Tory minister makes humiliating climbdown over 'conspiracy theory' about civil servants trying to sabotage Hard Brexit
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A Tory minister has made a humiliating climbdown after he failed to challenge a "conspiracy theory" that civil servants are trying to sabotage Hard Brexit.
Brexit minister Steve Baker wrongly claimed he had heard the "extraordinary allegation" from a think tank boss.
He said Charles Grant of the Centre for European Reform told him Treasury officials - who are meant to be impartial - have been promoting staying in the customs union in order to influence policy.
Yet Mr Grant categorically denied he did so - and was vindicated by an audio clip proving him right.
Tonight Mr Baker said he would apologise to Mr Grant and "clarify my remarks to the House."
He tweeted: "I answered a question based on my honest recollection of a conversation. As I said, I considered what I had understood to be implausible, because of the impartiality of the civil service.
"The audio of that conversation is now available and I am glad the record stands corrected. In the context of that audio, I accept that I should have corrected the premise of the question."
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Speaking in the House of Commons, Mr Baker wrongly claimed that Mr Grant had made the allegation, even though he had not.
He told MPs the theory was "implausible" but did not say it was untrue - making his boss, Brexit Secretary David Davis, visibly wince.
The FDA civil service union said Mr Baker's behaviour was the "height of irresponsibility" and questioned whether he was fit for the job.
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General Secretary Dave Penman said: "To stand at the despatch box and refuse to challenge a half-baked conspiracy theory about the civil service – one that is even now being disowned by its supposed source – is the height of irresponsibility from a serving minister.
"It is not good enough for Mr Baker to simply shrug his shoulders and allow unfounded accusations about officials to go unchallenged.
“These cowardly actions are beneath the office he holds, and Mr Baker risks seriously undermining the government he is a part of.”
The exchange came after Jacob Rees-Mogg, leader of the hardline European Research Group of Brexiteer Tories, raised the allegation in the House of Commons.
He asked Mr Baker to confirm if he heard from Charles Grant, of the Centre for European Reform, that "officials in the Treasury have deliberately developed a model to show that all options other than staying in the customs union were bad and that officials intended to use this to influence policy".
Steve Baker replied it was "essentially correct" that he had heard the "extraordinary allegations".
He said: "[Mr Rees-Mogg's] account is essentially correct.
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"At the time I considered it implausible because my direct experience is that civil servants are extraordinarily careful to uphold the impartiality of the civil service.
"We must proceed with great caution in this matter, but I have heard him raise the issue.
"We need to be very careful not to take this forward in an inappropriate way, but he has reminded me of something that I heard.
"It would be quite extraordinary if it turned out that such a thing had happened."
He denied that he had said the allegation itself was true, but added: "I still consider it an extraordinary allegation."
It comes just a day after Mr Baker attacked his own civil servants by saying their forecasts are "always wrong".
Mr Baker was responding to damning leaked government analysis that said three proposed Brexit scenarios would leave Britain worse off than staying in the EU.
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Since then, new leaked analysis has said the harm of cutting immigration outweighs the benefits of a US trade deal.
Ex-Chancellor George Osborne warned the "sums don't stack up" for a hard Brexit and said MPs could block the plans.
He also warned the Tories could lose the election if they pursue a hard Brexit that involves leaving the customs union and single market.
Mr Osborne said: "We now face a series of choices about the kind of Brexit we want and we have a much clearer idea of the consequences."
He added: "We should look clearly at the costs and benefits of, for example, leaving the customs union and doing less trade with Europe versus what we might gain from doing a trade deal with America.
"At the moment the sums don't stack up for that kind of decision.”
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Labour MP Pat McFadden, a backer of anti-Brexit group Open Britain, said: "This week we’ve seen Ministers rubbish their own Government’s documents, attack all forecasting, take pot shots at the Bank of England and reprimand parliament about its role.
"None of this is healthy for our democracy.
"The response to the reports of the Government’s Brexit analysis have been like something from conspiracy-theory central."
Theresa May today said EU nationals will not get full residency rights if they arrive in the 'transition period' after 2019 - kick-starting a fresh fight with the EU, which says they should.
And her Trade Secretary Liam Fox admitted trade deals could be "some time away".
Asked about signing trade deals, he told Sky News: "We haven't got to Brexit yet of course - and that may be some time away if we’ve got an implementation period."
Despite the backlash, Mr Rees-Mogg stood by the "conspiracy theory" tonight - insisting there was a Whitehall plot against Hard Brexit.
The MP said he still had a "worrying suspicion" about "bonkers" Treasury calculations and its interaction with pro-Remain bodies like the Confederation of British Industry.
He said: "You just wonder whether there isn’t a pattern in that, whether there isn't some orchestration rather than being an accidental constellation of the stars."
He added Treasury forecasts "are designed to a particular end, and the end is to show the only thing we should do, lo and behold, is stay in the Customs Union - which basically means not leaving the EU."
But in a blue-on-blue attack, he added: "The blame always has to lie with ministers... I think it’s the Chancellor of the Exchequer who has to take responsibility for his department."
On Charles Grant's comments he admitted: "If he says he didn’t make it, he says he didn't make it.