Geoffrey Cox said ministers would “listen” to demands for a second Brexit referendum in the strongest sign yet the Government is ready to water down its negotiating red lines.

The Attorney General said the aim of Brexit compromise talks with the Labour Party was to “find common ground” as he told MPs the Government had entered discussions without any “preconditions”.

David Mundell, the Scottish Secretary, also said the Government was “certainly willing” to discuss the merits of a Brexit deal based on the UK being in a customs union with the European Union.

Meanwhile, Jeremy Corbyn suggested the Government was now “willing to move” on key issues to strike a deal.

The Labour leader had a “short meeting” on Thursday afternoon in Parliament with Theresa May to “check in” on the status of the talks which are due to continue today.

Tory Brexiteers fear they will lead to a softer break from the bloc which will rob the UK of the ability to have its own independent trade policy.