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Theresa May: Conservatives and DUP expect to seal deal Theresa May and DUP deal could be delayed until next week
(about 1 hour later)
Theresa May is holding talks to finalise a deal with the Democratic Unionists to support a minority Conservative government. The Conservatives are holding talks with the DUP about backing a minority government - but any announcement is set to be put back because of the unfolding tragedy of the Grenfell Tower blaze, the BBC understands.
DUP leader Arlene Foster said she hoped an agreement would be reached today. DUP sources told the BBC the two sides were close to reaching agreement and the talks were not in trouble.
Issues like Brexit, the economy, taxation and counter-terrorism measures have been discussed by the two parties. But the London tower block fire made any announcement on Wednesday "inappropriate" and diary commitments meant finalisation of any deal could be delayed until next week.
Labour warned a deal could destabilise the Northern Ireland peace process and said it was ready to form an alternative minority government. Such a delay would mean the Queen's Speech, which had originally been planned for next Monday, could be delayed by at least a week and it could also delay the start of Brexit talks.
The DUP source told BBC assistant political editor Norman Smith that Mrs May and DUP leader Arlene Foster were now finalising the "terms and conditions" of the agreement.
The Conservatives are having to rely on the support of 10 DUP MPs after they fell eight seats short of winning an overall majority at the general election.The Conservatives are having to rely on the support of 10 DUP MPs after they fell eight seats short of winning an overall majority at the general election.
It means that Theresa May will remain as prime minister and the DUP MPs will be central to the survival of a Conservative Party administration. It means that Mrs May will remain as prime minister and the DUP MPs will be central to the survival of a Conservative Party administration.
The party will offer support for key votes like backing the Queen's Speech, the Budget and any votes of no confidence. What's in the deal?
By BBC Northern Ireland Political Editor Mark Devenport
The DUP have been playing their cards close to their chest, but we know the areas they're talking about as this has been subject to a DUP plan drawn up in 2015 in the event of the hung parliament.
Things have moved on a bit since then with Brexit, but we do know they're looking at trying to lower the cost to the Northern Ireland executive of any move on corporation tax.
They've been of the view that leaving the EU should lessen some of the stipulations in relation to state aid which were being applied by the Treasury to Northern Ireland and that might take down the bill that the Treasury would put on the executive if corporation tax was lowered.
We know other matters such as cutting Air Passenger Duty and increased infrastructure spending have been discussed but we haven't got any sense of the exact details of the deal. I suspect it will be top loaded with economics matters rather than political matters.
Some political issues like altering the definition of a Troubles victim or doing away with allowances for MPs who don't take up their seats might be included. Other legacy matters such as protecting former soldiers or police officers from prosecution may feature at later stage.
The DUP will offer support for key votes like backing the Queen's Speech, the Budget and any votes of no confidence.
The DUP campaigned for Brexit but is also conscious that 56% of people in Northern Ireland voted to remain in the EU.The DUP campaigned for Brexit but is also conscious that 56% of people in Northern Ireland voted to remain in the EU.
They are thought to be advocating a softer Brexit that does not disrupt the "frictionless border" with the Republic of Ireland. They are thought to be advocating a Brexit that does not disrupt the "frictionless border" with the Republic of Ireland.
They are also opposed to Conservative polices such as means-testing the winter fuel allowance and have campaigned for a higher living wage and an end to the so-called bedroom tax.They are also opposed to Conservative polices such as means-testing the winter fuel allowance and have campaigned for a higher living wage and an end to the so-called bedroom tax.
The party is also likely to push for more investment in Northern Ireland, with emphasis on increased borrowing powers and looser budget controls rather than direct cash.The party is also likely to push for more investment in Northern Ireland, with emphasis on increased borrowing powers and looser budget controls rather than direct cash.
Prime Minister Theresa May said on Tuesday that talks with the DUP had been productive and that Brexit negotiations would begin as planned next week.Prime Minister Theresa May said on Tuesday that talks with the DUP had been productive and that Brexit negotiations would begin as planned next week.
"I think there is a unity of purpose among people in the United Kingdom," Mrs May said following a meeting with French President Emmanuel Macron in Paris."I think there is a unity of purpose among people in the United Kingdom," Mrs May said following a meeting with French President Emmanuel Macron in Paris.
The agreement with the DUP is expected to be very different to the coalition deal agreed between the Conservatives and Lib Dems in 2010, with DUP politicians not getting cabinet jobs and their support for the majority of new legislation to be determined on a vote-by-vote basis.The agreement with the DUP is expected to be very different to the coalition deal agreed between the Conservatives and Lib Dems in 2010, with DUP politicians not getting cabinet jobs and their support for the majority of new legislation to be determined on a vote-by-vote basis.
Labour's shadow business secretary Rebecca Long-Bailey called it a "very dangerous deal" and said Labour was "ready and waiting to form a minority government".Labour's shadow business secretary Rebecca Long-Bailey called it a "very dangerous deal" and said Labour was "ready and waiting to form a minority government".
She dismissed accusations of hypocrisy after it emerged that Gordon Brown had tried to do a deal with the DUP in 2010, telling BBC Radio 4's Today programme: "It's certainly not something that Jeremy would advocate and the Labour Party is certainly not advocating that.She dismissed accusations of hypocrisy after it emerged that Gordon Brown had tried to do a deal with the DUP in 2010, telling BBC Radio 4's Today programme: "It's certainly not something that Jeremy would advocate and the Labour Party is certainly not advocating that.
"As I've said, it would create a lot of instability in terms of the peace process in Northern Ireland and it's a very worrying time."As I've said, it would create a lot of instability in terms of the peace process in Northern Ireland and it's a very worrying time.
"It just illustrates the chaos that the Conservative Party are in at the moment.""It just illustrates the chaos that the Conservative Party are in at the moment."
On Tuesday, ex-Conservative PM Sir John Major said he was "dubious" about the idea and its impact on the peace process.On Tuesday, ex-Conservative PM Sir John Major said he was "dubious" about the idea and its impact on the peace process.
Sir John told BBC Radio 4's World at One there was a danger the government would no longer be seen as an "impartial honest broker" in restoring the power-sharing arrangements and upholding Northern Ireland institutions.Sir John told BBC Radio 4's World at One there was a danger the government would no longer be seen as an "impartial honest broker" in restoring the power-sharing arrangements and upholding Northern Ireland institutions.
Asked about Sir John's comments, Mrs May said she was "absolutely steadfast" in her support for the 1998 Good Friday Agreement - which created the Northern Ireland Assembly - and efforts to revive the power-sharing executive.Asked about Sir John's comments, Mrs May said she was "absolutely steadfast" in her support for the 1998 Good Friday Agreement - which created the Northern Ireland Assembly - and efforts to revive the power-sharing executive.