Brexit: UK economy 'could not survive' without EU labour, warns former minister

Theresa May has warned her Cabinet gathered for Brexit talks at Chequers that the UK is at a “significant moment”, as she was told by an ex-minister that British businesses will not survive without EU free movement.

At the start of the meeting at her official country residence, the Prime Minister underlined that there would be “no attempts to sort of stay in the EU by the back door”.

But as she was delivering her message, former Business Minister Anna Soubry said UK growth was dependent on the free movement of EU citizens across UK borders.

Splits have also emerged within the cabinet itself with some ministers preferring a Brexit that leaves the UK inside the single market while others want to leave completely.

It comes amid speculation that Mrs May will trigger Article 50 of the Lisbon Treaty, starting formal Brexit talks, without first putting it to a vote of Parliament.

Mrs May has tasked each member of her cabinet to form a plan of how their department can capitalise on Brexit.

She told them at the start of the meeting: “We’ll be looking at the next steps that we need to take, and we’ll also be looking at the opportunities that are now open to us as we forge a new role for the UK in the world.

“We must continue to be very clear that ‘Brexit means Brexit’, that we’re going to make a success of it.

“That means there’s no second referendum, no attempts to sort of stay in the EU by the back door, that we’re actually going to deliver on this.”

Philip Hammond is expected to put forward plans for a sector-by-sector approach to remaining in the single market at the meeting.

There is a desire among some ministers to agree access for the financial sector and the car industry, while at the same time curbing immigration.

But other senior ministers including Brexit Secretary David Davis and International Trade Secretary Liam Fox favour totally pulling out of the single market to gain full control of UK borders.

This morning Ms Soubry told the BBC such a move would damage the UK economy. Asked if she wanted to retain free movement, she said: “Yes, that is my view.

“I believe in the free movement of labour form the EU. It has benefitted our country, especially business.

She went on: “Go and talk to those businesses, whether it’s picking fruit, whether it is people relying on highly qualified engineers, other experts working in British business.

“British business could not survive without access to that free movement of labour.”

She urged colleagues to make a “good strong positive case” for immigration or risk damaging UK growth.

Mrs May is also expected to use the meeting as a show of Tory unity, comparing it to the current unrest in Labour during the party’s leadership contest.

In particular, it will be an opportunity for the three ministers who have a role in Brexit, Foreign Secretary Boris Johnson, Dr Fox and Mr Davis, to appear side by side.

There have been reports of a turf war between the three cabinet members, as Dr Fox and Mr Davis attempt to build their departmental workforces up from scratch.

Downing Street has said MPs will be given "a say" on the process for the UK's departure from the EU.

But a Downing Street spokesman repeatedly declined to say whether Parliament would be given a formal vote on triggering Article 50.

Number 10 has insisted there is "no legal obligation" for Mrs May to consult Parliament before invoking the Article and has said it will not take place before the end of the year.

Downing Street has also confirmed Mrs May will not hold a second referendum or an early general election to give voters the chance to sign off on any Brexit deal.