Theresa May set out a Brexit strategy that means quitting both the current EU customs union and the single market – with a final deal put to votes in Parliament.
The Prime Minister challenged European leaders with a bold Brexit strategy that will include slashing Britain’s cash payments to Brussels.
Mrs May gave a critical new pledge to the City to avoid a “disruptive cliff-edge” by phasing in changes.
The Pound rose as Mrs May spoke at the Mansion House, central London, delivering a long awaited speech setting out her negotiating strategy in the greatest detail yet.
In a blizzard of announcements the PM:
- Said the Brexit deal “will be put to a vote in both houses of Parliament”, meaning MPs and Peers will have a chance to approve or reject it.
- Made clear she wanted the right to set trade deals outside the EU, which would mean leaving the existing customs unions rules, possibly seeking “associate membership”. She added: “I have an open mind on how we do it. It’s not the means that matter but the ends.”
- Warned European leaders that it would be an “act of calamitous self-harm” if they try to punish Britain for leaving the EU by refusing a fair trade deal.
- Set a deadline of 2019 for Brexit negotiations to be completed, after which there will be unspecified periods for implementation in different areas, such as immigration.
- Indicated that she wants the financial sector to enjoy the extra certainty provided by having its own phasing period during which existing passporting would be maintained.
- Said a common travel area with the Republic of Ireland will be maintained to avert a political crisis in Northern Ireland over the threat posed by Brexit to the open border with the south, providing it does not affect immigration to the mainland.
On the EU budget, Mrs May said: “Because we will not be members of the single market, we will not be required to contribute huge sums to the EU budget.” That suggested the UK is willing to continue paying into EU coffers after Brexit, for example for access to the single market.
