Theresa May still hopes to salvage key parts of her Brexit blueprint despite MPs voting against it by 432 to 202, it emerged tonight.
Downing Street insisted it could still form the “basis” for a future deal.
After the crushing defeat by 230, a No10 spokesman said: “We are obviously disappointed.”
But he rejected claims that Mrs May’s Brexit proposals were now dead, stating: “The deal remains.”
But first the Prime Minister must survive a vote of no confidence in the Government which is set to take place tomorrow evening.
If she wins, Mrs May will then reach out to senior parliamentarians to see if she can find common ground for a deal.
Follow the latest Brexit developments LIVE
But No10 said her “principles” for the talks included that Britain must have an independent trade policy after Brexit, as well as protecting the union, and taking back control of laws, money and borders.
The emphasis on an independent trade policy appeared to rule out a deal with Jeremy Corbyn who backs a customs union with the EU.
Downing Street also stopped short of saying that the Government would be willing to negotiate with him but said talks would take place with MPs in a “constructive spirit”.
If tabled tonight, which is expected, the debate on the vote of no confidence will start shortly after Prime Minister’s Questions with the vote expected at 7pm.
If Mrs May loses, then she, Mr Corbyn or another parliamentarian would have 14 days to show that they can command the confidence of the Commmons, or there would be a General Election.
She was still refusing to support demands from Cabinet ministers for “indicative” votes on Brexit options or to accept that Brexit may have to be delayed beyond March 29.
She also made clear that she wants to avoid no deal, with the Leave campaign having insisted to the public that the UK could quit the EU in an orderly way.
