David Cameron stood accused of delusion and selling the country short last night after he hailed his deal to keep Britain in the EU.

The Prime Minister claimed he had secured 'substantial change' to the UK's relationship with Brussels – despite having broken two key Tory manifesto pledges.

Incredibly, he claimed the deal was so good that he would recommend Britain joining the Brussels club – were it not already a member.

Selling the deal: PM speaking to staff at a factory in Chippenham, Wiltshire, yesterday after his EU negotiations

Amid mounting fury at the gagging of Eurosceptic Tory ministers, Mr Cameron opted not to face Conservative MPs in the Commons – instead preferring to give a speech at the factory of a pro-EU, German-owned company.

In the chamber at Westminster angry Tory backbenchers lined up to denounce his 'slap in the face for Britain'. They said his supposed 'breakthrough' deal did little or nothing to curb mass immigration, restore sovereignty or end the hugely divisive splits in the Tory Party over Europe.

And last night it emerged that three Cabinet ministers – Iain Duncan Smith, Chris Grayling and Theresa Villiers – are ready to publicly declare for the leave campaign.

However, the PM received a boost when Home Secretary Theresa May effectively ruled out joining them, ahead of the expected June 23 referendum.

The Eurosceptics were scathing about Mr Cameron's failure to secure an outright four-year ban on the payment of benefits to EU workers.

He had to trumpet instead an 'emergency brake' that will only restrict in-work handouts.

The bizarre compromise means migrants will be eligible for tax credits that increase the longer they are in the UK until, after four years, they are on the standard rate.

Critics said this offered them an incentive to stay here longer. It also emerged that MEPs could block the brake after the referendum.

Refugees walk through the transit center for refugees near northern Macedonian village of Tabanovce

In a second manifesto surrender, Number 10 ditched a pledge to end child benefit for youngsters living abroad.

The handout survives but will be paid at the rate prevailing in the claimant's home country, providing the prospect of bureaucratic chaos.

Andrew Rosindell, Tory MP for Romford, said: 'These proposals are a bit of a slap in the face for Britain. The EU have shown that they simply have no appetite for changing their ways.'

Campaigners at Migrationwatch said the changes were 'unlikely to have any significant effect' on net inflows. Immigration from the EU alone is currently 180,000 a year.

One Government insider said: 'This is a pale shadow of what was already a pale shadow.' Another added: 'Does it stop anybody actually coming here in the first place?'

Eurosceptics: Last night it emerged that three Cabinet ministers – Iain Duncan Smith, pictured left, Chris Grayling and Theresa Villiers, pictured right, – are ready to publicly declare for the leave campaign

On a day of drama:

Mr Cameron admitted his plans would not cut migration to the 'tens of thousands';

The Out campaign continued to hunt for a figurehead after Mrs May declared Mr Cameron had won the 'basis for a deal';

A senior Czech minister said the deal was likely to be signed off this month;

Bookmakers shortened the odds of Britain voting to remain inside the EU to 1/3.

Support for the PM: Home Secretary Theresa May effectively ruled out joining the Out campaign

Eurosceptics fear the Prime Minister is so determined to hold his referendum in June – before the migrant crisis gets worse – that he will be willing to give further ground to Brussels in the next two weeks of haggling before the deal is voted on by EU leaders.

There is also alarm that the emergency brake could take a full year to introduce once the referendum is complete.

After months of negotiations, in which the PM flew thousands of miles to EU capitals, European Council president Donald Tusk yesterday released the basis for a draft deal intended to keep Britain inside the EU.

The short document included pledges to give Britain an exemption from the EU's commitment to 'ever closer union' and boost competitiveness.

Controversial proposals were unveiled for a so-called red card that would allow national parliaments to block some EU legislation if 15 of them join forces. This stopped well short of demands by Eurosceptic Tory MPs for a simple veto.

Other pivotal issues – such as restricting freedom of movement – were never even raised.

Mr Cameron said the proposals were 'worth fighting for' and Britain could have the best of both worlds by keeping access to the single market and a voice around the top EU table, while retaining its independence.

He added: 'Hand on heart, I have delivered the commitments made in my manifesto.'

A decision was taken late on Monday evening that Mr Cameron was going to give a speech at the Siemens factory near Swindon. Labour asked for him to attend the House of Commons yesterday but Mr Cameron had already left.

Europe minister David Lidington responded on behalf of the Government and faced a barrage of angry questions.

Steve Baker, Tory MP for Wycombe, told him: 'This in-at-all-costs deal looks funny, it smells funny, it might be superficially shiny on the outside, but poke it and it's soft in the middle. Will you admit to the House that you have been reduced to polishing poo?'

NEW 'RED CARD' VOTING SYSTEM COULD BE USED AGAINST BRITAIN A ‘red card’ system letting national parliaments block EU legislation could be used against Britain, it was claimed last night. As part of the British renegotiation, the system was praised by David Cameron as a way for Westminster to block ‘unnecessary or unwanted’ Brussels laws. But it could also be used by other countries to stop legislation from the European Commission that is in Britain’s interests. Under the proposal, revealed yesterday, 55 per cent of national parliaments can club together to block initiatives. However, the system could be complicated as both the House of Lords and the House of Commons would get a vote. Former Tory Cabinet minister Liam Fox yesterday raised the possibility that peers could get in the way of MPs trying to thwart EU legislation. They could gang up with other national parliaments to circumvent Commons attempts to get past the 55 per cent threshold to stop a proposal. He told the Commons: ‘As far as I can understand it, the red card system would give a vote to both the House of Commons and the House of Lords as parliamentary chambers. This would open up the possibility of the unelected upper house voting with other European parliaments to force EU legislation upon the elected House of Commons.’ British officials believe the red card scheme will be approved by EU leaders at a summit later this month. Germany welcomed the proposal. Ralph Brinkhaus, deputy chairman of Angela Merkel’s party, said: ‘Better integration of national parliaments will increase EU citizens’ acceptance of Europe.’ Advertisement

Analysis: A deal full of spin and sell outs

Mr Cameron yesterday claimed the draft deal will secure 'substantial change' in Britain's relationship with the EU. Here, JAMES SLACK examines what he wanted – and what he got.

TAX CREDITS

'Substantial change': The PM speaking yesterday

What he wanted: A ban on EU migrants being paid in-work benefits for the first four years they are in the UK.

What he got: An emergency brake allowing benefits to be restricted for up to four years if our public services or welfare system are under pressure. But there is a huge catch – the EU insists the 'limitation should be graduated, from an initial complete exclusion to gradually increasing access to such benefits'.

In other words, EU workers will lose out on benefits for only one or two years then begin receiving payments until – after four years – they will not lose out at all. Details on when the brake can be pulled are vague but, crucially, the final decision will rest with Brussels.

Verdict: An ugly compromise that campaigners say will make little or no difference to net migration from inside the EU, which stands at 180,000 a year. Three quarters of EU workers get little or no tax credits and, in any case, the new £9 living wage will ensure Britain remains a magnet for workers from low-paid countries. The brake will be implemented only if Britain votes to remain in the EU. Eurosceptics fear Brussels could renege on the promise, or it could be blocked by MEPs.

CHILD BENEFIT

What he wanted: The 2015 Tory manifesto promised that: 'If an EU migrant's child is living abroad, then they should receive no child benefit, no matter how long they have worked in the UK and no matter how much tax they have paid.'

What he got: Child benefit will continue to be paid, but at the same rate as in the child's home country. For eastern European countries in particular, this will significantly cut the bill. However, some officials fear it will be a recipe for chaos – with Government IT systems struggling to cope with paying 28 different levels of child benefit.

Verdict: Better than the status quo but still amounts to the abandonment of a manifesto commitment.

RED CARD FOR NATIONAL PARLIAMENTS

What he wanted: 'National parliaments to be able to work together to block unwanted European legislation.'

What he got: A pledge that, if 55 per cent of national EU parliaments object to a piece of EU legislation within 12 weeks of it being tabled, the council presidency will hold a 'comprehensive discussion' and either amend the proposals or block them altogether.

Britain would need the support of at least 14 other states to make use of the red card. The UK could be easily out-numbered by the 19 members of the eurozone.

Verdict: Heavily spun as a victory by Number 10 but stops well short of the outright veto demanded by eurosceptics, including some Cabinet members.

Taking the heat: Europe minister David Lidington responded on behalf of the Government in Parliament

PROTECTION FROM THE EUROZONE

What he wanted: A mechanism to ensure that 'Britain can't be discriminated against because it's not part of the euro, can't pick up the bill for eurozone bailouts and can't have imposed on it changes the eurozone want to make without our consent'.

What he got: Vague promise that an unspecified number of non-euro states will be able to 'indicate their reasoned opposition' to a eurozone proposal and that the EU's ruling council will then discuss the issue. Britain will not have to pay for any future eurozone bailouts and, where emergency funds are used, they can be recovered – save for admin costs. There was also a pledge to boost competitiveness.

Verdict: France has been resisting the idea that Britain can interfere in the workings of the single currency. Unclear what will happen if no agreement can be reached. Brussels remains adamant that no state should be able to 'veto the effective management of the banking union or the future integration of the euro area'.

PROMISES HE QUIETLY DROPPED Since becoming Tory leader, David Cameron has pledged a series of radical changes to European powers over Britain, only to quietly drop them in the face of resistance. They include: Charter of Fundamental Rights. In 2009 Mr Cameron promised a complete opt-out of the charter, which further extends human rights laws.

Social and employment laws. In 2010 Mr Cameron pledged to claw back powers from Brussels, but this was quietly dropped.

Treaty change. Promised ‘full-on treaty change’ as recently as 2014, but now hopes the moves will be added to a treaty at a later date.

Working time directive. In 2012 he promised to change the law which includes the contentious 48-hour maximum working week.

Common Agricultural Policy. Repeated calls for reform of farming subsidies, but no sign of any change yet.

Waste. In 2009 he promised to end the European parliament’s ‘absurd’ practice of meeting in Strasbourg as well as Brussels. Advertisement

SHAM MARRIAGES

What he wanted: The 2015 manifesto promised 'a continued crackdown on 'illegal working and sham marriages'.

What he got: The European Commission agreed to exclude from free movement rules 'third country nationals who had no prior lawful residence in a member state before marrying a union citizen'. This is crucial in ending the racket of non-EU citizens who would not qualify for a UK visa getting round the rules by marrying somebody from another EU state, often in Eastern Europe, then moving here. Criminal gangs have been charging thousands to facilitate fake ceremonies.

Verdict: A win. Number 10 had suggested Europe was objecting to the crackdown. Home Secretary Theresa May fought hard to ensure it remained part of the package.

EVER CLOSER UNION

What he wanted: Exempt Britain from the commitment in the EU's founding treaty to move toward 'ever closer union'.

What he got: The EU said it was content to acknowledge 'that the United Kingdom, in the light of the specific situation it has under the treaties, is not committed to further political integration into the European Union'.

There was also an acknowledgement that Britain does not have to join the euro – a symbolic gesture since the UK has zero intention of signing up to the crumbling one-size-fits-all currency union.

Verdict: A win – though eurosceptics will believe it when they see it. The change will not be written into the EU's treaties until they are next reopened. No date has been set for this to happen.

NATIONAL SECURITY

What he wanted: The 2015 manifesto promised new powers to 'stop terrorists and other serious foreign criminals who pose a threat to our society from using spurious human rights arguments to prevent deportation'.

What he got: EU rules which allow criminals and terror suspects to be turned away at the UK border will be strengthened significantly. In particular, EU nationals will be turned away even if they do not present an 'imminent' threat. Their 'past conduct' or so-called soft intelligence – police information which stops short of a conviction – will be sufficient to act.