Westminster today - as it happened: Ministers questioned over 'civil servant Brexit conspiracy' to keep UK in EU customs union

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Theresa May meets with Chinese president Xi Jinping

Theresa May met Chinese Premier Xi Jinping in Beijing, as she battled to keep her MPs onside at home.

The Prime Minister was hoping to make progress towards a post-Brexit trade deal with China, despite her International Trade Secretary, Liam Fox, warning that one might not be possible. Ms May gave Mr Xi a Blue Planet 2 box set, Downing Street said.

It came as Steve Baker, the Brexit minister, floated the claim in the Commons that civil servants may be distorting evidence to “influence” the Government to stay in the EU’s customs union.

The comments blindsided Downing Street, which said it was unaware that the allegation had been aired and declined to immediately comment.

Alongside Mr Baker, his boss – the Brexit Secretary David Davis – visibly winced as the minister confirmed the allegation, raised by his fellow anti-EU Tory, Jacob Rees-Mogg.

Key Points

• Ministers asked about 'civil service conspiracy' to influence policy in order to keep UK in customs union
• David Davis admits he knew about 'secret' Brexit assessments but says he told MPs about them last year
• George Osborne warns Theresa May she does not have the power to force through a hard Brexit
• Liam Fox plays down possibility of a full trade deal with China

[1 February 2018 08:53 · Kristin Hugo]

Welcome to the UK's Westminster live blog on what looks set to be another busy day in British politics.

[1 February 2018 08:57 · Kristin Hugo]

George Osborne, former Chancellor and now editor of the Evening Standard, has just been on the BBC Today programme. He warned Theresa May that she lacks the power to force through a hard Brexit, because Parliament is now in control of the withdrawal process.

There are “increasing numbers” of Tory MPs speaking up for keeping close economic ties with the EU, including remaining in the customs union, the former Chancellor said.

“The first rule of politics is that you have got to learn to count,” said Mr Osborne.

On the growing Conservative revolt, he said: “That is going to pose a challenge to the Government, of course, but it is also going to empower Parliament

“Last time I checked one of the principle arguments from the Brexiteers is that they wanted more parliamentary sovereignty."

Mr Osborne argued the economic harm from Brexit had been laid bare in this week’s leak of the secret Government analysis – with the greatest damage forecast from pulling out of the EU’s economic structures.

[1 February 2018 09:13 · Kristin Hugo]

Overnight, Liam Fox said Britain cast doubt on whether a "gold standard" trade deal with China is possible after Brexit.

He suggested "a series of measures for market access" could be an alternative arrangement.

The International Trade Secretary also gave his backing to beleaguered Theresa May, saying: “I think she is doing an excellent job and I do wish more of my colleagues could see the sort of leadership and commitment and positive agenda that’s been projected for Britain here in China."

More from Joe Watts here:

[1 February 2018 09:37 · Kristin Hugo]

  ↵Matt Hancock, the Digital, Culture, Media and Sport Secretary, has just launched his own app - and not everyone is taking it entirely seriously...

[1 February 2018 10:09 · Kristin Hugo]

In the House of Commons, MPs are putting questions to David Davis, the Brexit Secretary, and his ministers.

Lib Dem Tom Brake says UK car production has dropped since the referendum for the first time since 2009, while investment in the industry fell by £500m.

He suggested a lack of clarity over the Government's policy on the customs union was to blame.

But Brexit minister Suella Fernandes replied: "We are seeing a rise in manufacturing, we are seeing a rise in exports, we are seeing UK foreign direct investment at a record high, so I think the economy is doing very well and we are seeing encouraging signs and votes of confidence in the UK economy since Brexit."

[1 February 2018 10:15 · Kristin Hugo]

[1 February 2018 10:17 · Kristin Hugo]

Tory MP Antoinette Sandbach asks ministers to commission the Office for Budget Responsibility to model the potential impact of different Brexit scenarios and release the findings to MPs.

"The responsibilities of the OBR are laid out in legislation," replies Brexit minister Steve Baker. "We don't have any plans to change those responsibilities."

[1 February 2018 10:56 · Kristin Hugo]

David Davis says he knew late last year that Brexit impact assessments were being undertaken and told MPs on 6 December that work would be done to "quantify the effect of different Brexit outcomes as we come up to them".

The Brexit Secretary had come under pressure over suggestions he misled MPs in December after saying there were no Brexit impact assessments.

Mr Davis says "every forecast that has been made about the period post-referendum has been wrong". The Bank of England predicted a fall in exports and business investment but was proved wrong, he says. His department is trying to produce a more accurate analysis, he adds, admitting that he had discussed the matter with officials earlier this month.

[1 February 2018 10:57 · Kristin Hugo]

[1 February 2018 11:02 · Kristin Hugo]

Jacob Rees-Mogg asks ministers if they were aware of an allegation that civil servants had "deliberately developed a model to show that all options other than staying in the customs union were bad, and that officials intended to use this to influence policy". 

Brexit minister Steve Baker confirms he was aware of the allegation but says he considered it "implausible" at the time and still believe it to be "an extraordinary allegation". 

"It would be quite extraordinary if it turned out that such a thing had happened," he added.