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Tory conference: Dominic Raab sets out 'limits' for Brexit compromise No deal Brexit? EU may leave UK with 'no choice', says Dominic Raab
(about 5 hours later)
The UK's willingness to compromise is "not without limits", Brexit Secretary Dominic Raab will warn the EU in a speech to the Conservative conference. The UK could be left with "no choice" but a no-deal Brexit if the EU tries to "lock us in" to a customs union, according to Dominic Raab.
Mr Raab will vow to take a "pragmatic, not dogmatic" approach to the final phase of talks with Brussels. The Brexit secretary will tell his party's conference later that any attempt "via the back door" will be met with the UK walking away.
But if the EU tries to force the UK into accepting a customs union then it will leave without a deal, he will say. He will say the UK's willingness to compromise is "not without limits".
Later, Chancellor Philip Hammond will use his speech to try to outline plans for raising salaries. Later, Chancellor Philip Hammond will attempt to look beyond Brexit in a speech about plans to raise salaries.
These include a £125m package allowing large employers to transfer up to 25% of their apprenticeship levy funds to businesses in their supply chain from April next year. Mr Raab - who has been a vocal supporter of Brexit - will say: "We are leaving the European Union in fact, not just in name.
The apprenticeship levy is a tax on large companies intended to pay for training at smaller companies, but uptake of the new policy has been slow. "If an attempt is made to lock us in via the back door of the EEA [European Economic Area] and customs union... or if the only offer from the EU threatens the integrity of our union, then we will be left with no choice but to leave without a deal."
EU leaders have rejected the Prime Minister's Chequers plan because they believe it would undermine the single market by allowing the UK to "cherry pick" EU law. But he will also use his speech to repeat his backing for Theresa May's Brexit plan - known as Chequers - which has received criticism from both Remainers and Leavers.
"Our proposals would deliver a historic agreement that provides a roadmap out of the EU and a final deal that will be good for the whole country," Mr Raab will say.
What is wrong with Chequers?
Brexiteers feel it keeps the UK far too close to Brussels and doesn't fulfil the promise to "take back control".
EU leaders have rejected it plan because they believe it would undermine the single market by allowing the UK to "cherry pick" from EU law.
Theresa May says the ball is now in their court and she wants a more detailed response from the on their objections.
Labour leader Jeremy Corbyn said last week his party would back Mrs May in Parliament - if she agrees to their plan for a customs union with the EU and a Brexit deal that guarantees workers' rights and protects jobs.Labour leader Jeremy Corbyn said last week his party would back Mrs May in Parliament - if she agrees to their plan for a customs union with the EU and a Brexit deal that guarantees workers' rights and protects jobs.
But Mr Raab will use his conference speech to warn there are limits to the UK's readiness to compromise - and they will not accept a customs union. But Mr Raab will warn there are limits to the UK's readiness to compromise and they will not accept a customs union.
Neither will the government agree to anything that divides Northern Ireland from the rest of the UK or makes the country a member of the European Economic Area (EEA) like Norway. Neither will the government agree to anything that divides Northern Ireland from the rest of the UK or makes the country a member of the EEA like Norway.
He will say: "We are leaving the European Union in fact, not just in name. What will the chancellor say on salaries?
"If an attempt is made to lock us in via the back door of the EEA and customs union... or if the only offer from the EU threatens the integrity of our union, then we will be left with no choice but to leave without a deal." The Remain-backing chancellor, Mr Hammond, will also give a speech to the party conference today, but leave Brexit to his colleague.
Restating his backing for Mrs May's Chequers plan, Mr Raab will say: "Our proposals would deliver a historic agreement that provides a roadmap out of the EU and a final deal that will be good for the whole country." Instead, he will call on Conservatives to convince voters that their policies will "deliver a better tomorrow for them and their families" and warn that slow wage growth and job insecurity means too many people fear they are being left behind.
In his speech, Philip Hammond will attempt to look beyond Brexit, calling on Conservatives to convince voters that their policies will "deliver a better tomorrow for them and their families". Mr Hammond will announce its intention to increase the number of people who can access science and technology courses and spend about £30m on encouraging big business to mentor small firms.
He will warn that slow wage growth and job insecurity mean too many people fear they are being left behind. His plans also include a £125m package allowing large employers to transfer up to 25% of their apprenticeship levy funds to businesses in their supply chain from April next year.
The chancellor will also announce its intention to increase the number of people who can access science and technology courses and spend about £30m on encouraging big business to mentor small firms. The apprenticeship levy is a tax on large companies intended to pay for training at smaller companies, but uptake of the new policy has been slow.
The Conservatives will also announce plans to stop restaurant chains taking tips left for staff by diners.The Conservatives will also announce plans to stop restaurant chains taking tips left for staff by diners.
Rebecca Long Bailey, Labour's shadow business secretary, said: "This is now the fourth policy the Tories have copied from us at their conference.Rebecca Long Bailey, Labour's shadow business secretary, said: "This is now the fourth policy the Tories have copied from us at their conference.
"It's beginning to feel like Groundhog Day.""It's beginning to feel like Groundhog Day."