David Davis says he is speaking to "every member state I can" on post-Brexit City deal while Steve Baker doubles down on civil servants claim

Minister Steve Baker doubled-down on comments he made earlier in the week when he confirmed backbencher Jacob Rees-Mogg's claim that he had heard from Charles Grant, director 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".

Baker said: “I am sorry to say that my honourable friend’s account is essentially correct [that Grant had made this claim].”

He added: "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. I think we must proceed with great caution in this matter but I heard him raise this issue. I think we need to be very careful not to take this forward in an inappropriate way... I think it would be quite extraordinary if it turned out that such a thing had happened."

Grant has said he will be issuing a statement shortly.