Brexit: live feed

Brexit: Theresa May says McDonnell wants to overturn will of British people – as it happened

• The Bank of England published its Brexit impact assessments. It found that in the event of a disorderly no deal Brexit, growth could fall by 8%, with the pound plummeting by 25%, while inflation surges.

• The shadow cabinet is split on whether Labour should back a second referendum, and there were a number apparently contradictory calls throughout the day.

• In an interview with the BBC’s Laura Kuenssberg, the shadow chancellor John McDonnell suggested that Labour would “inevitably” back a second referendum in the event of the prime minister’s Brexit deal being defeated in the Commons, so long as the party is unable to force a general election.

• However, he later told ITV that Labour’s position on a people’s vote hasn’t changed, and that if it does eventually support another referendum it would be because the government has forced it. 

• Theresa May then accused McDonnell of wanting to overturn the will of the British people at a press conference near Glasgow, while urging MPs of all parties to consider the “significant responsibility” of deciding whether to support her Brexit deal in the Commons early next month

His comments about the second referendum today show that what the Labour Party want to do is frustrate Brexit. They want to overturn the will of the British people. Parliament overwhelmingly gave the British people a vote. They voted to Leave. I think it’s a matter of trust in politicians that they actually deliver on Brexit for the British people.

• Earlier in the day, Jeremy Corbyn’s spokesman poured cold water on the idea that Labour could “seize upon” a second referendum, following John McDonnell’s comments at a Guardian Live event last night. Senior Labour sources also reportedly insisted that McDonnell’s words to Kuenssberg did not represent what he or the party thinks.

• Corbyn put May under some pressure at PMQs although it was one of her better recent outings. The Labour leader was particularly effective when he quoted what she said about Blair being obliged to publish the Iraq legal advice to highlight the hypocrisy of the government’s current position on publishing the legal advice it has received regarding Brexit.

• “So why won’t she practise what she preached on Brexit?”asked Corbyn. “This is the most shambolic government in living memory.” May said the advice any client receives from a lawyer is privileged and that the government will publish a summary. Corbyn said MPs should see the advice, warts and all; and that 20 ministers have resigned. The speaker John Bercow later told ministers they could be held in contempt if they refuse to publish the Brexit legal advice in full.

• The SNP accused May of having her “head in sand” after refusing to agree with Hammond about Brexit making the UK poorer.

• The government’s official analysis of the impact of Brexit, the PM’s proposed plan, forecasted that the economy will be between 1 and 2% smaller after 15 years than it would be if the UK stayed in the EU.

• A former civil servant who now heads the UK Trade Policy Project said the government’s economic analysis was “fraudulent”

• The chancellor Philip Hammond conceded that there will be an economic cost to leaving the European Union, even under May’s plan – which aims to minimise the damage. In October 2016, he told the Conservative party conference: “It is clear to me that the British people did not vote on June 23 to become poorer.”