Brexit vote result - LIVE: Cabinet ministers rebel as Theresa May's bid to keep no-deal Brexit on the table ends in yet another humiliating defeat
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Theresa May has suffered a humiliating defeat after MPs voted to completely take the option of a no-deal Brexit off the table.
MPs voted by 312 votes to 308 in favour of an amendment that was stronger than the government's own motion in its opposition to a no-deal outcome.
Ms May's motion said the Commons "declines to approve" leaving without a deal on March 29, but said the only way to avoid this is to pass an agreement. The amendment passed by MPs removed this caveat and simply said the Commons "rejects" a no-deal Brexit.
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Earlier, chancellor Philip Hammond used his Spring Statement to downgrade growth forecasts and warn MPs that uncertainty over Brexit was damaging the economy.
It came after ministers revealed plans to scrap tariffs in the event of the UK crashing out of the European Union without a deal as MPs prepare to vote on a no-deal Brexit.
Under a temporary and unilateral regime, EU goods arriving from the Republic of Ireland and remaining in Northern Ireland will not be subject to tariffs – a prospect likely to increase the risk UK jobs would be lost. Charges will however be payable on goods moving from the EU into the rest of the UK via Northern Ireland under a schedule of rates also released today.
Tariffs in the event of a no-deal Brexit
Show all 15Shadow business secretary Rebecca Long Bailey told BBC Radio 4's Today: "Now I think it's the opportunity for Parliament to set the agenda and take control because we have a Government now which isn't in control."
Asked if Labour would push for another motion of no confidence in the Prime Minister she said it was "something that we may consider in the future".
Pressed on Labour's position on a second referendum she said: "We have not ruled out a People's Vote but our priority is securing a deal."
David Cameron has told Sky News that Tory MPs need to take no-deal off the table.
"What needs to happen next is to rule out no-deal, that would be a disaster for our country and to seek an extension.
I'm sure that's what's going to happen next."
Former Brexit minister Steve Baker, a key figure in the European Research Group, said the new version of the Malthouse Compromise would "throw three safety nets" around leaving the EU without a Withdrawal Agreement.
He told BBC Radio 4's Today programme that plan A remained putting "alternative arrangements" in place to replace the backstop in the Withdrawal Agreement.
The second element was to "buy" an implementation period "so they get about £10 billion a year and we all get a transition arrangement".
The third was offering "standstill" arrangements with the EU to provide a third way to have a smooth exit.
The EU's Michel Barnier has repeatedly stressed that a transition arrangement could only be offered if there was a formal Withdrawal Agreement, but Mr Baker said "negotiability is a dynamic concept".
The rejection of Theresa May's Brexit deal has caused dismay among many British businesses, but it also creates more unwelcome uncertainty for a country that relies significantly on UK trade - Australia.
Britain is Australia's seventh-largest trading partner, with two-way trade totalling around £15 billion in 2017-18.
The country's trade minister said the Australian government was "doing all we can" to help firms deal with the uncertainty created by Brexit.
James Pearson, chief executive of the Australian Chamber of Commerce and Industry, said the 300,000 businesses it represents were "exposed quite heavily" to export and import markets and the UK was a "significant" trading partner.
"(MPs) need to resolve the issues as soon as practical so that we can get on with building and strengthening further the United Kingdom-Australia trade and investment relationship.
It's got a long history, it's a very strong and profitable one and a beneficial one for the people and businesses of both countries, so we are looking forward to doing that once this uncertainty is resolved."
Senior Labour MP Yvette Cooper told Today: "The Government needs to seek an extension of Article 50 so that we can have a bit more time to sort things out because, to be honest, we are in such a mess."
Tory former minister George Eustice, took a different position, and said the government should be prepared to back a no-deal exit.
"We have to have the courage as a country, having taken this big decision, to take our freedom first and continue talking afterwards," he said.
"I was dealing with no-deal preparations until very recently; we know that the EU, in the event of a so-called no-deal, will in fact seek some sort of informal understanding that there wouldn't be much change for nine months."
Boris Johnson is doing a phone-in on LBC and has said that the UK will leave the EU on 29 March.
The impact a no-deal Brexit would have on the UK (Statista)
As the European Parliament began a debate on Brexit, MEP and former Ukip leader Nigel Farage tweeted:
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