Ministers are “up for the fight” to prevent the UK crashing out of the EU without a deal, a senior Tory has warned the prime minister, saying a disorderly exit is “not something we can contemplate”.
Tobias Ellwood, the defence minister, said he would fight to prevent a no-deal Brexit taking place – either on 29 March or after an extension.
His warning came after it was revealed the Government had paid £33m to Eurotunnel to settle a legal action over the award of contracts to ferry firms, including one that had no ships.
Eurotunnel had accused ministers of awarding the contracts through a “secretive and flawed procurement process”.
“We’re going to stay, we want to be the party, we don’t want to be pushed out in any sense,” Mr Ellwood told the BBC’s Nick Robinson in a podcast.
“This moderate view that we’re trying to defend has to be where we go in the future or we will not win the next general election.”
Meanwhile, opposition to Theresa May’s Brexit deal appeared to be starting to soften.
Top Brexiteer Dominic Raab signalled his position was moving, saying Eurosceptics were not “dogmatic” over the divisive Irish backstop. He added: “The substance rather than the vehicle and means is what matters. We need to see substantial legally binding changes.”
Jacob Rees-Mogg, who chairs the European Research Group of Tory Brexiteers, also suggested he could be happy with an appendix to Ms May’s deal.
The comments offer a glimmer of hope to the prime minister ahead of a critical vote on her deal on 12 March, and come after she opened the door to a short delay to Britain’s departure from the EU.
To read how events developed on Friday, please see what was our live coverage below.
Eurotunnel settles Brexit ferry contract dispute for £33m
Eurotunnel has dropped its legal claim against the government over "secretive" post-Brexit ferry contracts after ministers agreed to pay out £33m to the firm. Chris Grayling's department ended up in hot water after it handed out lucrative contracts to increase cross-Channel capacity in the event of a no-deal Brexit to three firms - including one company that did not have anyAs part of the agreement, Eurotunnel has also withdrawn its legal claim against the government, protecting the vital freight capacity that the government has purchased from DFDS and Brittany Ferries.
This freight capacity will help ensure the continued supply in a no deal scenario of crucial medicines, medical supplies and veterinary medicines.
Theresa May caved in to pressure from Cabinet ministers including Amber Rudd, David Gauke and Greg Clark and agreed to offer MPs the chance to vote on delaying Brexit if no deal is in place by March 29.
The prime minister promised to bring her Brexit deal back to the Commons for another "meaningful vote" by 12 March.
If that fails, MPs will then get to vote on whether they want a no-deal Brexit and, if they do not, then they can call on Mrs May to seek an extension to Article 50.
The move may have prevented a Cabinet revolt, but more than 100 Conservatives failed to support the plan in a Commons vote and George Eustice quit as environment minister in protest at the prospect of an extension which could be a "final humiliation" for Britain.
Meanwhile Labour's alternative Brexit plan was rejected by the Commons, meaning Jeremy Corbyn's party will now put forward or support an amendment calling for a second referendum.
What is going to happen next?
The Government will continue negotiations in Brussels aimed at securing changes to the Northern Ireland backstop as it tries to get a Brexit deal that can make it through the Commons.
There will be another showdown on the deal by March 12 at the latest, as Mrs May seeks to reverse the humiliating 230-vote defeat suffered in January.
If the deal is rejected again, MPs will vote by March 13 at the latest on whether they want a no-deal departure from the EU.
Assuming they do not, then MPs will be asked if they want to seek a "short, limited extension" to Article 50. If they do, this would require the consent of the other 27 European Union states.
Mrs May stressed she did not want an extension and warned that it did not rule out the prospect of a no-deal Brexit, but would instead risk creating a "much sharper cliff edge" in a few months.
The agreement with Eurotunnel secures the Government's additional freight capacity, helping ensure that the NHS has essential medicines in the event of a no deal Brexit.While it is disappointing that Eurotunnel chose to take legal action on contracts in place to ensure the smooth supply of vital medicines, I am pleased that this agreement will ensure the Channel Tunnel is ready for a post-Brexit world."
An NHS ambulance trust has drawn up plans in case a no-deal Brexit holds up delivery of new emergency vehicles from Germany.
The North East Ambulance Service (NEAS), which covers an area from Berwick-upon-Tweed to the North Yorkshire border, has placed an order for 44 modified Mercedes vehicles that are converted by a German firm.
These have been bought to replace 31 vehicles coming to the end of their seven-year lifespan, and another 13 ordered for the new 100 new paramedics it has recruited to meet new, lower emergency response times.
The order for the emergency response vehicles is due to be completed by the summer, after the date the UK could leave the EU without a deal.
Should no-deal hold up the supply of the new vehicles, NEAS said it will have to extend the life of its current ambulances, something a spokesman said was "not an ideal situation".
Spain looks to guarantee British expats' rights with contingency plan
Some interesting news from Madrid this afternoon, where Spanish foreign minister Josep Borrell says the country will aim to protect the rights of British citizens living there in the event of a no-deal Brexit.
Spanish newspaper El Pais earlier said Spain planned to grant residency to hundreds of thousands of British citizens if the UK left the European Union without a deal.
Spain is home to the largest British expat community in the EU, with around 300,000 UK citizens currently resident in the country.
One of the difficulties she’s had is that she’s tried to take every part of the party with her at different points…it would have been better to be clearer that not everybody in the party was going to get one they wanted.I think one of the reasons we are where we are, is that many ministers - and I would include Theresa in this, struggled to see any economic upside to Brexit. They see it as a damage limitation exercise.If you see it in that way (as damage limitation) then inevitably you’re not going to be prepared to take the steps that would enable you to fully realise the economic opportunities of leaving."
Post-Brexit US trade demands would bring in chlorinated chicken and ramp up NHS drug costs, MPs warn
The IndependentTrump’s 'negotiating objectives' would also rip up restrictions on personal data leaving country and on sale of products with asbestos, critics sayIn a monthly survey, financial information firm IHS Markit says its main purchasing managers' index — a broad gauge of activity in the sector — fell to a four-month low 52.0 in February from 52.6 the previous month.
Though that's above the 50 threshold that marks expansion, the survey said Friday that the growth was largely due to firms implementing "plans to mitigate potential Brexit-related disruptions." This has involved the stockpiling raw materials, for example.
James Smith, an economist at ING, says the survey shows that the sector is still narrowly expanding, "but make no mistake, the underlying details make it clear that this is only because firms are building up inventory ahead of Brexit."
A proposed post-Brexit trade deal with the US could allow big American companies to "run riot" in the NHS, campaigners have warned.
Donald Trump's administration has published negotiating objectives for a deal which include demands for the UK to provide full market access for US drug firms and ensure that state institutions - such as the NHS - do not discriminate against American companies when purchasing goods and services.
The document also states the US will be seeking "comprehensive market access" for its agricultural products through the reduction or removal of tariffs and the elimination of "unwarranted barriers" to food and drink imports.
The Department for International Trade welcomed the document, published by the office of US trade representative Robert Lighthizer, as a sign that Washington is keen to start talks soon after Brexit.
Liam Fox is being mocked for spending £107,000 on a podcast that only 8,400 people downloaded
Six-episode series designed to encourage British firms to export after Brexit
Nigel Farage is charging Leave voters £50 to join him on his Brexit betrayal march
Fee covers accommodation, dinner and an official kit for rally that culminates on the day Britain leaves EUThe government continues to chase the impossible with its tone deaf negotiating strategy.The EU's reaction to this demand for backstop changes has been clear for a while. The government knows this, meaning it's deliberately running down the clock. Meanwhile, businesses and communities around the country continue to suffer from the Brexit uncertainty.This cannot continue. Theresa May is embarrassing the country internationally. We need to end this nightmare through a Final Say with the option to stay in the EU."
