Brexit: Fresh fury at Downing Street plan amid claims it could prevent UK-US trade deal

Theresa May accused of acting 'directly contrary' to her promises as Downing Street admits latest proposals would mean UK could not 'accommodate' US trade demands

Theresa May’s latest Brexit plans have been thrown into fresh chaos amid claims they will make it all but impossible for the UK to negotiate a trade deal with the US.

Documents circulated to cabinet ministers ahead of a crunch meeting at Chequers reportedly admit that Downing Street's new proposals would “not allow the UK to accommodate” a likely US prerequisite for a deal.

The prime minister hopes to use the cabinet meeting at her countryside retreat on Friday to persuade warring ministers to unite behind her latest plan, but the latest revelations are likely to provoke anger from Brexiteers.

Downing Street played down the row, saying it was “categorically untrue” to suggest the plan would make a trade deal with the US impossible.

However, a spokesperson refused to be drawn on whether it would make such an agreement less likely.

Under the plan drawn up by senior No 10 officials, the UK would effectively remain in the single market for goods by maintaining the same standards as the EU.

Together with an agreement on customs, officials hope this would remove the need for a hard border in Northern Ireland, as goods would not need to be checked.

However, details of the proposals sent to cabinet ministers ahead of the Chequers meeting reportedly admit that maintaining the EU's standards on goods “would not allow the UK to accommodate a likely ask from the US in a future trade deal”, which is that US’s ‘array of standards’ be accepted by Britain.

The admission is likely to prompt major concerns among Brexiteers, who have insisted that any agreement with the EU must not prevent Britain forging new trade deals with other countries.

Jacob Rees-Mogg, who chairs the European Research Group of Eurosceptic Tory MPs, said: "If this correct this is not Brexit. This common rulebook means that we are essentially a vassal state. This would be directly contrary to the prime minister's own assurances. The prime minister should imitate Mr Gove and tear up this paper."

A Downing Street spokesperson said it was “categorically untrue” to suggest the proposals would make a trade deal with the US impossible.

They said: “The prime minister has always been clear that we will seek a comprehensive and ambitious trade deal with the US that reflects the strengths of our trading and investment relationship.

"The president himself has always made it clear that he is keen to sit down and talk with the UK about that. The president and prime minister will have an opportunity to talk about it next week.

"It is categorically untrue to suggest that we will not be able to strike a trade deal with the US."

According to The Spectator, the Downing Street plan would see the UK “maintain a common rulebook for all goods including agri-food’.

This would involve Britain making ‘an upfront choice to commit by treaty to ongoing harmonisation with EU rules on goods’.

On services, however, the UK would be free to diverge from EU standards.

The EU has repeatedly said that remaining in part of the single market is not an option, raising fears that Brussels will swiftly dismiss the UK’s latest proposals.

David Davis, the Brexit secretary, is also said to have told the prime minister the plan is unworkable.

Theresa May travelled to Berlin on Thursday in a bid to convince Angela Merkel, the German chancellor, to support behind the plan. A No 10 spokesperson refused to be drawn on the nature of the discussions.