No-deal Brexit: Tory donors warn Theresa May she must be prepared to walk away

Pro-Remain ministers accused of suffering from Stockholm syndrome

Theresa May holds a press conference on the second day of European Council meetings (Getty)

Senior Conservative Party donors have warned Theresa May she should be prepared for a no-deal Brexit rather than accepting an “unsatisfactory and unfavourable deal” which could cause divisions for another generation.

One donor said he feared some pro-Remain ministers were suffering from Stockholm syndrome, where hostages begin to trust their captor, and were “keen to increase” Britain’s “fragility”, The Observer reported.

Another said David Cameron’s failure to secure major concessions over Britain’s membership of the EU before last year’s referendum showed the dangers of accepting a bad deal.

The warnings come after pro-EU MPs said businesses would face the “cliff edge” Brexit which they had long feared if Britain walked away from negotiations with Brussels.

Lord Michael Farmer, a Tory peer and former party treasurer, told The Observer: “It is worth recalling the paltry offer that Cameron came back with, which was an important factor in persuading people to vote out.

“If another unsatisfactory and unfavourable deal is done with the EU negotiators, the divisive issue of Europe will not go away but smoulder on for another generation.”

He added that “no deal” could “free” and “challenge” Britain to take advantage of new possibilities and opportunities.

Jeremy Hosking, the Vote Leave and Conservative donor, stressed the need for “robust no-deal contingency planning” in light of a lack of progress in trade talks with Brussels.

He said: “The EU is stonewalling on the divorce bill, increasing intolerably the political pressure on Ms May, and we still have no idea whether the trade deal will be beneficial to the UK, or whether they will kick us further in the teeth when we are down.”

Suggesting a link with Stockholm syndrome, he added that some ministers were doing nothing to help Britain escape from its “vulnerable position”.

Earlier this month, EU negotiators said talks between the two sides had stalled, with trade discussions likely to be delayed by months, increasing the chance of no deal being agreed.

The Brexit Department said negotiations were being approached in a “constructive way”, but that it was the “duty of a responsible government” to plan for a range of scenarios.