Labour confirms Remain can be party's choice in new Brexit referendum after split between top figures

Labour conference witnessed a public split between Sir Keir Starmer and John McDonnell over party policy

Labour is embroiled in a row over the party’s approach to a Final Say Brexit referendum, following a split between two of the shadow cabinet’s most senior figures.

Sir Keir Starmer, the party’s Brexit spokesman, was forced to confirm that remaining in the EU will be a potential option in a future referendum backed by Labour after John McDonnell, the shadow chancellor, ruled the idea out.

Amid a backlash Mr McDonnell rowed back on his comments, and later conceded at a meeting at the party’s conference in Liverpool that Labour could still back a new vote that would see the party stay in the EU.

It comes as Sir Keir will tell Labour conference on Tuesday that the party is set to oppose the deal Theresa May brings back from Brussels, having determined that it cannot meet his “six tests”.

Another shadow cabinet minister, Barry Gardiner, also broke ranks to say that the idea the party will be able to secure a general election if Ms May’s plans fall apart was “looney tunes territory”.

If the prime minister’s Brexit plans are rejected by parliament, and no election is forthcoming, then Labour’s new policy – arduously negotiated by Mr Starmer this week and to be approved on Tuesday – would see the party committed to a new Brexit referendum.

It follows The Independent’s Final Say campaign for a people’s vote on the outcome of Brexit, which has been backed by more than 820,000 people in a petition.

Mr McDonnell’s U-turn came at a fringe meeting where he was asked what options Labour would allow on the ballot paper, under its new policy on a further Brexit referendum.

He said: “If [Ms May’s deal] collapses then we are into a completely different ball game and Keir is right we are keeping all the options on the table.”

Pushed at the meeting as to whether he meant that Remain could be on the ballot paper in a referendum, Mr McDonnell commented: “That’s what he said.”

Setting out his personal views, and underlining the future battles likely to be fought over the issue, he went on: “The issue there is, we’re saying respect the past referendum, and I just tell you, we have to be careful what we wish for here.”

It marked a change in tone from an earlier interview he had given on Brexit in which he said that said Labour would “go for a people’s vote” on leaving the EU, but any referendum would not include an option to stay in the bloc.

It came after an official Labour meeting agreed that on Tuesday the party would vote on whether to accept a policy stating that if the prime minister’s Brexit plans collapse, but the Tories refuse to call an election, “Labour must support all options remaining on the table including a public vote”.

Earlier in the day, Sir Keir had waded in to clear up the confusion caused by Mr McDonnell’s initial comments, telling The Independent: “The idea is to retain flexibility, the motion doesn’t rule out Remain, it doesn’t tie us to any position on what should be in any future vote.”

The shadow cabinet minister, apparently reacting to anger in the wake of Mr McDonnell’s words, made similar comments to delegates at a fringe meeting on Monday.

People’s vote supporters had condemned Mr McDonnell’s suggestion that a new referendum should exclude a Remain option as “farcical”.

David Lammy, a supporter of the People’s Vote campaign, said: “Labour members support a People’s Vote by almost nine to one – 90 per cent of Labour members want to stay in the EU.

“They did not do this to be offered a farcical referendum on no deal or a bad deal. It absolutely must include the right to stay in the EU.”

On Tuesday Sir Keir will tell conference Labour is preparing to vote against Theresa May’s Brexit deal, as new party analysis indicated her Chequers proposals cannot meet Labour’s six tests.

He will also commit Labour to vote down a “blind Brexit” that risks the UK jumping “into the unknown” – an increasing danger amid claims that any withdrawal agreed by Ms May will necessarily have to be vague so that she can get her fractious backbenchers to vote for it.

Sir Keir will say: “A Tory civil war that has gone on for years, now threatens our future prosperity. The party that once promised that it would fix the roof while the sun was shining is now intent on burning the whole house down.

“So, I’ve got a message for the Prime Minister. ‘If your party wants to tear itself apart, that’s fine, but you’re not taking our country with you.’”