A senior Nissan boss has blasted Brexit "uncertainty" as he confirmed that the company has scrapped plans to build the new X-Trail 4x4 vehicle at its Sunderland plant.

Gianluca de Ficchy, the Japanese firm's Europe chairman, said that the decision had been taken for "business reasons" affected by rules on diesel engines and reduced sales.

The announcement that the X-Trail would be built in Japan was made in a letter to staff that followed a day of political rows between Brexit supporters and opponents over the reason for one of Wearside's largest employers reneging on a 2016 decision to build the car there.

In the letter Mr de Ficchy said: "Today's announcement will be interpreted by a lot of people as a decision related to Brexit.

"We have taken this decision for the business reasons I've explained but, clearly, the uncertainty around the UK's future relationship with the EU is not helping companies like ours to plan for the future."

Sharon Hodgson, the area's Labour MP, said: "This is a great loss of future investment in Sunderland and I am sure that people will share my huge disappointment and concern at this news.

"Tomorrow, I will be seeking answers from Government ministers as a matter of urgency". This is expected to mean the Opposition will push for an Urgent Question in the Commons.

Steve Bush, Unite's acting national officer for the car sector, said: "This is very disappointing news for Sunderland and the North East and reflects the serious challenges facing the entire UK auto sector."

He added that the union remained "seriously concerned" that the apprenticeships and additional jobs which came with future investment and which the community so desperately needed would now be lost.

The announcement came as two senior Cabinet ministers rejected the idea of the UK remaining in a customs union as the price of getting a Brexit deal.

Labour wants the UK to remain in some sort of customs union as part of a Withdrawal Agreement.

But Sajid Javid, the Home Secretary, said that he believed that Tory backbenchers would kill off such a plan even if it managed to attract Labour support in the Commons.

He told the BBC's Andrew Marr Show he did not support agreeing to remain in some sort of customs union and questioned support for such a plan.

"In principle, I am totally against a customs union because it would not deliver on Brexit because we need to be able to have our own independent trade policy. That is number one.

"Practically, I don't think it would get a majority because whilst you might gain some Labour votes…you would also lose votes on the Conservative side.

"I don't actually think you would get a majority so it's a complete non-starter and if Jeremy Corbyn is serious he should start having serious talks with the Prime Minister in the national interest," added the Secretary of State.

His Cabinet colleague, Liam Fox, asked on Sky's Ridge on Sunday programme whether or not he could "stomach" a customs union to achieve a deal, replied: "No."

Their interventions came after Theresa May had said she would be "battling for Britain" when she returns to Brussels to seek a "pragmatic" Brexit deal that can win over both the European Union and her own MPs.

Writing in the Sunday Telegraph, the Prime Minister suggested that the Labour leader had agreed with her that the Irish border backstop as set out in the Withdrawal Agreement had to change.