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Labour has demanded the EU single market is put "back on the table" in Brexit talks after they descended into chaos.

Shadow Brexit Secretary Keir Starmer branded the Tories an "embarrassment" after the DUPtorpedoed a possible deal last night in a last-minute phone call.

He also said the government should drop the "absurd" decision to fix Brexit Day, 29 March 2019, in law.

Sir Keir's comments may signal a softening of Labour's Brexit stance.

Jeremy Corbyn has said keeping Britain in the EU single market completely - which would mean keeping free movement of people - is not possible and sacked three frontbenchers who voted to do so.

But after pressure from some of his own MPs, Mr Corbyn then said he would "guarantee unimpeded access" to the single market after Brexit. To some this meant membership in all but name.

Today Sir Keir told MPs: "Will the Prime Minister now rethink her reckless red lines and put options such as a customs union and the single market back on the table for negotiation?

"Because if the price of the Prime Minister's approach is the break-up of the Union and reopening a bitter divide in Northern Ireland, then the price is too high."

Asked what Labour's policy was after Sir Keir's comments, a spokesman said: "We want a final deal that retains the benefits of the Customs Union and the Single Market.

"Options for achieving the benefits of the Customs Union should not be swept off the table. Labour is flexible as to whether the benefits of the Single Market are best retained by negotiating a new relationship with the Single Market or by a bespoke trade deal."

Theresa May is holding emergency talks to try and resolve the Brexit deadlock after a three-and-a-half hour Brussels lunch collapsed over the Northern Ireland issue yesterday.

Mrs May is desperate to avoid a 'hard' border with Northern Ireland to stop red tape and a return to violence of the past.

Yet she also needs a 'hard' border with Europe - to stop illegal immigrants and imports getting through.

A draft deal had offered Northern Ireland "regulatory alignment" with the EU to stop a hard border with the Republic.

But the DUP and Tories feared it'd give Northern Ireland special status - breaking up the United Kingdom.

In a furious debate today, Brexit Secretary David Davis said there was NEVER a plan to keep Northern Ireland in the single market or customs union.

He told MPs: "The suggestion we might depart the EU but leave one part of the UK behind... That is emphatically not something that the UK Government is considering."

Sir Keir, however, said: "The last 24 hours have given new meaning to the phrase Coalition of Chaos .

"It’s one thing to go to Brussels and fall out with those on the other side of the negotiating table.

"It’s quite another to go to Brussels and fall out with those supposedly on your own side of the negotiating table."

He added: "Yesterday the rubber hit the road - fantasy hit brutal reality.

"There needs to be a UK-wide response to Brexit."

Sir Keir said Mrs May's decision to fix the Brexit deadline of 29 March 2019 in UK law was "absurd", saying: "If ever there was an example of why that would be absurd, yesterday was it."

His plea came as Remain-backing MPs used the row to launch fresh demands for a softer Brexit.

Remainer Tory Anna Soubry declared: "If it’s good enough for Northern Ireland it’s good enough for the rest of the country."

Mr Davis insisted claims Northern Ireland would get a special deal were by his opponents, not him.

When DUP Westminster chief Nigel Dodds said "nothing will happen that will cause the break-up of this great United Kingdom", Mr Davis replied: "Dead right."

The Tory minister insisted the whole of Britain WOULD leave the single market and customs union.

(Image: REX/Shutterstock) (Image: PA)

And he insisted "regulatory alignment" was "not harmonisation" - in other words, Northern Ireland would not match all EU rules.

But he stopped short of Brexiteers' demands to set a red line that would ban any "regulatory divergence" for Northern Ireland.

He told Tory Jacob Rees-Mogg: "The red line for me is delivering the best Brexit for Britain”.

Mr Davis complained Labour's policy had "changed 10 times in the course of the last year."

And he blasted the leaders of Scotland and London for saying if Northern Ireland gets a special deal, they should have one too.

Mr Davis said the Government was in the middle of an "ongoing round" with good progress and more talks were expected this week.