The MP for North Wiltshire James Gray voted against the amendment to the Finance Bill on Tuesday night that inflicted a defeat on the Government.

He said: “It was an insignificant bill which would allow the Government to raise the level of VAT and other taxes. I can’t predict what will happen next but the Prime Minister’s EU deal will be defeated next week, and she will then have 21 days to go back to the EU to get a better deal.”

Claire Perry, MP for Devizes, said: “I supported the Government on the Finance Bill last night because, whilst I do not desire a No Deal scenario and that is not what we are aiming for, I believe it is hugely important for the Government to be able to respond effectively to every possible outcome. However, whilst the Government lost the vote on one of the Amendments, planning for a No Deal scenario continues apace, and the Government is making sure that we are prepared for all possible outcomes."

The cross-party amendment tabled by the Labour MP Yvette Cooper was supported by 20 Conservative MPs as well as the opposition parties with a majority for the amendment of 303 to 296 votes. However, commentators say it won’t prevent a Government from being able to raise taxes if there is a no deal on March 29.

When the Government’s revised deal is voted down James Gray MP expects the EU will then give more ground over the Northern Ireland backstop issue, and it will be a chance for Theresa May to “talk turkey” with Brussels as March 29 gets closer.

“What the EU has proposed is unacceptable. It divides the UK with serious consequences for Northern Ireland and will cost £39bn,” he said.

As Minister of State at the Department for Business, Energy and Industrial Strategy, Claire Perry supports the deal. Last month she wrote: “There is no other offer on the table from the EU - it has been made clear repeatedly that this is the negotiated deal and, regardless of any political upheavals in the UK, we will not get more - and may actually get less - this is Peak Brexit.

“For those that want No Deal, I gently suggest that they have not fully considered the short and long term economic upheaval that such a poor outcome would deliver, and it appears clear from the Parliamentary processes this week that there will be strong attempts made cross-party to ensure that does not happen. In fact, it is the stated aim of many in the House, including shamefully some on the Opposition Front Bench, that they would rather stop Brexit.”