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Rees-Mogg stood by his claim that in drawing up its Brexit plans, the Treasury was trying to influence the argument. He also said that Charles Grant, head of the Centre for European Reform, had been given improper briefings. “He is getting private briefings from the Treasury against government policy,” he told BBC Radio 4’s Today. “This is very serious. It is not for officials to invent policy. With the referendum and with the EU, the Treasury has gone back to making forecasts. It was politically advantageous in the past. It is the same for them now. I do think they are fiddling the figures.”Grant said it was perfectly normal for officials to talk to think-tanks. “The Treasury cares about economics so it is naturally pushing for the sorts of Brexit that minimise the economic damage,” he said.

The storm erupted after Jacob Rees-Mogg asked the minister to confirm if he had heard from Charles Grant, of the Centre for European Reform think tank, 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 that account was "essentially correct."  "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," he added. Grant strongly denied the claims, and Baker was forced into an apology when an audio recording emerged which contradicted the minister's recollection of the comments.

The latest row blew up when Mr Baker was asked by Jacob Rees-Mogg to confirm that Charles Grant, head of the Centre for European Reform, had told him that “officials in the Treasury have deliberately developed a model to show that all options other than staying in the customs union are bad, and that officials intend to use the model to influence policy”.

Brexit minister Steve Baker came to the Commons at the start of business on Friday to apologise to MPs.The storm erupted after leading Brexiteer Jacob Rees-Mogg asked him to confirm if he had heard from Charles Grant, of the Centre for European Reform think tank, that “officials in the Treasury have deliberately developed a model to show that all options other than staying in the customs union were bad”.

Theresa May has said Steve Baker will not be sacked over comments made in the House of Commons which appeared to suggest there was a pro-Remain conspiracy. ...Baker failed to challenge a claim from Tory MP Jacob Rees-Mogg on Thursday that Charles Grant, from the Centre for European Reform think-tank, had alleged this was the case to the minister. He vowed to apologise after he was criticised by MPs and the trade union for senior civil servants.

Speaking in the Commons this morning, Mr Baker told MPs: "I wish to correct the record of my answer yesterday to (Mr Rees-Mogg). He is aware of this point of order. "Yesterday I answered a question based on my honest recollection of conversation. As I explained yesterday, I considered what I understood the suggestion being put to me as implausible because of the long-standing and well regarded impartiality of the civil service.
"The audio of that conversation is now available and I'm glad the record stands corrected.

Steve Baker’s explosive claims sparked a Whitehall civil war but he later apologised after his allegations were disowned by the expert source he said he heard the rumour from. ...Last night Mr Baker said: “This morning in Parliament, 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.

Civil servants may be secretly distorting evidence to “influence” the Government to stay in the EU’s customs union, a Brexit minister has suggested. Steve Baker floated the extraordinary conspiracy claim on the floor of the House of Commons, telling MPs he did not necessarily believe it – but did not rule it out.“I think it would be quite extraordinary if it turned out that such a thing had happened,” the hard Brexit supporter said.Meanwhile, the think-tank head who spoke with Mr Baker - Charles Grant, of the Centre for European Reform – flatly denied he had made any allegation about a civil service conspiracy.