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David Davis to give trade deals pledge amid Brexit row David Davis to give trade deals pledge amid Brexit row
(35 minutes later)
David Davis will insist the UK will be able to negotiate trade deals as soon as it leaves the EU in March 2019 later, amid a Tory party row over the government's approach to Brexit.David Davis will insist the UK will be able to negotiate trade deals as soon as it leaves the EU in March 2019 later, amid a Tory party row over the government's approach to Brexit.
On Thursday, Chancellor Philip Hammond called for changes in the EU relationship to be "very modest".On Thursday, Chancellor Philip Hammond called for changes in the EU relationship to be "very modest".
But Eurosceptic MP Jacob Rees-Mogg accused UK negotiators of being "cowed by the EU".But Eurosceptic MP Jacob Rees-Mogg accused UK negotiators of being "cowed by the EU".
No 10 has distanced itself from the chancellor's comments.No 10 has distanced itself from the chancellor's comments.
A Downing Street spokesman said: "While we want a deep and special economic partnership with the EU after we leave, these could not be described as very modest changes."A Downing Street spokesman said: "While we want a deep and special economic partnership with the EU after we leave, these could not be described as very modest changes."
The UK is due to leave the European Union on 29 March 2019, after which the UK is expected to negotiate its own trade deals, rather than being part of the deals drawn up on behalf of all EU member states.The UK is due to leave the European Union on 29 March 2019, after which the UK is expected to negotiate its own trade deals, rather than being part of the deals drawn up on behalf of all EU member states.
But a time-limited transitional or "implementation" period - thought likely to last up to two years - is expected to come into force first, before the terms of the UK's ultimate relationship with the EU have been finalised, to avoid a "cliff edge" for businesses.But a time-limited transitional or "implementation" period - thought likely to last up to two years - is expected to come into force first, before the terms of the UK's ultimate relationship with the EU have been finalised, to avoid a "cliff edge" for businesses.
In a speech in Middlesbrough later, Mr Davis will say that the UK would still effectively follow the rules of the EU customs union for the period and no trade deals could come into force until it ends.In a speech in Middlesbrough later, Mr Davis will say that the UK would still effectively follow the rules of the EU customs union for the period and no trade deals could come into force until it ends.
"As an independent country - no longer a member of the European Union - the United Kingdom will once again have its own trading policy," he will say."As an independent country - no longer a member of the European Union - the United Kingdom will once again have its own trading policy," he will say.
"For the first time in more than 40 years, we will be able to step out and sign new trade deals with old friends, and new allies, around the globe.""For the first time in more than 40 years, we will be able to step out and sign new trade deals with old friends, and new allies, around the globe."
He is also expected to say the UK wants to stay in the EU's existing trade deals with other countries - although there is no guarantee Brussels will agree.He is also expected to say the UK wants to stay in the EU's existing trade deals with other countries - although there is no guarantee Brussels will agree.
'Welcome to the next phase' Tories' Brexit agonies resurface
By BBC political editor Laura KuenssbergBy BBC political editor Laura Kuenssberg
The Brexit process never went away. But the beavering of officials has rather less political intrigue to it than the interventions of the Brexit big beasts. If the Tory party had wanted intentionally to display just how divided they are over Brexit and how generally twitchy they are, they could hardly have done a better job.
Well, nipping in before the EU publishes its official approach to part two of the saga on Monday, David Davis will tomorrow have a big moment of his own. Not in off-the-cuff remarks but in scripted comments, one of the most convinced Brexit "softies" in the Cabinet, the chancellor himself, told delegates in Davos that he believed, hopefully, that the changes between the EU and UK economies would be "very modest", as we leave the European bloc.
Ministers have, after vigorous lobbying from business, accepted that not very much will change as the clock strikes midnight on Brexit day. Meanwhile, the emboldened voice of backbench Brexiteers, Jacob Rees-Mogg, had prepared a speech of his own, accusing ministers of being cowed by the EU and calling for the government to stiffen its sinews in the Brexit talks or risk letting down voters and opting only for a "managed decline".
The PM has already made clear that we will broadly accept the existing rules and regulations, and ministers agree that although we will officially be outside the single market free trade area and the customs union, we'll replicate those arrangements so that industry isn't dealing with dramatic overnight change. Before you switch off from this neat, yet predictable demonstration of the division inside the governing party, remember it matters because it will shape the decisions that are made about the country's relationship with the EU in years to come, which will have an impact on all of our lives.
But the more precise nature of the period between 2019 and 2021 is not that clear. And there is brewing anxiety among Theresa May's Brexiteer base that what was billed originally as an implementation phase, where we move from one system to another, will be more like two years stuck in aspic. And it constrains Theresa May's ability to keep the show on the road.
She has, since moving into Number 10, had to balance the two wings of her party, and particularly pay attention to the Brexiteers.
Read more from Laura Kuenssberg's blog here.Read more from Laura Kuenssberg's blog here.
'Stick to script''Stick to script'
Speaking at the World Economic Forum in Davos on Thursday, Mr Hammond said the UK and EU economies were already "completely interconnected and aligned" and the government was not seeking an "off-the-shelf" model to replace the membership of the EU single market and customs union.Speaking at the World Economic Forum in Davos on Thursday, Mr Hammond said the UK and EU economies were already "completely interconnected and aligned" and the government was not seeking an "off-the-shelf" model to replace the membership of the EU single market and customs union.
Meanwhile, Mr Rees-Mogg, who has recently become the chairman of the European Research Group of Tory MPs, called for a fundamental change in ministers' tone on Brexit.Meanwhile, Mr Rees-Mogg, who has recently become the chairman of the European Research Group of Tory MPs, called for a fundamental change in ministers' tone on Brexit.
The Eurosceptic backbencher - who also questions whether any transition period would allow the UK to leave the EU in 2019 - said a "close alignment" post-Brexit would be unacceptable and warned against leaving being treated like a "damage limitation exercise".The Eurosceptic backbencher - who also questions whether any transition period would allow the UK to leave the EU in 2019 - said a "close alignment" post-Brexit would be unacceptable and warned against leaving being treated like a "damage limitation exercise".
People "did not vote for the management of decline", he said, adding: "They voted for hope and opportunity and politicians must now deliver it."People "did not vote for the management of decline", he said, adding: "They voted for hope and opportunity and politicians must now deliver it."
Other Conservative colleagues also took to social media to show their dismay at the chancellor's comments.Other Conservative colleagues also took to social media to show their dismay at the chancellor's comments.
Andrew Percy told Mr Hammond to "put a sock in it" on Instagram, accusing him of "writing his own Brexit policy.Andrew Percy told Mr Hammond to "put a sock in it" on Instagram, accusing him of "writing his own Brexit policy.
Whilst Connor Burns took a more subtle dig on his Twitter account:Whilst Connor Burns took a more subtle dig on his Twitter account:
Bernard Jenkin told the BBC: "I think it would be much easier for the prime minister to do her job if everyone just stuck to her script and I think that is what he should do."Bernard Jenkin told the BBC: "I think it would be much easier for the prime minister to do her job if everyone just stuck to her script and I think that is what he should do."
And a cabinet source said: "The UK is leaving the EU - the sooner Hammond realises that the better. Very modest changes are not what the 52% voted for."And a cabinet source said: "The UK is leaving the EU - the sooner Hammond realises that the better. Very modest changes are not what the 52% voted for."
Mr Hammond later took to Twitter himself to say he was "clear" that the UK would leave both the single market and customs union after Brexit.Mr Hammond later took to Twitter himself to say he was "clear" that the UK would leave both the single market and customs union after Brexit.
There was better news for the government in Davos, with US President Donald Trump predicting a "tremendous increase" in UK-US trade in years to come.There was better news for the government in Davos, with US President Donald Trump predicting a "tremendous increase" in UK-US trade in years to come.
"We look forward to that and we are starting that process, pretty much as we speak," he said."We look forward to that and we are starting that process, pretty much as we speak," he said.