...And PM walks into the guns of EU rebels tomorrow

DAVID CAMERON faces a Commons revolt this week by Eurosceptic Tory MPs demanding that the Government blocks the European Union from using its spending might to influence the EU referendum.

When the Prime Minister returns to the Commons tomorrow for the first time since the summer break, he will walk straight into a rebel ambush, as MPs debate and vote on the European Referendum Bill.

Tory MP Steve Baker has placed an amendment to the Bill, which sets out the terms for the vote on this country’s future in the EU, preventing ‘the EU institutions, including the Commission, from direct campaigning’.

The move, which is expected to be supported by dozens of his colleagues, comes as Lord Lamont calls in today’s Mail on Sunday for a ‘level playing field’ in the referendum.

The former Chancellor argues that even without the EU using its funds to influence the result, the current rules on election spending mean that the pro-Brussels camp will have a war chest of £25million, while those wanting to leave the EU will be able to draw on £11million.

‘To many this will look worse than unfair – it will look like a stitch-up,’ Lord Lamont writes. ‘Even if the playing field is levelled in respect to how much each campaign can spend, there will still be one body that finds itself subject to no spending or campaigning restrictions, despite its key role in the campaign.

‘The ability of the EU to use its budgets to affect the result of the vote, either directly or through intermediaries, is a serious challenge to the referendum process.’

The Tory rebels have already forced the Government into a climbdown over the so-called ‘purdah’ rules, which normally impose a ban on Ministers publishing relevant material in the 28 days before the referendum, which insiders expect to be held next autumn.

Mr Cameron had claimed the rules should be suspended to allow departments to deal with EU matters, but the sceptics argued that the proEU campaign would benefit from the use of the ‘machinery of government’ by the establishment.

Last week Ministers accepted the purdah rules should apply, albeit with some restrictions to allow Ministers to conduct EU business.

Sources among the rebel MPs say they are ‘still not happy’ and will continue to harry the Government, including voting with Labour if necessary.

Last night, Mr Baker, the Wycombe MP, said that the need for restrictions to be placed on the EU during a referendum campaign had been demonstrated by the vote on the Lisbon Treaty in Ireland in 2009 and Croatia’s referendum on membership in 2012, when European institutions were accused of disseminating pro-Brussels propaganda.

Although British Ministers do not have jurisdiction over the European institutions, it is understood that if the amendment was passed, ‘out’ campaigners would be able to take out injunctions against media outlets which repeated information sent out by Brussels.

According to Business for Britain, a group which campaigns for a renegotiation of the UK’s relationship with Brussels, the EU spent more than £2.8billion last year on budgets which included promotional spending. More than £10million was spent subsidising TV shows which promote its own aims.

The Conservatives For Britain group, which was founded by Mr Baker, has asked its 115 MPs to back the amendment.