New Brexit referendum better than no deal, senior Tory MP Amber Rudd says

Ex-home secretary warns UK is 'in completely uncharted territory', saying: 'I think a people’s vote could be the result of an impasse'

Amber Rudd has become the most senior Conservative to back a fresh referendum that could stop Brexit, rather than crashing out of the EU without a deal.

The former home secretary warned the UK was “in completely uncharted territory”, saying: “I think a people’s vote could be the result of an impasse.”

Asked if she would back that vote if it was the only alternative to leaving with no agreement, she replied: “Is that preferable to no deal? Absolutely.”

The comments are the strongest evidence yet that moderate Tories are flexing their muscles to prevent Theresa May carrying out her threat to allow the UK to crash out of the EU if necessary.

Some senior cabinet ministers are also believed to be alarmed that the UK could end up facing a no-deal Brexit “by accident” and want the prime minister to adopt looser, Canada-style trade proposals as a fallback.

Speaking on ITV’s Peston programme, Ms Rudd warned hardline anti-Brexit Tory MPs that continuing to obstruct Ms May’s efforts to reach an agreement in Brussels could backfire on them.

“I don’t think no deal will happen,” she said, arguing a Norway-style EEA deal – effectively keeping the UK in the EU single market – remained a possibility.

And she said: “It would be ironic indeed if we got a people’s vote because the more Brexity people in my party were unable to support the prime minister in her negotiated settlement and then they might not even get their Brexit.

“So I think they have to think very carefully about the consequences of not supporting a negotiated settlement.”

The Independent has launched its Final Say campaign, to give the British people the crucial decision on any Brexit deal. More than 835,000 people have signed our petition.

The former home secretary, who resigned over the Windrush scandal, put herself among “about 40” Tories opposed to a Canada-type deal, more than enough to defeat it, in alliance with opposition parties.

She said: “There are so many reasons a Canada-type deal doesn’t work, starting with the Irish border, going on to manufacturing, that I think we can make those arguments.”

The prime minister has continued to ramp up the threat of a no-deal Brexit as the only alternative to her Chequers proposals – which have been rejected outright by EU leaders.

Last month, Nick Boles, a former Tory minister, warned party hardliners that their “dream” of a no-deal Brexit would be blocked by at least 40 fellow Conservatives.

And The Independent revealed in June that they could use a “humble address” – the tactic Labour used to force the government to release Brexit economic assessments – to prevent it.

Meanwhile, Barry Gardiner, the shadow trade secretary, told the same programme that Jeremy Corbyn’s conference speech did amount to Labour “bending” its red lines on Brexit.

In the address, the Labour leader said he would back a deal brought back by the prime minister if it kept the UK in a customs union and protected jobs, workers’ rights and environmental standards.

Mr Corbyn did not mention the “six tests” previously set out by Sir Keir Starmer, the shadow Brexit secretary, which demanded the “exact same benefits” as the test for backing an agreement.

Mr Gardiner said: “All of us don’t want the no deal that will take us off the edge of that cliff.

“And if it means compromising, if it means you bending your red line to give us a customs union, we’re prepared to bend our red lines to give, to give this a deal.”