Theresa May will today warn Brussels that relations could break down for years if it tries to punish Britain with a bad Brexit deal.
Outlining five tests against which the final deal will be judged, the Prime Minister will pledge to deliver ‘real change’, saying any agreement must ‘respect the result of the referendum’ and give the UK ‘control of our borders, laws and money’.
But she will also warn that it must be fair to both sides if it is to endure, and that the worst outcome would be to ‘find ourselves back at the negotiating table because things have broken down’.
In an upbeat assessment, Mrs May will say she wants to strike a trade deal more comprehensive than currently exists ‘anywhere in the world today’.
Theresa May, pictured greeting Donald Tusk on the steps of Downing Street yesterday, will warn Brussels that relations could break down for years if it tries to punish Britain over Brexit
Outlining five tests against which the final deal will be judged, the Prime Minister will pledge to deliver ‘real change’ in a key speech today. She spoke with Mr Tusk yesterday
The speech comes at a critical moment, with senior European Union figures warning that negotiations could be derailed by Mrs May’s ‘red lines’.
Government sources last night insisted that she remains committed to leading the UK out of the customs union, single market and jurisdiction of the European Court of Justice.
But after a week in which the PM has come under intense pressure from establishment figures to soften her stance, pro-Brexit MPs are on red alert for any sign of backsliding.
Brexit Secretary David Davis and Foreign Secretary Boris Johnson yesterday used a two-hour Cabinet meeting about the speech to demand the removal of a line making a ‘binding commitment’ to align with EU rules and regulations in certain sectors.
The two Brexiteers are said to have feared the commitment could shackle parts of the economy to Brussels forever – making a mockery of the referendum pledge to ‘take back control’.
One Cabinet source said the phrase had not been approved by members of the PM’s Brexit ‘war cabinet’ at their Chequers meeting last week and appeared to have been slipped in by civil servants.
However, Mrs May is expected to agree to abide by the EU’s state aid rules, which are designed to prevent governments subsidising uncompetitive industries.
Downing Street played down the row, saying the Cabinet had agreed the speech was ‘a real step forward’ ahead of the start of trade talks with Brussels later this month. Sources said Mrs May’s speech would set out an ‘ambitious but credible’ vision for a comprehensive partnership with the EU after Brexit.
Speaking at Mansion House in the City of London, she will insist the two sides have a ‘shared interest’ in getting it right. She will say: ‘I want the broadest and deepest possible agreement – covering more sectors and co-operating more fully than any free trade agreement anywhere in the world today.
‘I believe that is achievable because it is in the EU’s interests, as well as ours, and because of our unique starting point, where on day one we both have the same laws and rules. So rather than having to bring two different systems closer together, the task will be to manage the relationship.’
The PM will spell out her vision of a UK that is a ‘champion of free trade based on high standards… building a bold and comprehensive economic partnership with our neighbours in the EU, and reaching out beyond to foster trade agreements with nations across the globe’. But she will also warn that Brexit must lead to ‘wider change’ in society so that ‘no community in Britain [will] ever be left behind again’.
Today’s speech was set to be delivered in Newcastle to underline Mrs May’s determination to make Brexit work for the whole country. It was moved to the capital because of the weather disrupting travel conditions.
The speech follows weeks of negotiations between senior Cabinet ministers over how far to go in sacrificing Britain’s new freedoms in order to maintain trade in key sectors linked to the European economy.
The Prime Minister will say the deal must ‘protect people’s jobs and security’, adding: ‘People in the UK voted for our country to have a new and different relationship with Europe, but while the means may change our shared goals surely have not – to work together to grow our economies and keep our people safe.’
Sources last night said the tone of the speech would be ‘emollient’, despite Mr Davis warning this week that Britain’s £40billion ‘divorce’ bill could be axed if the EU tries to cross the UK’s red lines on issues such as the Irish border.
One source said: ‘The possibility of no deal is still a live thing, but it is not what we are emphasising here.’
European Council president Donald Tusk yesterday insisted ‘frictionless’ trade is impossible outside the customs union. Mrs May will acknowledge the more the UK chooses to diverge, the more trade barriers it will face, but she will insist that it is not in the interests of either side to punish the other.
Week of relentless Remain plotting
The run-up to Theresa May’s Brexit speech today has been dominated by interventions from prominent Remainers.
Senior Tories believe it is a co-ordinated bid to keep Britain in the customs union and single market – or even overturn the result of the referendum altogether.
Jeremy Corbyn confirmed a Labour U-turn on Brexit on Monday, saying the party will back staying in a customs union. He also appealed to Tory rebels to vote with Labour to defeat the Government.
Prominent Remainers have made key interventions in the lead up to Mrs May’s Brexit speech. Jeremy Corbyn said Labour will back staying in a customs union
His policy was swiftly backed by the CBI. On Tuesday former Whitehall mandarin Sir Martin Donnelly told how the economic benefits of leaving the EU will be worth no more than a ‘packet of crisps’.
Shadow Brexit secretary Sir Keir Starmer also held private talks with EU officials in Brussels. Pro-Remain sources leaked a confidential letter from Foreign Secretary Boris Johnson to the Prime Minister, to discredit his views on the Irish border problem.
Wednesday saw former prime minister Sir John Major urging senior Tories to join forces with the opposition and block Brexit. Lord Mandelson praised Sir John and called for a free vote in Parliament on any deal as well as a second referendum.
EU chief negotiator Michel Barnier published controversial plans that could force Northern Ireland to stay in the customs union – effectively breaking up the UK. George Osborne, the former chancellor, tweeted: ‘Why the synthetic Breixteer [sic] anger over EU text on Irish border?’
Yesterday EU Council president Donald Tusk said not joining an EU customs union would make ‘frictionless’ trade impossible. Former prime minister Tony Blair renewed his calls for a second referendum.