Brexit: Theresa May claims new sense of optimism in talks
Brexit deal is a 'gentleman's agreement' says EU
(about 3 hours later)
Theresa May will tell MPs there is a new "sense of optimism" in the Brexit talks after her last-minute deal aimed at moving them to the next phase.
The agreement to move Brexit talks on to the next phase is not strictly legally binding but the two sides have "shaken hands" on it, the EU has said.
She will say she expects EU leaders to agree to start talks about future trade and security at a summit on Thursday.
The European Commission said the UK had endorsed the "gentleman's agreement" between David Davis and Michel Barnier.
The PM will insist she did not cave in to Brussels over the so-called divorce bill and "alignment" with EU laws.
On Sunday the Brexit Secretary said guarantees on the Northern Ireland border were not legally binding unless the two sides reached a final deal.
But Lib Dem leader Vince Cable said the EU had "effectively ruled out" the type of trade agreement that the UK wanted.
But he told LBC Radio on Monday they would be honoured whatever happened.
The Lib Dem leader said rather than aiming for a "weak" free trade deal modelled on the one Canada has with the EU, the UK should be staying in the single market and customs union on a permanent basis.
The BBC's assistant political editor Norman Smith said the Brexit Secretary's clarification - in which he insisted one of the government's key aims was to ensure that the Northern Ireland peace process was not harmed - came among concerns in Dublin about the enforceability of Friday's phase one agreement.
Mr Davis said he had been taken out of context when he appeared to tell the BBC's Andrew Marr that guarantees designed to avoid a hard border on the island of Ireland were a "statement of intent".
"What I actually said yesterday in terms was, we want to protect the peace process, want to protect Ireland from the impact of Brexit for them," he said.
"I said this was a statement of intent which was much more than just legally enforceable. Of course it's legally enforceable under the withdrawal agreement but even if that didn't happen for some reason, if something went wrong, we would still be seeking to provide a frictionless invisible border with Ireland."
A European Commission spokeswoman said the first-phase deal on the Northern Ireland border, the divorce bill and citizens' rights did not strictly have the force of law.
"But we see the joint report of Michel Barnier and David Davis as a deal between gentlemen and it is the clear understanding that it is fully backed and endorsed by the UK government."
She added: "President Juncker had a meeting with Prime Minister May last Friday morning to ascertain that this is precisely the case. They shook hands."
A clause inserted in Friday's agreement at the insistence of the Republic of Ireland government says the UK would have full "regulatory alignment" with the EU in some areas if it leaves the EU without a deal.
Theresa May will tell MPs later there is a new "sense of optimism" in the Brexit talks after her last-minute deal aimed at moving them to the next phase.
She will say she expects EU leaders to agree to start talks about future trade and security at a summit on Thursday and insist she did not cave in to Brussels over the so-called divorce bill and "alignment" with EU laws.
The UK is due to leave the EU in March 2019 but wants a two-year transition period after that date, with continued access to the single market to allow businesses to adjust.
The UK is due to leave the EU in March 2019 but wants a two-year transition period after that date, with continued access to the single market to allow businesses to adjust.
That is expected to be the focus of the next round of talks in Brussels in the new year, before discussions can start on a free trade agreement.
That is expected to be the focus of the next round of talks in Brussels in the new year, before discussions can start on a free trade agreement.
Updating MPs in Parliament, Mrs May will say that "some doubted we would reach this stage".
She will argue that Friday's phase-one agreement with the European Commission was consistent with her earlier statements on leaving the single market and customs union and regaining control of borders.
"I have always been clear that this was never going to be an easy process," she will say. "It has required give and take for the UK and the EU to move forwards together. And that is what we have done."
'Hard border'
The EU would not agree to move forward with talks until the UK agreed on a figure for its divorce bill.
The Treasury indicated on Friday that it would be between £35bn and £39bn, paid over four years.
The sticking point on the Northern Ireland border was also addressed, with both sides vowing to prevent the return of a "hard border".
But a clause inserted at the insistence of the Republic of Ireland government says the UK would have full "regulatory alignment" with the EU in some areas if it leaves the EU without a deal.
Some have interpreted this as a victory for a "soft" Brexit, that would see the UK continue to be closely aligned with the EU single market and customs union but unable to strike its own trade deals.
Brexit Secretary David Davis said the chances of the UK exiting without a deal had "dropped dramatically" following Friday's statement.
But he said if the UK did leave without a deal, the agreement on the border was not "legally enforceable" - and Britain would not pay any money to the EU.
'Norway option'
He said he wanted an "overarching" free trade deal without tariff barriers, which he described as "Canada plus plus plus" a reference to the free trade deal struck between Canada and the EU, which took seven years to complete.
Mr Davis said the UK could negotiate a similar deal, but one crucially which also included financial services in the tariff-free area, in a much shorter time.
"We are already at the point where all of our product standards are the same as the EU," he told LBC Radio.
"Countries like Chile have struck these deals in less than a year. We know precisely what our trade pattern is and what we have to focus on."
But Lib Dem leader Sir Vince Cable told BBC Radio 4's Today programme on Monday that the EU was very unlikely to offer the UK an agreement on different terms.
"The EU has effectively ruled that option out," he said. "The EU has also said if you want a Canadian-style approach you have to link it to all kind of conditions to do with state aid, environmental rules and employment rights which effectively rules out the government's philosophy of taking back control".
His party has tabled an amendment to the EU Withdrawal Bill - also backed by the SNP - which would see the UK follow "the Norway option" and remain as close the EU as possible while not being a member.
Urging Labour MPs and "pragmatic" Tories to support this approach which he said would ensure the UK "stayed aligned with the EU", while not having any say over its rules.
"It is inferior to where we are but it is better than the alternative of not having a close relationship with the EU."
Labour has floated the idea of the UK paying to ensure privileged access to the single market but has ruled out continued membership, saying it wants a post-Brexit partnership with the EU that "retains the benefits of the single market and the customs union".
