Sir Keir Starmer has been accused of "betraying our fisherman again" after it emerged the Prime Minister is poised to sign away Britain's waters to the EU in exchange for a defence deal.
The "likely direction of travel" for Labour is to sacrifice fishing waters for access to Brussels's €150billion-valued defence fund, a mega investment drive unveiled last month aimed at enabling countries to re-arm quicker.
That could open the door for UK firms to bid for contracts under the EU umbrella - which critics have warned risks a "Brexit betrayal", according to The Sun.
One insider told the newspapet that if the choice fell between a "small industry" like fishing and a "big industry" like defence, the Government "should pick the big industry".
The Prime Minister is poised to sign away Britain's waters to the EU in exchange for a defence deal
PA
As a result, top Tories - and fierce Brexiteers - have come out fighting.
Sir Jacob Rees-Mogg said: "The EU ought to stop carping and pay us for defence while the Government must not flounder by betraying our fisherman again."
While Steve Baker said: "This is yet another lose-lose from Labour, with the EU taking on both counts.
"Our defence capacity is a substantial prize for Europe, so we wouldn't be giving up fish for them to take it.
"Further concessions on fish are a fundamental betrayal of our departure from the EU."
LATEST ON EUROPE'S FISH DEMANDS:
'The Government must not flounder by betraying our fisherman again,' Jacob Rees-Mogg fumed
PA
The new report flies in the face of a claim made by an EU source to the Mail just days ago that "even Emmanuel Macron isn't stupid enough to let fish get in the way" of the UK getting in on the continental defence drive.
But it lines up with reports which emerged from Brussels some days ago, where France, backed by the likes of Denmark, insisted on a "fish-for-defence" gambit at a key meeting of EU ambassadors.
And Sandro Gozi, an ally of Emmanuel Macron who leads the European Parliament's Brexit "reset" efforts, has maintained the UK must resolve the issue of fishing rights to build "trust" with Brussels - as the current UK-EU fishing deal expires next year under the Trade and Cooperation Agreement (TCA).
The TCA allows the UK and EU to fish in each others' waters, and is bound by a quota system. In December, Britain agreed a £310m quota with the EU and Norway to fish for haddock, cod and herring in the North Sea.
Sandro Gozi has maintained the UK must resolve the issue of fishing rights to build 'trust' with Brussels
GETTY
Labour had in the past indicated a willingness to compromise on fish, but - before Saturday's news - was thought not to believe an agreement should be a quid pro quo to a defence deal.
And Labour MPs are growing in confidence that a defence deal is within grasp, the i newspaper reports.
One said they had been "told a security pact has been done" - which may mean a technical-level deal between UK and EU officials has been struck without political sign-off.
Meanwhile, several sources have hinted that a security deal will likely see Britain included in Europe's £150billion defence fund, although this may mean British firms are only included if they agree to collaborate with European partners.
