Brexit: Theresa May blocked plan to guarantee rights of EU citizens in the UK immediately after referendum

'All his Cabinet agreed with that unilateral offer, except his Home Secretary, Mrs May, who insisted on blocking it'

Theresa May single-handedly blocked a plan to immediately guarantee the future rights of the 3m EU citizens in the UK last summer, George Osborne has revealed.

The then-Home Secretary was the only member of the Cabinet to oppose David Cameron, who “wanted to reassure EU citizens they would be allowed to stay”, after Brexit.

“All his Cabinet agreed with that unilateral offer, except his Home Secretary, Mrs May, who insisted on blocking it,” revealed the Evening Standard, now edited by Mr Osborne.

The proposal was discussed “in the days immediately after the referendum” exactly one year ago, said the newspaper.

Ms May has denied the accusation and said that "was certainly not my recollection" of events.

But Tom Brake, the Liberal Democrat Brexit spokesman, said: "It is a badge of shame that Theresa May blocked attempts to guarantee the rights of EU nationals after the referendum.

"It shows how cold and heartless she is. "Now that mean-spirited decision is coming back to haunt her as we see an exodus of skilled EU workers, from nurses to academics.”

The revelation comes after EU citizens in the UK protested that Ms May’s “generous” offer – outlined last night - will leave them with less rights after Brexit than “British jam”.

The Prime Minister’s proposals also ran into trouble from other EU leaders who warned of “open questions” and a “long, long way to go” before agreement.

Ms May was forced to defend her position and said she wants to give EU citizens in the UK "certainty" but the details of the arrangement would be outlined during the negotiation process.

Since reaching No 10, Ms May has faced down pleas to act unilaterally, insisting she would only offer guarantees to EU citizens if British ex-pats in the EU were given the same protection.

The stance fitted with her hardline approach to immigration, as she vowed tough new controls would be a “red line” in the Brexit negotiations.

Earlier this year, MPs threw out a Lords amendment requiring Britain to act immediately after the Prime Minister promised worried Tory backbenchers she would do exactly that.

Last night, she told a Brussels summit that she was willing to give the 3m EU citizens in Britain a new “settled status”, allowing them to stay if they have lived here for five years.

People gaining it would secure rights on healthcare, education and benefits broadly similar to those enjoyed by EU citizens in the UK currently.

But Ms May refused to reveal the cut-off date after which new arrivals will no longer be guaranteed the status, leaving many people uncertain of their UK residency.

And, crucially, she has vowed to fight the EU’s demand that future rights must be guaranteed by the European Court of Justice (ECJ) – a certain flashpoint over the months to come.

The 3million group, which represents EU citizens in the UK, described the offer as “neither fair or really serious”.

“We really fear the loss of access to the ECJ,” said Anne-Laure Donskoy, a founding member.

Austria's Chancellor, Christian Kern, warned: “A lot of citizens of Europe are concerned and are not covered with the proposals of Ms May, so there is a long, long way to go for the negotiations.”

In the Standard editorial, Mr Osborne criticised Ms May for continuing to make a threat she could not carry out, by linking EU citizens here to the fate of British residents in the EU.

“Once again, this morning, millions of families wake up among us not knowing whether they will be allowed to remain in the country where they have chosen to make their lives,” it said.

“There has to be a very strong reason of national interest even to contemplate causing such upset. There isn’t.”

In the absence of a Tory majority, it “seems likely that an opposition motion to grant EU citizens the right to remain unilaterally could be carried”.