Business

Theresa May tells Conservative rebels to back her or lose Brexit

Prime Minister Theresa May today warned her Conservative party to back her or risk Brexit not happening, as the threat of a leadership challenge from Eurosceptic MPs builds.

May said that rejection of the negotiating position she set out last week would “risk ending up with no Brexit at all”, and said MPs need to “just keep our eyes on the prize”.

The Prime Minister has faced a furious response, including multiple high-profile ministerial resignations, from her own party over the Cabinet white paper agreed at Mays country residence, Chequers just over a week ago.

Former senior ministers including David Davis and Boris Johnson have objected to the Cabinet model for the post-Brexit trading relationship, in which the UK subscribes to a “common rulebook” for goods, while pursuing “regulatory freedom” for services.

Read more: Brexit white paper: City figures scathing over "blow" to financial services

May today tried to sell the white paper to MPs, saying to the BBC that “the common rulebook enables us to strike trade deals around the world”. The white paper represents the governments position on Brexit, but would still have to be agreed by the EU.

However, critics say accepting the EU rulebook on goods would reduce the scope for cutting regulations after leaving the bloc, while making it harder to make trade deals with non-EU countries.

The government faces the prospect of further rebellion against the white paper, after prominent backbench Tory Eurosceptic Jacob Rees-Mogg wrote in the Sunday Express that May is a "Remainer who has stuck with Remain".

US President Donald Trump added to the difficulties for May at the end of last week, saying that the white paper “will probably kill the deal” on trade between the UK and the US after Brexit, during an extraordinary state visit.

Read more: Trump warns new Brexit proposals make a UK-US trade deal less likely

May revealed today that Trump advised her to “sue the EU” rather than sitting down in Brexit negotiations, although she added that he also said “Dont walk away” from negotiations.

The Prime Minister admitted that the white paper was prompted by a need to compromise with the EU following her earlier Mansion House speech, but asked MPs to "come together behind our plan", in an article in the Mail on Sunday. The new offer would satisfy the “non-negotiable” UK demands of an end to free movement of people, leaving the EUs customs union, and the end of the jurisdiction of the European Court of Justice (ECJ), she said today.

May left open the possibility of a “mobility” regime to allow business travel, without the rights of residency currently guaranteed by EU membership, and admitted the ECJ will still have influence on UK law.

She added that “chaotic leaving” would be bad for the country, saying: “No deal is still there, it is still possible, but I think the best thing for the UK is to have a deal that sets a good relationship with our trading partners in the future”.

Read more: The government's Brexit blueprint revealed: City's model dropped

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