Last night, Mrs May survived a knife-edge customs union vote after Tory rebels were warned their amendment would trigger a no-confidence vote which could bring down the Government.
MPs voted 307 to 301 to overturn an amendment, tabled by the Tory Remainers Nicky Morgan and Stephen Hammond, that would have forced the UK to join a customs unions with the EU if no agreement had been reached on trade by January 2019.
A defeat on this key legislation would have changed Mrs May’s negotiating priorities and may have been the final blow for her fragile leadership.
Two EU officials have told Bloomberg that Brussels chiefs are likely to continue with talks on the Irish border issue.
The meeting with European affairs ministers in Brussels will be the EU’s first collective response to Mrs May’s white paper.
Diplomats in Brussels are concerned that there is more chance of a no deal scenario if Mrs May is forced out of Downing Street.
Officials believe that Mrs May’s Chequers plan does represent progress because it at least gives Brussels a foundation to work on.
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12:30pm update – Theresa May and Jeremy Corbyn go head to head in PMQs
Mrs May slammed Mr Corbyn saying that she wants the UK out of the customs union and he wants the country to remain.
The Labour leader attacked the Tory leader for the in-fighting in her party that has taken over from any progress on Brexit.
Mrs May said: “I want us out of single market he wants us in.
“I’ve ruled out a second referendum he won’t. There’s no doubt who is respected will of the people and delivering on the vote – and it isn’t him.”
Mr Corbyn responds: “With only three months to go until the final withdrawal agreement is due to be signed, the Brexit Secretary has resigned, new secretary is skipping negations.
“Two years of negotiating with themselves and now they want to shut down Parliament.”
12pm update – Boris Johnson’s resignation statement has been pushed back to 3pm
The government has three urgent questions following PMQs leaving Mr Johnson’s resignation speech shunted to mid-afternoon when the Commons is likely to be rather less full than just after PMQs.
Mr Johnson left the cabinet last Monday following disagreements with Mrs May on her Chequers Plan for Brexit.
11am update – DUP MP suspended for failing to register Sri Lanka trip
Ian Paisley Jnr has been suspended from the House of Commons for seven weeks after breaking Westminster rules and spending more than £100,000 on a trip to Sri Lanka that he failed to register.
The Commons standard committee has said: “In view of the seriousness of this matter, we recommend that Mr Paisley be suspended from the service of the House for a period of 30 sitting days starting on 4 September 2018”.
10:30am update: Irish government to discuss contingency plans for a hard Brexit
Foreign Minister Simon Coveney will present a paper to the cabinet where he will outline preparations for all scenarios.
Mr Coveney said: “Different scenarios trigger different responses and some of our ‘no deal’ planning will have to remain confidential for now, given that negotiations are ongoing.”
He is due to say that more customs officers will be needed in Ireland regardless of the Brexit deal.
10am update: Tory Anna Soubry calls for a cross-party government to handle Brexit
Ms Soubry said the Prime Minister has lost control of the party.
She said: “I personally would abandon the Labour frontbench and I would reach beyond it and I would encompass Plaid Cymru, the SNP and other sensible, pragmatic people who believe in putting this country’s interests first and foremost.”
8:45am update: May prepares for day of attacks and jibes
The Prime Minister will be in the House of Commons at midday for the final PMQs before the summer break.
She is likely to be attacked by Jeremy Corbyn on the civil war engulfing her party.
Mrs May is then due before the Commons liaison committee at 3pm where she is due to be quizzed further particularly by the chair Sarah Wollaston.
8.15am update: Barnier has sympathy for May ahead of Raab meeting
The EU’s Brexit negotiator Michel Barnier will meet the new UK Brexit Secretary Dominic Raab this week for the first time.
Mr Raab will be eagerly anticipated by Mr Barnier in the hope of accelerating negotiations in order to complete the withdrawal agreement in time for the October deadline.
Mr Barnier has said that he has sympathy for Mrs May’s political crisis and said he sees the White Paper as forming the basis of serious negotiations.
He has said that he is understanding of the problems faced by Mrs May in Westminster due to his own “political background” and is keen to work around them as to ensure the stability of the UK Government.