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Theresa May Brexit speech to be 'open and generous offer' to EU Two-year Brexit transition deal 'discussed at marathon Cabinet'
(about 1 hour later)
Theresa May's speech on Brexit in Italy on Friday will represent an "open and generous offer" to the rest of the EU, a cabinet minister has told the BBC. Ministers have discussed the possibility of a transition deal with the EU of up to two years, a Cabinet source has told BBC News.
It is thought that might include a guarantee that no EU country would lose out from changes to the EU's current budget as a result of the UK leaving. Prime Minister Theresa May is also expected to make an "open and generous" cash offer to the rest of the EU in a bid to unblock Brexit talks.
But another minister warned against offering too much money, saying "it's our only leverage". She will announce the details in a speech in Italy on Friday.
Mrs May briefed her cabinet on Thursday morning about the speech. Mrs May briefed her top team on what she will say at a marathon two and a half hour Cabinet meeting.
The event in Florence is being seen as an attempt to break the deadlock on the negotiations, with the EU unhappy at the lack of progress on agreeing the UK's "divorce bill" from Brussels. Foreign Secretary Boris Johnson and Chancellor Philip Hammond - seen as being at opposing ends of cabinet views on Brexit - emerged from the meeting together in a show of unity for waiting reporters.
The cabinet meeting - which at two and a half hours was much longer than usual - came amid reports of ministerial splits over Brexit. BBC Political Editor Laura Kuenssberg said a source had told her there was broad agreement on the contents of the prime minister's speech.
Foreign Secretary Boris Johnson was accused of undermining the PM with a 4,000-word article about Brexit. Ministers were given copies of the draft speech to read for 30 minutes before the meeting got under way.
He subsequently denied reports he planned to resign if his blueprint was not followed and described the government as "a nest of singing birds". Although there could yet be some tweaks to the final offer to be made in Florence on Friday it is understood the prime minister is likely to rule out a loose "Canada style" trade deal as a model for the UK and EU, the source said.
The foreign secretary and prime minister travelled back from the United Nations in New York on the same flight on Wednesday night. But nor is she expected to advocate an "EEA minus" type of arrangement, which would not end free movement and retain many EU laws, as some Brexiteers have feared.
And in a carefully orchestrated show of unity Mr Johnson and Chancellor Philip Hammond - often seen to represent different views on Brexit - left No 10 together, smiling to waiting reporters. The Florence speech is being seen as an attempt to break the deadlock on the negotiations, with the EU unhappy at the lack of progress on agreeing the UK's "divorce bill" from Brussels.
Mrs May is thought likely to offer a guarantee that no EU country would lose out from changes to the EU's current budget as a result of the UK leaving.
Debate ahead of the speech has focused on the detail of the time-limited transition period after Brexit, how much the UK will pay as it leaves, and whether it will continue contributing to EU budgets in years to come.Debate ahead of the speech has focused on the detail of the time-limited transition period after Brexit, how much the UK will pay as it leaves, and whether it will continue contributing to EU budgets in years to come.
So far, the government has said the UK will honour its commitments but that the days of "giving huge sums of money" are over.So far, the government has said the UK will honour its commitments but that the days of "giving huge sums of money" are over.
Downing Street has also described as "speculation" a Financial Times report that chief Brexit "sherpa" Olly Robbins, who reports directly to Mrs May, had told Germany she will offer to pay £20bn in the period up to 2020 to cover gaps in the budget left by the UK's departure. Downing Street has also described as "speculation" a Financial Times report that the top civil servant at the Brexit talks, Olly Robbins, who reports directly to Mrs May, had told Germany she will offer to pay £20bn in the period up to 2020 to cover gaps in the budget left by the UK's departure.
The fourth round of Brexit negotiations begins on 25 September, with the UK due to leave the EU in March 2019.The fourth round of Brexit negotiations begins on 25 September, with the UK due to leave the EU in March 2019.
Analysis - By BBC Political Editor Laura KuenssbergAnalysis - By BBC Political Editor Laura Kuenssberg
We are one of the biggest contributors to the EU pot, so leaving dents the planned financial arrangements if we just go and take our cheque book with us.We are one of the biggest contributors to the EU pot, so leaving dents the planned financial arrangements if we just go and take our cheque book with us.
If that is the promise that is roughly to the tune of £20bn, although it would be surprising if Theresa May named a figure herself - it's not her style and any actual numbers will be subject to far-off negotiations.If that is the promise that is roughly to the tune of £20bn, although it would be surprising if Theresa May named a figure herself - it's not her style and any actual numbers will be subject to far-off negotiations.
But in terms of the bill, that could just be the start of it. Plugging the hole in the current budget doesn't deal with what the EU sees as our long-term obligations - whether that's diplomats' pensions or our share of money that's been loaned to other countries.But in terms of the bill, that could just be the start of it. Plugging the hole in the current budget doesn't deal with what the EU sees as our long-term obligations - whether that's diplomats' pensions or our share of money that's been loaned to other countries.
Read Laura's full blogRead Laura's full blog
The UK is keen to intensify their pace and open discussions on the country's future relationship with the EU, including trade, as soon as possible. The UK is keen to intensify the pace of the talks and open discussions on the country's future relationship with the EU, including trade, as soon as possible.
But this cannot happen until the EU deems sufficient progress has been made on the initial subjects being discussed, including the UK's financial settlement.But this cannot happen until the EU deems sufficient progress has been made on the initial subjects being discussed, including the UK's financial settlement.
The two sides are also trying to reach agreement on the status of UK and EU expats after Brexit, and the impact of Brexit on the Northern Ireland border.The two sides are also trying to reach agreement on the status of UK and EU expats after Brexit, and the impact of Brexit on the Northern Ireland border.
The pro-European Liberal Democrats called on Mrs May to clamp down on Cabinet dissent by sacking Boris Johnson and to use her Florence speech to "drop her reckless insistence that no deal is better than a bad deal".The pro-European Liberal Democrats called on Mrs May to clamp down on Cabinet dissent by sacking Boris Johnson and to use her Florence speech to "drop her reckless insistence that no deal is better than a bad deal".
The party's Brexit spokesman Tom Brake said: "This a chance for the prime minister to show she's listened to the message sent by voters at the election and to seek a Brexit deal that has majority support in the country.The party's Brexit spokesman Tom Brake said: "This a chance for the prime minister to show she's listened to the message sent by voters at the election and to seek a Brexit deal that has majority support in the country.
"That should include staying in the single market, separating the issue of EU nationals' rights so they are not used as bargaining chips, and giving the public a vote on the final deal.""That should include staying in the single market, separating the issue of EU nationals' rights so they are not used as bargaining chips, and giving the public a vote on the final deal."