Labour has kicked a decision on a second referendum down the road after agreeing to stick to Jeremy Corbyn’s Brexit policy fudge.

The party’s ruling body took more than five hours to thrash out a compromise in a bid to unite warring Labour MPs for now. 

The National Executive Committee agreed Labour’s manifesto for the EU elections would not include a firm pledge for a fresh public vote. 

Mr Corbyn hopes that the decision will help him fight off a full-blown attack from Nigel Farage’s Brexit party at the polls.

But Labour’s Remain-supporting MPs and membership wanted the party to take a much clearer pro-referendum line.  

“The NEC agreed the manifesto which will be fully in line with Labour’s existing policy; to support Labour’s alternative plan and, if we can’t get the necessary changes to the Government’s deal, or a general election, to back the option of a public vote,” a source said.

Leading party figures, including deputy leader Tom Watson, had been pushing for a new Brexit vote in all circumstamces.

Some pro-referendum MPs hailed the decision as the first time a second referendum will appear in a Labour manifesto. 

They believe that the Government and Labour will fail to reach agreement on Brexit and a general election is off the cards – so Mr Corbyn will be forced to pivot to a second referendum.  

Ilford North MP Wes Streeting said: “Glad the NEC has made the right call and confirmed that a public vote will be in our manifesto for the European elections. 

“We’re a party for Remain and it’s right that everyone – Leavers and Remainers – should be given the final say on our Brexit future.”

But others were furious at the failure of the party to agree a stronger policy.

Sunderland MP Bridget Phillipson said Labour had “done the bare minimum needed and I can only hope it will be enough to secure the support of all those millions of our voters demanding the final say on Brexit”.

Outgoing London Labour MEP Mary Honeyball added: “Looks like Labour NEC has agreed business as usual. Not good enough.”

The party is now understood to be rewriting its controversial European election leaflet so that it includes the option of a fresh vote.

Labour MPs with Leave seats denied that the manifesto decision made a referendum inevitable. 

Gloria de Piero, MP for Ashford said: “Labour’s manifesto for the European Parliament will not contain a pledge to hold a second Brexit referendum.

“The party’s ruling national executive committee agreed that another nationwide poll should only be “an option” if it cannot force a general election.”

Sources close to the party leadership had claimed that they were pushing for the manifesto to reflect Labour’s existing policy which keeps the option of a second referendum on the table.

But ahead of the NEC’s decision Mr Watson said “the context has changed” since the 2018 party conference and Labour should now throw its full support behind a new vote “to heal the divide in the country”.

Earlier, he walked out of a shadow cabinet meeting after the leadership refused to hand out copies of the manifesto.

Sources close to Mr Corbyn were relieved an attempt by the TSSA union to push for a second referendum on “any” Brexit deal failed. 

Many party members want Labour to make its agreement in cross-party talks with the Government conditional on a public vote.

The Labour leader and all nine Momentum reps voted against the amendment, which was supported by around a dozen of the 41 NEC members.

TSSA chief Manuel Cortes said: “Sadly, it doesn’t appear that there is anything straight talking about Labour’s latest Brexit fudge”.

A Labour spokeswoman said: “Labour is the only party which represents both people who supported leave and remain. We are working to bring the country together after the chaos and crisis created by the Tories.”

Meanwhile, the Government is planning to pull the plug on cross-party Brexit talks next Wednesday if there is no breakthrough next week, sources claimed. 

Senior figures from the Tories and Labour will resume negotiations on Tuesday, after the Back Holiday weekend, after early signs of compromise earlier this week. 

However, both sides remained downbeat about the chances of striking a deal in time to allow ministers to scrap planned European elections on May 23.

Five weeks will have passed since Brexit was due to take place and both main parties will have seen the results of Thursday’s local elections in England, which are set to be overshadowed by the ongoing EU withdrawal crisis.

Foreign Secretary Jeremy Hunt has said the Government risks losing Tory support if it agrees a customs union plan in the Brexit talks – the most controversial area for compromise. 

“If we were proposing, which I very much hope we don’t, to sign up to the customs union, then I think there is a risk that you would lose more Conservative MPs than you would gain Labour MPs,” he said. 

It comes as Mrs May faces a high-powered group of MPs on Wednesday who are expected to quiz her on her plans to break the Brexit deadlock. 

If the talks break down, ministers are planning to give  MPs another series of votes on Brexit options, though this time using a preferential system so that they are forced to agree on at least option.

Government insiders hope this would pit Mrs May’s own proposal into a run-off with the next favourite option – probably a softer Brexit – and focus the minds of Tory Brexiteer rebels to finally back her deal.

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