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A bombshell leaked document today reveals Theresa May’s plan to block a second referendum and stage “preferential votes” in the Commons designed to allow Britain to leave the EU on July 31.

The leaked memo, shown to the Evening Standard, was sent to Labour on Wednesday, a day after the Prime Minister and Jeremy Corbyn met for private talks.

The revelation came as a surprise on the day Mr Corbyn pulled the plug on cross-party talks with the Government, saying that they had “gone as far as they can”.

The plan involves:

Free votes for MPs in which they would rank in order of preference five different forms of customs arrangements with the EU, ranging from a full permanent trade pact to a looser or temporary arrangement. The aim is to force the Commons, which has rejected every option shown so far, to a decision.

A free vote on making any deal subject to a second referendum, which appears designed to block the campaign backed by 150 Labour MPs for a confirmatory ballot attached to any deal.

Whipped votes on other areas where the two sides appear to have reached agreement, including to keep European worker rights and green standards.

The document infuriated Labour MPs opposed to Brexit who said it seemed that the two leaders had discussed the plans.

Labour MP Alex Sobel called on Mr Corbyn to disown the plan - and to back a referendum immediately.

“This is the battle plan for a desperate Prime Minister to freeze the people out over the biggest decision facing the country in two generations,” said the MP.

A Whitehall source told the Standard that the document appeared to show areas where the two sides had reached agreement in the talks, which have lasted for 42 days.

It lists agreement to leave with a deal rather than on no-deal terms; to leave on July 31; to have as close as possible, frictionless trade; to end free movement; to seek the fullest participation in EU agencies covering medicines and other critical areas.

However, a senior Labour source insisted that the document was not approved by Mr Corbyn and no decision had been made by Labour on the form of votes to be staged.

“It is a Government document that has been put to us,” said the source, confirming the memo was genuine.

In a letter to the Prime Minister, the Labour leader appeared to pull the plug on cross-party co-operation.

“I am writing to let you know that I believe the talks between us about finding a compromise agreement on leaving the European Union have now gone as far as they can,” Mr Corbyn wrote.

He added: “It has become clear that, while there are some areas where compromise has been possible, we have been unable to bridge important policy gaps between us.”

The idea of preferential votes, with the least popular options being knocked out until a winning plan emerges, is controversial with Brexiteers as well as Remainers.

Mrs May herself is said to be wary in case it could lead to “everyone’s second choice” being adopted.

The document says both sides would take stock after such votes, which would be non-binding, to decide if the outcome could be endorsed officially.

The PM’s official spokesman confirmed the document was genuine. On the end of the talks, the spokesman said: “We have made real progress on some issues such as workers’ rights and environmental protections but it is clear we are not going to be able to reach agreement. In particular there has been a challenging discussion in respect of … a customs union and the holding of the second referendum.”

Campaigning in Bristol, Mrs May blamed Labour for the collapse of the talks. She said they had been “constructive” but foundered because Mr Corbyn’s frontbench was split over whether to “deliver Brexit or hold a second referendum which could reverse it”.