Steve Baker accepts mistake in civil service 'conspiracy theory' row

During Commons Brexit questions, prominent Brexiteer Jacob Rees-Mogg had asked Mr Baker 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".

In response, Mr Baker said he was "sorry to say" that Mr Rees-Mogg's account was "essentially correct", adding: "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."

Mr Baker was challenged by opposition MPs as he delivered his answer to Mr Rees-Mogg, prompting him to add: "I didn't say it was correct. I said the account that was put to me is correct.

"It was put to me, I considered it an extraordinary allegation, I still consider it an extraordinary allegation."

Mr Grant then released a statement denying the account of what he had said.

He said he recalled telling Mr Baker at an event at the Conservative Party conference that he was aware of Treasury research showing the economic costs of leaving the customs union outweighed the benefits of striking free trade deals.

But he added: "I did not say or imply that the Treasury had deliberately developed a model to show that all non-customs union options were bad, with the intention to influence policy."

An audio recording of Mr Grant's lunch at the Tory conference has since been published online.

In a series of tweets on Thursday evening, Mr Baker said he had based his answer on "my honest recollection of a conversation".

"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."

"I will apologise to Charles Grant, who is an honest and trustworthy man. As I have put on record many times, I have the highest regard for our hard working civil servants. I will clarify my remarks to the House."