Conservative infighting set to intensify as leading Brexiteers unveil rival plans for future relationship with EU

Leading Tory Eurosceptics are to spell out rival Brexit plans that directly contradict Theresa May’s proposals, setting the scene for intense Tory infighting just weeks before a deal is meant to be agreed with the EU.

The rebel plans are likely to demand looser future relations with Brussels and are to be laid out by ex-cabinet minister David Davis and lead Eurosceptic Jacob Rees-Mogg, but are also said to enjoy support inside the cabinet.

In a sign of the impending hostilities, Brexit secretary Dominic Raab launched a pre-emptive attack on the approach taken by the Eurosceptics on Sunday, saying the kind of free trade deal they outline is “off the table”.

Ms May will meet her top team during the morning to discuss the fallout of last week’s summit in Salzburg where EU leaders torpedoed her “Chequers” proposals, forcing the prime minister to accuse them of disrespecting the UK.

Monday’s cabinet meeting could also see a new clash between senior ministers over Britain’s future immigration policy and whether EU citizens should be afforded any kind of special status.

The new Brexit proposals to be backed by Mr Rees-Mogg, former cabinet minister Theresa Villiers, ex-Labour MP Gisela Stuart and Mr Davis – who quit the cabinet in protest at Ms May’s plans – have been formed with the free-market think tank, the Institute for Economic Affairs (IEA).

Mr Davis and the others have previously argued that for the UK to fulfil its potential, any kind of tight customs arrangement with the EU should be ditched.

Ms May’s plans include a customs plan that they claim would limit free trade deals after Brexit, meanwhile there is doubt the prime minister can get her proposals through the house of commons.

Reports over the weekend suggested the IEA will seek to prevent a hard border in Ireland through a new UK/EU trade deal and customs arrangements that would use technology to take all checks away from the frontier.

Commons leader Andrea Leadsom, pensions secretary Esther McVey and international development secretary Penny Mordaunt are said to be pushing Ms May to change tack and swing towards a looser Canada-style free trade deal with Europe.

Over the weekend Mr Davis’s former special advisor Stewart Jackson said Ms May had ten days left to ditch Chequers and commit to something else in her conference speech next week, or face a leadership challenge.

Tory leadership hopeful Boris Johnson also advocates the Chequers proposals being ditched and replaced with a loose free trade deal, similar to that likely to be set out on Monday.

Before the new proposals were even published however, Mr Rabb drew battlelines, saying the approach is “off the table”, because such an arrangement would see the EU demand unacceptable conditions in relation to Ireland.

Asked about the possibility of a Canada-style free trade deal, he said such an arrangement would see the EU try to “carve up” the UK, by keeping Northern Ireland in the EU’s customs union.

He went on: “It’s off the table in the terms that the EU would even plausibly at this stage … accept the nuts and bolts.

“What they are suggesting is that we would stay in a backstop arrangement with Northern Ireland – which would be a part of the United Kingdom, subject to a wholly different economic machine. That can’t be right.”

It is less than a month until the October European Council summit at which Brexit negotiators had been hoping to agree the UK’s withdrawal terms, but in Salzburg last week EU leaders said Ms May’s Chequers proposals “will not work”.

The situation was salvaged following statements from both Ms May and council president Donald Tusk, but it leaves the two sides with a major gap to bridge before the next meeting and has given fodder to Eurosceptics who say her plans are already dead in the water.

The cabinet will discuss the fallout from Salzburg on Monday, as it also sits down to discuss the UK’s future immigration proposals, already a further pitched battle between senior ministers.

Home secretary Sajid Javid is said to be pushing for a system that gives no preferential treatment to EU citizens, similar to that set out in a government commissioned report last week.

But chancellor Philip Hammond is alternatively said to be pushing for some kind of special status to be included in the government’s immigration bill, so that it can be used as leverage in future trade negotiations.