Theresa May is to travel to Brussels on Wednesday for crunch talks with the European Commission, as Jean-Claude Juncker said a breakthrough is in “God’s hands’.
It came after the prime minister met with her cabinet amid reports ministers told Ms May to stop using a no-deal scenario as a threat in the ongoing Brexit negotiations.
And it followed the decision by seven MPs to quit Labour on Monday – the biggest schism in the party since the formation of the Social Democratic Party (SDP) in the 1980s.
On Tuesday members of the European Research Group (ERG) also met with the PM to discuss the future of the so-called Malthouse compromise arrangement amid speculation it had been killed off.
The plan, named for MP Kit Malthouse, would see the backstop dropped and the transition period extended in exchange for the UK paying some of the financial settlement it owes Brussels.
Jacob Rees-Mogg and Steve Baker, of the ERG, said in a joint statement that the compromise was “alive and kicking”. They added: “We look forward to further developments.”
Brexit secretary Stephen Barclay had previously briefed the cabinet on his talks with Michel Barnier in Brussels on Monday, at which the EU chief negotiator voiced concerns about the viability of the Malthouse plan.
Mr Barclay is also expected to make another visit to Brussels later in the week as Britain seeks the bloc’s approval for changes to the backstop – the insurance arrangement designed to avoid a hard Irish border after Brexit by keeping the UK in a customs union until a wider trade deal is agreed.
Late on Tuesday, Mr Barnier tweeted that there was a “clear and strong unity of EU27 to preserve the withdrawal agreement in all its dimensions, including on Ireland”.
See below how we reported the events live
Corbyn faces major crisis amid threat of further Labour resignations
Jeremy Corbyn faces a historic Labour rupture after being warned that more MPs are ready to follow the seven who dramatically quit his party on Monday.
The leader publicly appealed for unity while his supporters launched savage attacks on the MPs, branding them “cowards”, “traitors” and “splitters” and demanding they give up their seats.
But as the crisis deepened, deputy leader Tom Watson said other MPs are also considering leaving Labour, a party he admitted he sometimes no longer recognises, amid visceral anger over antisemitism, Brexit and Mr Corbyn’s leadership.
Former Militant member Derek Hatton readmitted to Labour 34 years after expulsion
Former member of the left-wing Miltant faction and deputy leader of Liverpoolcouncil, Derek Hatton, has been readmitted to the Labour Party – 34 years after he was expelled.
Reports of his approval back into Labour’s ranks came after seven MPs resigned from the party on Monday – the biggest schism in the party since the formation of the Social Democratic Party (SDP) in the 1980s.
Mr Hatton was thrown out of the party by Labour’s former leader Neil Kinnock, for belonging to the Militant faction and for overseeing an illegal “deficit” budget in protest at Margaret Thatcher‘s Conservative government.
Mr Barclay was said to have had a "productive" discussion with the EU's chief negotiator Michel Barnier in the Belgian capital on Monday.
However, it appeared that they were no closer to resolving the fraught issue of the backstop - intended to ensure there is no hard border on the island of Ireland - which remains the main stumbling block to an agreement.
Who are the new Independent Group and what do they stand for?
In what is being seen as the most significant split in British politics since the breakaway of the Social Democratic Party in the 1980s, a group of seven Labour MPs have announced they have resigned from the party.
They will now sit as an “Independent Group” as they appeal to MPs from all parties to “leave the old tribal politics behind”.
Jeremy Corbyn said he was “disappointed” by the move and shadow foreign secretary Emily Thornberry said the party “should not and will not be distracted and divided” by the news.
Asked when the group of MPs could evolve into a new centre party with a name and more members, Mr Umunna said: "I would like to see us move as quickly as possible and certainly by the end of the year, but that's my personal view."
He added: "There needs to be an alternative, so that's perfectly possible. But I don't get to determine this."
Ex-Labour MP apologises for 'misspeaking' when talking about race live on TV
Former Labour MP Angela Smith has apologised and said she “misspoke” during a discussion about race.
The member for Penistone and Stocksbridge was taking part in a discussion on Politics Live about antisemitism and racism in politics, when she appeared to describe BAME people as having a "funny tinge".
“The recent history of the party I’ve just left suggests that it’s not just about being black or a funny tin- ... you know, different - from the BME community,” she said.
Her comment caused outcry online and the politician posted a video of herself apologising just hours later.
“I have seen the clip from Politics Live,” she said. ”I’m very sorry about any offence caused and I am very upset that I misspoke so badly."
But he played down suggestions that as many as 36 Labour MPs had been considering a split.
"I don't think there is that scale, but the key issue for us - and it was made clear at the Parliamentary Labour Party, Tom Watson said it and others - the Labour leadership, and I'm part of that, we need to keep listening, bring people in, talk to them," he said.
MPs urge government to redraft new domestic abuse bill so it includes Northern Ireland
MPs’ from a range of political parties, campaigners and academics are calling for the government to extend the new landmark Domestic Abuse Bill to Northern Ireland.
The draft legislation introduces the first ever statutory definition of domestic abuse to include economic abuse and controlling and manipulative behaviour that is not physical.
But the bill will not apply to Northern Ireland – as well as excluding migrant women.
Tory rebel Sarah Wollaston warns of 'Blukip' activists in her own party amid speculation over new resignations
Pro-EU Tory Sarah Wollaston has warned "Blukip" activists in her own party risk alienating moderate voters amid speculation over possible defections to a new group of independent MPs.
Dr Wollaston warned "there will be nothing left at all to appeal to moderate centre ground voters", as she accused her party of shifting towards a hardline stance on Brexit.
The Conservative rebel is reportedly facing a deselection vote from her local association after defying the government to support a final say referendum.
It comes after seven Labour MPs dramatically resigned on Monday in protest at Jeremy Corbyn's handling of Brexit and complaints of antisemitism in the party.
A former EU commissioner Jose Manuel Barroso has said the most likely scenario now is that the UK will delay Brexit - and not leave on 29 March.
"I think the most likely scenario is not to do that in March this year," he said according to Reuters. "We need more...preparations."
“Even if there was a positive deal now, from a practical point of view, it’s obvious that everything is not ready. So I think the right thing to do is to have some extension, and I believe that if the UK demands an extension of Article 50, European Union countries will naturally accept it.”
Opinion: How Labour rebels just helped Theresa May’s chances of remaining prime minister
Chuka Umunna and Chris Leslie were emphatic at the news conference that they would not contemplate helping to make Corbyn prime minister, writes political commentator John Rentoul.
Brexit food shortages could see people forced to eat ‘tons of British leeks’
Food shortages caused by Brexit could lead to people being forced to eat “tons of British leeks”, a supermarket boss has said.
Industry experts have repeatedly warned that if Britain leaves the European Union without a deal in place there will be an increase in food prices and a shortage of fresh produce.
As 29 March – the date the UK is expected depart from the EU – fast approaches, supermarkets are stockpiling products and testing new routes to cope with expected disruption at the borders.
Business secretary Greg Clark is no addressing a manufacturing conference in central London. He described the announcement from the Japanese company, Honda, as a "bitter blow".
Here is the company's announcement from Monday:
Brexit breakthrough is 'in god's hands', EU president Juncker says ahead of talks with Theresa May
A Brexit breakthrough is “in God’s hands”, Jean-Claude Juncker has said – after Brussels once again rebuffed UK pleas to renegotiate the deal struck by Theresa May last year.
In an interview with a German newspaper the EU Commission president said an extension of Article 50 was an option to avoid a no-deal.
“When it comes to Brexit, it is like being before the courts or on the high seas; we are in God’s hands,” he told Stuttgart Zeitung.
“And we can never quite be sure when God will take the matter in hand.”
Does the Labour split make a fresh Brexit referendum more likely?
Analysis: The rebel MPs were unwilling to go along with a referendum campaign that accepted the Labour leadership’s ambiguity over a new vote, as Joe Watts explains
