mali, Mr Varadkar said there was currently “close contact between the UK and EU institutions on whether a further set of written guarantees, explanations and assurances could make a difference”.

He added: “Bear in mind, a lot of the opposition to the Withdrawal Agreement and the backstop might be based on suppositions and misunderstandings about our intent as a European Union.

“We don’t want to trap the UK into anything – we want to get on to the talks about the future relationship right away. I think it’s those kind of assurances we are happy to give.”