EU referendum: Tory infighting breaks out as MP accuses Chris Grayling of 'peddling myths' by saying EU is ‘disastrous’

Tory infighting over the EU broke out in public on Thursday morning after Cabinet minister Chris Grayling was accused of "peddling" myths over his claim that an unchanged would be "disastrous" for Britain.

Damian Green, a senior Conservative MP and former immigration minister, said Mr Grayling was being hypocritcal by warning of staying in an unreformed EU after fighting the election campaign last year boasting of rising employment and low inflation.

"We’ve done all that as members of the EU," the pro-European Mr Green said.

"It seems to me a bit odd to say nine months later ‘oh it’s all disastrous’".

Mr Grayling, the Leader of the House of Commons, made the comments in Thursday's Daily Telegraph - becoming the first Cabinet member to publicly signal he will campaign for Britain to leave the UK when David Cameron completes his renegotiation.

Days after Mr Cameron announced the suspension of collective Cabinet responsibility - giving ministers the freedom to campaign for an Out vote - Mr Grayling said the UK is at "a crucial crossroads" and "cannot be left in a position where we have no ability to defend our national interest".

The Leader of the House of Commons added: "Nor can we simply accept endless migration from across Europe with no ability to slow or stop the resulting growth in our population".

In the clearest sign yet that he will join the Leave campaign, Mr Grayling said it was vital that Mr Cameron's efforts to reform Britain's membership of the EU achieves far-reaching changes.

His publicly declared stance will pile even more pressure on Mr Cameron to stay firm on his demand to change benefit rules for EU migrants - the most contentious of his four key proposals for change.

EU leaders have so far resisted attempts by Mr Cameron to make EU migrants wait four years before they can claim in-work benefits and failing to achieve this key reform would undoubtedly lead eurosceptic figures such as Mr Grayling to campaign to leave.

"I am someone who believes that simply staying in the EU with our current terms of membership unchanged would be disastrous for Britain," Mr Grayling wrote.

"That’s why I have always believed that it is imperative that his renegotiation takes place and delivers as much potential change as possible.

"It is in the interests of all Eurosceptics and of our country.

"I want Britain to choose between a changed relationship and leaving, and not between the current situation and leaving."

Mr Grayling's eurosceptic views are well-known, but such an outspoken criticism of the EU is unlikely to please Mr Cameron, who has pledged to campaign for Britain to stay in the EU if he achieves his reform plans.

His fellow Tory MP Mr Green suggested Mr Grayling was scaremongering about the current status of the EU. "I want to challenge some of the things Chris is saying," Mr Green told the Today programme.

"I think he’s peddling myths about Britain in Europe; it’s fascinating he says that ‘carrying on as we are would be disastrous for Britain’.

"He and I fought an election campaign last year – a successful election campaign – in which we told the British people that we were creating more jobs, we kept inflation down, we’re bringing the deficit down, we’re creating millions of new apprenticeships.

"We’ve done all that as members of the EU. It seems to me a bit odd to say nine months later ‘oh it’s all disastrous’."

A letter earlier this week Downing Street published a letter Mr Cameron sent to his ministers setting out strict rules on the suspension of collective Cabinet responsibility.

It bars ministers from speaking in favour of a Brexit in the House of Commons, ties the Civil Service to the Government's official position - expected to be in favour of remaining in the EU - and restricts special advisers from helping ministers campaign for leaving the EU other than in their own time.

He also told ministers they must not do or say anything to "undermine" the renegotiation.

Downing Street confirmed that Mr Cameron was aware of the article before its publication, and was "relaxed" about its content, but said the Prime Minister did not have a hand in writing it.

"He sets out that there are clear problems with the status quo in terms of the relationship we have with the EU," Number 10 spokesman said. "That's exactly the position the Prime Minister has taken.

"He has made clear that he believes in this process of renegotiation to fight to get the best deal for Britain, and that's exactly what the Prime Minister is doing at the moment."

Asked if Mr Cameron agreed that the UK's current terms of membership are "disastrous" for Britain, the spokesman said: "We would agree that the status quo doesn't work for the UK. That's always been the basis on which the Prime Minister began this process of regnegotiation."