Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Brussels jumps on second referendum speculation to issue new plea for UK to reverse Brexit Brussels chiefs have leaped on mounting speculation about a second EU referendum to issue a fresh plea for Britain to reverse Brexit. In an intervention that infuriated Leavers, EU Council chief Donald Tusk insisted yesterday that there is still time for the UK to change its mind. He insisted the EU’s “hearts are still open” to a U-turn for the country to stay in the European Union. EU Commission boss Jean-Claude Juncker and his deputy Frans Timmermans both backed up Mr Tusk to stress the “door remains open”… Downing Street immediately dismissed the plea. The PM’s official spokesman said: “We have been absolutely clear that the British people voted to leave the European Union and that is what we will be doing”… And furious Brexit backing Tory MP Bernard Jenkin insisted it would be “absurd” for the Government “to just ignore the referendum”. – The Sun Give Britain a second referendum on Europe, says Donald Tusk – The Times (£) Donald Tusk: EU’s ‘heart still open to UK’ over Brexit – BBC News EU leaders say UK can reverse Brexit decision if it wants to – Guardian Donald Tusk to UK: EU ‘hearts are still open’ to Brexit halt – Politico Boris Johnson asked about second referendum on Brexit – Bloomberg Lovelorn one moment, negging the next… the EU is behaving like a bad ex-boyfriend – Michael Deacon for the Telegraph (£) Opposition to a second referendum outweighed support in all scenarios but one: a choice between accepting the terms negotiated for Brexit, or leaving without a deal – Lord Ashcroft for ConservativeHome > WATCH: Donald Tusk says “Our hearts are still open to you” Boris Johnson warns Theresa May she must commit £5.2bn ‘Brexit dividend’ to NHS to defeat Jeremy Corbyn Boris Johnson has warned Theresa May that the Government must make a public commitment to giving the NHS an extra £100million a week after Brexit if the Tories are to beat Jeremy Corbyn at the next election. The Foreign Secretary believes that the Government must adopt the flagship Vote Leave pledge and spend £5.2billion a year that would have been paid into Brussels on the health service instead… Mr Corbyn, the Labour leader, has put the issue at the forefront of his campaigning. Mr Johnson is likely to have the support of Michael Gove, the Environment Secretary and leading Leave campaigner, alongside senior eurosceptic Tory MPs as he makes his case for the commitment. – Telegraph (£) Boris Johnson suggests Brexit could fund NHS – The Times (£) Labour complains about Boris Johnson’s latest Brexit claim – Guardian The case for more NHS cash is growing – Isabel Hardman for the Spectator > WATCH: Bernard Jenkin MP on our financial contributions to the EU Jacob Rees-Mogg to lead Tory eurosceptic MPs and ‘hold Government to account’ over Brexit Jacob Rees-Mogg has been elected as leader an influential eurosceptic group of Tory MPs tonight and hold the Government to account over Brexit. Eurosceptics said that Mr Rees-Mogg, who is standing unopposed head the European Reform Group, is the ideal candidate for the role because he is a “true believer” in Brexit and the benefits it can bring for Britain… His appointment comes at a critical time in negotiations, as Theresa May seeks to reach an agreement with her divided Cabinet over Britain’s future relationship with the European Union. The European Reform Group played a key role in the EU referendum as it mobilised eurosceptic Tory MPs against David Cameron and his pro-Remain Cabinet ministers including George Osborne, the Chancellor. – Telegraph Jacob Rees-Mogg to lead influential group of Tory Eurosceptic MPs – Guardian Jacob Rees-Mogg hailed as a ‘true believer’ in Brexit following his appointment to key Tory Eurosceptic group – The Sun Jacob Rees-Mogg to lead backbench Tory Brexiteers – Politico Do not wreck Brexit for the British people: Jacob Rees-Mogg’s warning to House of Lords – Express > WATCH: Jacob Rees-Mogg’s Brexit highlights Sir Keir Starmer tells Labour MPs to stop ‘looking back in grief’ at Brexit vote Keir Starmer has reportedly told his colleagues in the Labour Party to stop “looking back in grief” and thinking of ways to “rub out” the Brexit vote. In what was interpreted as a hardening in stance for the party’s leadership, the Shadow Brexit Secretary appeared to dismiss calls for a second referendum when asked by MPs at a meeting of the Parliamentary Labour Party (PLP)… Labour leader Jeremy Corbyn once again at the weekend dismissed calls for a second referendum on EU membership, insisting it is not the policy of the Labour party told take the issue to the public once more. – Independent Labour in danger of ‘echoing’ Theresa May on Brexit, says Chuka Umunna – Independent Labour’s Brexit plans are ‘very clear’. Just listen to how their frontbench explain them – Asa Bennett for the Telegraph (£) Labour’s “very clear” Brexit position explained – Guido Fawkes Now Rachel Reeves baffled by Labour’s Brexit position – Guido Fawkes Labour amendments to EU Withdrawal Bill fail as rebellious Tories rally behind May Labour’s attempts to water down the EU Withdrawal Bill were thwarted yet again as rebellious Tories rallied behind the Prime Minister to get the legislation moving. The Commons voted on three amendments to change the EU Withdrawal Bill – which was put forward by David Davis to repeal EU legislation and transfer it into UK law. However MPs looking to oppose the Government’s Brexit plan were thwarted – with all amendments in the 4pm voting session failing to gain any traction in the Commons as key Tory rebels ruled themselves out of any last minute acts to water down the bill. – Express > WATCH: Highlights from yesterday’s Report Stage of the EU Withdrawal Bill Emmanuel Macron visits Calais to call for Brexit deal favouring Northern France ahead of Thursday’s trip to the UK… Emmanuel Macron stopped off on the shore of the English Channel on Tuesday to deliver a pointed message before going on to the U.K. later this week. France will prioritize the interests of its northern region in the Brexit talks, the French president said in Calais, suggesting that it was ready to drive a hard bargain with London if necessary but also to press its case with Brussels. Macron’s promise to help the north economically offers hope for French support for a pragmatic post-Brexit trade deal with the U.K. — given how much the region is dependent on trade with Britain. It suggests the EU27’s unity may start to crack in the second phase of Brexit talks as national interests come to the fore in discussions over future trade ties. – Politico Macron: French charities tell migrants lies about seeking asylum in Britain – The Times (£) Theresa May is set to pay extra cash to France and welcome more child migrants to keep UK border posts in Calais – The Sun Bayeux Tapestry to be displayed in Britain as Macron gives approval for it to leave French shores for first time in 950 years – Telegraph Beau Geste: President Macron is expected to set the tone for his meeting with Theresa May by announcing a historic cultural exchange – The Times leader (£) Anglo-French defence co-operation marches on: Emmanuel Macron’s visit to the UK is a chance to strengthen existing ties – FT View (£) May v Macron: five issues that will be swept under the diplomatic carpet at key summit – Peter Foster for the Telegraph (£) …as Theresa May invites Austrian Chancellor Sebastian Kurz to the UK British Prime Minister Theresa May on Tuesday invited new Austrian Chancellor Sebastian Kurz to “visit the U.K. in the near future,” an invitation which he is said to have accepted, according to a Downing Street spokesperson. The spokesperson described Tuesday’s conversation between the two as “a positive phone call,” in which the British prime minister “gave a brief update on Brexit and confirmed that the government will respect the decision taken by the British public to leave the EU,” according to a statement. – Politico Former SNP Minister casts doubt on ‘very dubious’ Sturgeon Brexit forecasts A former SNP government minister has cast doubt on Nicola Sturgeon’s claims that Brexit will leave Scots up to £2,300 each worse off, describing such forecasts as “very, very dubious.” Alex Neil, who served in Ms Sturgeon’s government but later voted to leave the EU, told the Telegraph that Scots “cannot” have confidence in figures drawn up before the shape of the trade deal is known. The former Health Minister, who has an economics degree and sits on Holyrood’s public audit committee, said “there are so many unknowns” and ministers do not have enough reliable data about the Scottish economy because it is not collected. – Telegraph (£) > Rory Broomfield on BrexitCentral today: The SNP ought to grasp that Brexit can hold the key to a brighter economic future for Scotland ‘Hard’ Brexit would cost EU economy €112bn, Oxford Economics predicts EU businesses’ supply chains would be hard hit in the event of a ‘no-deal’ Brexit, according to an analysis from Oxford Economics. A hard Brexit would cost the EU economy close to €112bn (£100bn), the think tank claims… For countries such as Hungary, the Netherlands and Denmark economic output could fall by 1pc. The Czech Republic and Ireland, would be harder hit, with output falling by more than 1pc. This would “mark a significant slowdown in economic activity” according to the think tank. – Telegraph Philip Hammond signals rethink on ‘anti-democratic’ tax demands sent to referendum donors after Brexit row Private donations to referendums might not be taxed in future, a Treasury minister has said, after an outcry over ‘anti-democratic’ tax demands running into millions of pounds were sent to Brexit donors. Philip Hammond, the Chancellor, is said to be “sympathetic to looking carefully” at the changing tax law so that large scale donations to referendums campaigns by private individuals are not subject to inheritance tax. However any change as result of the rethink will not affect the demands running into millions of pounds which were sent to the prominent donors to the 2016 European referendum campaigns… The demands were attacked by Boris Johnson, the Foreign Secretary, and Michael Gove, the Environment secretary, who both led the Vote Leave campaigns, as anti-democratic. – Telegraph Cost of UK domestic flights could be slashed after Brexit as ministers mull Air Passenger Duty change The cost of domestic flights within the United Kingdom could be slashed after Brexit, ministers have said as part of a potential shake-up of Air Passenger Duty (APD) rules. Passengers flying in economy class from a UK airport on a short haul flight currently have to pay £13 in APD and on internal flights they also have to pay the same levy on the return journey. The Government said European Union rules prevent the return leg of such journeys from being exempted from APD – but ministers said Britain’s withdrawal from the bloc meant the current tax regime “could change”. Campaigners welcomed the prospect of cheaper domestic travel but said the Government should go further and reduce APD for all flights to show the UK is “open for businesses as Brexit approaches”. – Telegraph (£) Steve Baker: Brexit opponents will not divert the UK from delivering a ‘stable’ EU exit Last week we tabled a series of amendments to improve the Bill, following close discussion with MPs over eight days of robust debate during Committee Stage in November and December last year… These amendments should put an end to some of the wilder speculation around how this new power will be used and make clear our view that this is not in any way a ‘Government power grab.’ … Throughout this process there have been a few opponents who have tried to use the Bill to make specific policy choices, and responded to our rejection by spreading falsehoods. But we will not let them divert us in our mission to deliver a Bill that guarantees a stable legal order, and have repeatedly offered alternative legislative vehicles for Parliament to discuss – whether on immigration, customs, animal welfare, or the implementation period. We should remember why we put this Bill forward. We did so in order to provide continuity and stability as we leave the EU – something we can all support. And we’ve shown throughout the Bill’s passage that we are a Government that listens when serious concerns are raised. – Brexit Minister Steve Baker MP for the Telegraph (£) The Sun: It’s too late for the EU to change voters minds on Brexit but the Tories must push back Which of the EU’s many contradictory faces are we supposed to trust? The tough-guy routine of negotiator Michel Barnier? The sneering of full-time troll Guy Verhofstadt? The needy pleading of President Donald Tusk? If it’s the latter, they’re too late. A little generosity in 2016 when David Cameron tried to negotiate over immigration might have swayed Brexit voters. Not now. That said, our Government does need to get on the front foot. Brussels, in cahoots with Remainers here, is ramping up a major threat to Brexit. Together they are creating a baseless panic about the future which could take root unless the Tories challenge it. Remainers already claim there is a “growing consensus” for staying in the single market and customs union. Rubbish. It’s in their imaginations. But they calculate that if they repeat it often enough it will gain traction and build support to reverse Brexit. And while the EU also believes that, it has no incentive to offer us a decent deal. The Tories MUST push back. – The Sun says Jonathan Hill: Business can help accelerate Brexit phase two During the Brexit referendum, I argued that we should stay in the EU because it would make no sense for Britain to be bound by rules over which we had no influence. I lost that argument, but for me the same logic still holds. Tying ourselves to a system we cannot control, and one that is already moving in a different direction, cannot be a viable long term economic strategy for an economy like ours. This is not to imply some kind of slash-and-burn approach to regulation, nor a repudiation of global approaches to standard-setting. But it is certainly to ask how the UK can be best placed to regulate intelligently for technological innovation and the growth industries of the future… We need to encourage Remainers and Leavers to come together to have a constructive discussion that will involve business leaders, academics and policymakers. The aim should be simple: no grand-standing, no re-fighting of the referendum. Just ideas and practical steps that could help drive growth and opportunity. – Former European Commissioner Lord Hill of Oareford for the FT (£) James Forsyth: Donald Tusk’s Brexit comments should worry the government Donald Tusk’s comments, echoed by Jean-Claude Juncker, that Britain could still change its mind on Brexit should worry the UK government. Why? Because as long as senior figures in the EU think there is a chance Brexit won’t happen, there’s very little incentive for them to think creatively about the future relationship. Instead, the temptation for them is to offer as little as possible in the hope that this might prompt a change of heart in London… The sense in Brussels that something might turn up to stop Brexit makes it imperative that the UK government gets on with setting out what kind of ‘end state’ it wants to reach with the EU. The Brexit inner Cabinet meets this week to start hammering out the UK’s negotiating position in nine key areas. – James Forsyth for the Spectator Bloomberg: The EU should let the City thrive Europe’s businesses have much to gain from keeping London as a thriving financial center. The City is by far the most significant financial hub in Europe. In 2016, the U.K. accounted for more than three-quarters of the EU’s foreign-exchange turnover, 85 percent of its hedge-fund assets and nearly a third of its equity-market capitalization, according to a recent report by the European Parliament. Some in the EU-27 see Brexit as a chance to lure away parts of this business — and they’re right. Yet it won’t be easy to replicate the wealth of expertise which the City has built up… Still, a compromise ought to be possible. Britain and the EU-27 could agree on some form of regulatory “equivalence” — under which the EU would recognize that the U.K.’s rules are as good as its own. The idea isn’t new: Europe already applies the principle of equivalence in its financial-services dealings with other non-EU countries. To be of much use for London, equivalence would need to be extended to new areas of business — but there’s no reason why that shouldn’t happen. – Bloomberg editorial Dominic Hallas: My old boss David Davis must change the EU’s ridiculous way of negotiating Brexit It is convenient for the EU (and portions of the UK press) to blame this slow progress on the UK, but it isn’t fair. We should be looking more closely the structure of the talks themselves. It is no secret, following President Macron’s comments in The Telegraph two weeks ago, that the Government is dealing with an intransigent Franco-German political establishment. As my former boss David Davis has rightly pointed out, this negotiation was never going to be “simple or easy”. But there is a deeper reason that all European negotiations take time, and that sits behind Macron’s comments: it’s not easy to get 27 countries to agree… With the clock ticking we need a shift to a system where quicker progress can be made – ditching the ridiculous formal system of ‘rounds’ of negotiations in favour of constant, ongoing talks. There is the prime opportunity to do this as we move onto the conversation about the future relationship. – Former DExEU official Dominic Hallas for the Telegraph (£) Brexit comment in brief What would Churchill have made of Brexit, given his support for a ‘United States of Europe’? – Jeremy Warner for the Telegraph (£) We are naive negotiators, but we can still score a bespoke Brexit deal – Mark Wallace for The i Don’t punish the UK for Brexit – we helped in Europe’s darkest hour – Philip Johnston for the Telegraph (£) Michael Gove is proving a champion for the environment – Stuart Winter for the Express A new global order is emerging under Trump, and Brexit Britain can take advantage – Con Coughlin for the Telegraph (£) Productivity holds the key to inflation challenges – Tim Wallace for the Telegraph (£) 4 reasons to worry about Italy – Jacopo Barigazzi for Politico Brexit news in brief Irish PM: Brexit border agreement should be legally binding – Sky News Anna Soubry claims May’s ‘Hard Brexit plan’ cost Tories Commons majority – Sky News Investment bank regulation flagged as next Brexit flashpoint – FT (£) Dutch say nations hit by Brexit shouldn’t plug EU budget hole – Bloomberg Britons in Netherlands take fight for their EU rights to Dutch court – Guardian Victor Spirescu, first Romanian migrant to UK, killed in crash – The Times (£) Swiss move closer to referendum on free movement – FT (£) And finally… Tory MP falls asleep during Ken Clarke’s Brexit Bill speech Desmond Swayne often sits behind Ken Clarke as his colleague speaks about his desire to stay in the European Union or the single market post-Brexit. While he often rests his head in his hand and sighs as Mr Clarke gives his view, today he appeared to fall asleep, or feign sleeping during the EU Withdrawal Bill debate. Mr Clarke was speaking about the [EU Charter of Fundamental Rights], and his Eurosceptic colleague appeared to find it less than riveting, as he leaned his head to the side, closed his eyes and appeared to nod off. He then seemed to wake up as Mr Clarke slightly raised his voice, and he smiled and sat up slightly. – Telegraph