Brexit: Cabinet ministers clash over second referendum as chancellor says new vote ‘perfectly credible’

But health secretary says ministers must not ‘challenge the result of the referendum with another referendum’

Cabinet ministers have openly clashed over the prospect of a new Brexit referendum after chancellor Philip Hammond suggested a fresh vote was a “perfectly credible” proposal.

Health secretary Matt Hancock set himself against his cabinet colleague, saying he was “very, very strongly against” a Final Say vote to break the Brexit deadlock.

Mr Hammond risked Brexiteer fury when he said there was a “perfectly credible” case for a new referendum and signalled support for a move towards a softer Brexit.

Earlier this week, Theresa May appealed to Jeremy Corbyn for last-ditch talks to break the Brexit deadlock, which the Labour leader described as “useful but inconclusive”.

Meanwhile, a backbench bill to avert the risk of a no-deal exit cleared its Commons hurdles by only one vote in a knife-edge parliamentary clash on Wednesday night.

Mr Hancock, who has been tipped as a possible candidate to replace Ms May, said the chances of the UK crashing out were now “very unlikely”, as he suggested he could accept a customs union compromise.

But he dismissed the chancellor’s comments, telling BBC Radio 4’s Today programme: “I have argued many, many times that it would be divisive. It wouldn’t be decisive. It doesn’t help us leave the European Union before the European elections.

“So I am very, very strongly against it.”

Asked if he would rule it out, the cabinet minister said: “I am against it and my personal view is it is wrong and it doesn’t help us to deliver Brexit.

“The point here is to respect the result of a referendum, not to challenge the result of the referendum with another referendum.”

As the government geared up for another day of Brexit talks with Labour, Mr Hancock said while he “profoundly” disagreed with Mr Corbyn on economic and security matters, the only way to achieve Brexit was by seeking Labour votes.

He signalled he could compromise on a customs union, adding: “I would much prefer the prime minister’s deal to a customs union, to be frank.

“I want to deliver Brexit, I have spoken about the problems of a customs union and I don’t think it’s as good for the country. But I also want to deliver Brexit.”

Mr Hammond had stoked Brexiteer fears that the government was preparing for a softer exit from the EU.

Asked whether a customs union was a price worth paying for a deal with Labour, he told ITV’s Peston: “If that’s what we have to do then let’s look at that.”

On a fresh referendum, he said: “It’s a perfectly credible proposition, some ideas have been put forward that are not deliverable, they’re not negotiable.

“But the confirmatory referendum idea, a lot of people will disagree with it, I’m not sure there’s a majority in parliament for it, but it’s a perfectly credible proposition and it deserves to be tested in parliament.”

European Research Group deputy chair Steve Baker said the Tory leadership was “out of step with members and, I think, the country”, while most Tory MPs would not accept a softer Brexit.

“If we find a majority of Conservative MPs voting against the policy, it’s not us who will be moving on,” he warned.

Meanwhile, legislation to prevent a no-deal Brexit next week will now be fast-tracked through the House of Lords, after MPs approved the plan by just one vote.