Theresa May opens door to soft Brexit in Corbyn letter

THERESA May last night appeared to open the door to a soft-Brexit agreement with Jeremy Corbyn’s Labour if her deal is blocked by the British parliament.

The British prime minister told opposition leader Mr Corbyn his demand for Britain to stay in the EU’s Customs Union would hamper free trade deals – but stopped short of ruling it out.

And Mrs May said the Tories were ‘prepared to commit’ to new laws to protect workers’ rights after Brexit – a key demand of Labour and the unions.

In a letter to Mr Corbyn, she confirmed ministers are ‘examining opportunities’ to pour millions into deprived Brexit-voting Labour constituencies.

The move is seen as vital in winning the votes of Labour MPs for her deal.

Mrs May also proposed further talks with Mr Corbyn and his team in the coming days to discuss issues around the Customs Union, the Single Market and ‘alternative arrangements’ to the backstop. Her letter came hours after she was warned she could face a cabinet walkout if she changes tack to pursue a Customs Union.

Tory treasury chief secretary Liz Truss and fellow cabinet ministers Liam Fox, Andrea Leadsom and Penny Mordaunt are also said to be implacably opposed to any shift towards a Customs Union. Downing Street last night insisted Mrs May remained committed to securing an ‘independent trade policy’ after Brexit, which would be incompatible with a Customs Union.

A source said: ‘We are very clear that in order to have trade deals, which are a central part of the Brexit deal, you cannot be a member of a Customs Union.’