Brexit: Liam Fox tells EU leaders they risk being kicked out by their own voters if they reject May's plan

Smaller EU states warned against 'disproportionate pain' of a no-deal outcome - 'if those politicians want to get re-elected'

Liam Fox has issued an extraordinary warning to EU leaders that they risk being kicked out by their own voters if they reject Theresa May’s new Brexit plan.

The alternative was the UK crashing out of the EU without a deal – which, the trade secretary claimed, would inflict “disproportionate pain” on Britain's smaller neighbours.

Dr Fox urged elected leaders to seize control of the process from Brussels to prevent a no-deal outcome, saying: “The pain that would occur would not be evenly spread across Europe.

“You can see it having a disproportionate impact on economies such as the Netherlands, Belgium or Ireland.”

On who should make the decision, he added: “It needs to be the actual countries with elected governments – that need to get prosperity and jobs and trade if those politicians want to get re-elected.”

Nevertheless, Dr Fox – who, unlike fellow Brexiteers Boris Johnson and David Davis has backed the plan agreed at Chequers – was gloomy about reaching agreement in Brussels.

Asked if the EU would accept the customs proposal, which would mean the UK collecting EU tariffs, he replied: “That’s of course impossible for me to say at the moment.

"One can imagine what might be the sort of objections that might come forward."

The trade secretary insisted the Chequers plan was a “credible proposition”, but admitted: “This is a completely unprecedented set of options being put forward.”

During the evidence session, with the Commons international trade committee, Dr Fox also:

* Did not rule out resigning if the UK accepted staying in a customs union – insisting it would be better for the UK to leave without a deal.

* Revealed would be meeting Donald Trump during his visit to the UK and discussing trade, saying: “I would imagine that was a likely topic.”

* Was unable to name a single services-only trade deal anywhere in the world – although the UK will be seeking them, if it remains aligned with the EU on goods.

* Floated the idea of "UK-only mark” on goods – which might allow deals to be reached – but admitted it was “theoretical” and would require EU approval.

* Vowed to fight a preferential migration deal for EU citizens – something not ruled out by the prime minister – demanding a "level playing field for global talent".

Ministers have repeatedly insisted a no-deal Brexit remains an option – despite civil servants warning of food and medicine shortages and huge tailbacks at the UK’s borders.

But a former cabinet minister told The Independent that Tory MPs would prevent it, with more than 50 ready to rebel, believing the UK would be the biggest loser.

At the committee hearing, Nigel Evans, laid bare Brexiteer anger, protesting that Olly Robbins, Ms May’s top EU adviser, appeared to have “taken control” and “rammed us further away from the Brexit" people voted for.

“There's an assumption that there's now been a capitulation and a sellout by the cabinet to the European Union,” he said.

But Dr Fox insisted the Chequers plan did not cross any red lines, insisting it would end free movement of people, European Court jurisdiction and large payments to the EU.