At least 30 Conservative MPs have indicated to their own Government that they will not accept leaving the European Union without an agreed deal.

Sky News has been told the MPs informed whips that the economic impact of a "cliff-edge" Brexit, alongside the failure of the Conservatives to win a majority for its manifesto, should lead to a rethink of the position that "no deal is better than a bad deal".

The phrase was one of the key planks of Theresa May's Lancaster House Brexit speech and the strategy of David Davis' Department for Exiting the European Union.

It was also mentioned in the Conservative manifesto.

One former minister told Sky News that "no deal is now dead", and anticipated a transition phase of five to 10 years inside the European Economic Area.


The MPs are pointing to disappointing Conservative election results in London, Birmingham and big cities across the M4 corridor, and among the under-45s, as a reason for a rethink.

:: Hammond warns: We must avoid Brexit 'cliff edge'

Theresa May's miserable month

Another Conservative MP said Tory centrists from the 2015 intake were now organised in a WhatsApp grouping and behind the push to ensure the Prime Minister is not overly influenced by the Brexiteer grouping the European Research Group (ERG).

Its leader, Steve Baker, was recently appointed by the Prime Minister to become a junior minister in the Brexit Department.

Some ERG MPs have indicated that they would be willing to support an immediate leadership challenge should the PM "soften" her approach to Brexit.

Longstanding Brexiteer MPs such as Sir Bill Cash believe that it is impossible to delay or reverse the Article 50 process now that it has been triggered, and that Britain will leave the EU on March 2019, with or without a deal.

But there are easily enough Conservative MPs who want the Prime Minister to rule out a "No Deal" for a cross-party majority in the House of Commons.

Hammond: Brexit wasn't a vote to make the UK poorer

Chancellor Philip Hammond was aware of the MPs' views when he said that "no deal would be a very very bad outcome".

Government sources say Mrs May has already stressed that she wants and expects an exit deal with the European Union.

Number 10 has toned down its language on the issue since the election, stressing only that they would not endorse a deal worse than no deal, a deliberate attempt to punish the UK by the EU.