DAVID Davis has offered parliament a take-it or leave-it vote on the shape of Brexit, after pro-EU Tory rebels threatened to humiliate the Government with a Commons defeat.

The Brexit Secretary said MPs and peers would be given a vote on a distinct piece of legislation setting out details of Brexit including transition deals ahead of leaving the EU.

The sop to Tory rebels came ahead of MPs today debating the EU (Withdrawal) Bill, which covers the basic legal mechanics of Brexit, such as transposing EU law into UK law.

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The extra Bill promised by Mr Davis could give Westminster a say on the UK’s longer-term relationship with the EU and cover the divorce cost, citizen rights and the transition period.

However there was widespread scepticism after Mr Davis made it clear the vote was of the take-it or leave-it variety, saying that if parliament rejected the new Bill, the deal between the UK and the EU would fall apart, and the UK simply crash out the EU with no deal.

Similarly, if the UK failed to reach a deal in Brussels, there would be no Bill brought to parliament and no vote which could prevent Brexit.

EU and UK business leaders yesterday visited Downing Street to warn Theresa May they were increasingly worried about the damage that No Deal, with the UK defaulting to World Trade Organisation tariffs, could inflict to trade across the continent.

Emma Marcegaglia, president of BusinessEurope, said: "Business is extremely concerned with the slow pace of negotiations. Business aims to avoid a cliff edge and therefore asks for a 'status quo-like' transitional arrangement with the UK staying in the customs union and the single market."

CBI chief Carolyn Fairbarn said more and more UK firms were activating Brexit contingency plans, such as relocation, because they feared being shut out the single market.

The pound fell sharply following weekend reports that Theresa May was facing another plot by Tory MPs to remove her.

The currency dropped by one per cent to below $1.31 before recovering slightly.

Mr Davis’s announcement came as the government faced possible defeat on an amendment to its EU (Withdrawal) Bill tabled by former Tory attorney general Dominic Grieve, who has called for a meaningful vote on the final Brexit package.

The government had previously agreed to give MPs a vote on a Commons motion relating to the final Brexit deal, before it was ratified by the European Parliament.

Mr Davis said he still “intended and expected” that to happen but went further by agreeing to Labour and Tory demands for any vote to take place on full-blown primary legislation.

He said: "Parliament will be given time to scrutinise, debate and vote on the final deal we strike with the EU,” before adding it was not clear when such a bill would be published.

Shadow Brexit Secretary Keir Starmer said it was a “significant climbdown from a weak government on the verge of defeat”.

He said: “For months, Labour has been calling on ministers to guarantee parliament a final say on the withdrawal agreement. With less than 24 hours before they had to defend their flawed bill to parliament they have finally backed down. However, like everything with this government the devil will be in the detail.”

But his Labour colleague Labour’s Chris Leslie called the move a “sham” designed to avert a government defeat in the Commons, and said ministers needed to do more.

He said: “It is crucial that this meaningful vote takes place well before we leave; that defeat for the government’s legislation will not imply leaving the EU with no deal; and that parliament has the same role in the event of a disastrous ‘no deal’ outcome”.

Tory MP Anna Soubry said the government appeared to be planning for No Deal.

Labour’s Chuka Umunna called it a “fake meaningful vote” that could not a No Deal Brexit.

SNP MP Peter Grant said it was a “panicked concession to appease Tory rebels”, and called for clarification on whether the new Bill made parts of the current Brexit Bill redundant.

He said: "This last-minute move shows how hopelessly divided the Tory party is, and the lack of confidence the UK government has in itself to make a success of Brexit."