Theresa May will make clear on Tuesday that Britain will make a clean break from the European Union after Brexit, effectively shutting the door on continued membership of the single market and the customs union.
In a speech to foreign diplomats in London, the prime minister will say she wants a new partnership “between an independent, self-governing, global Britain” and the EU.
“Not partial membership of the European Union, associate membership of the European Union, or anything that leaves us half-in, half-out.
“We do not seek to adopt a model already enjoyed by other countries. We do not seek to hold on to bits of membership as we leave,” she will say.
Ms May will signal her determination to strike new trade deals with countries outside the EU, something which would be impossible if Britain remains in the EU’s customs union after Brexit.
"I want us to be a truly global Britain – the best friend and neighbour to our European partners, but a country that reaches beyond the borders of Europe too. A country that gets out into the world to build relationships with old friends and new allies alike.
“I want Britain to be what we have the potential and ambition to be: a great, global trading nation that is respected around the world and strong, confident and united at home,” she will say.
The pound fell to its lowest level against the dollar for three months ahead of the speech, as Britain’s leading business lobby warned of the danger of a “disorderly crash landing”.
Signs that Ms May is preparing to adopt an uncompromising approach to the Brexit talks have alarmed British business and Carolyn Fairbairn, who heads the Confederation of British Industry, warned on Monday of the danger of Britain simply crashing out of the EU with no deal at all.
“The practicalities of a disorderly crash-landing need to be understood. We have had conversations with some of the proponents of just walking away and we will again talk to them about what we see from our members about the consequences of that,” she told the Guardian.
“An exit into WTO at the stroke of midnight without the proper planning and preparation in place would be very serious for the UK economy. There are some signs that there is more conversation around that being an outcome.
“Our job is to demonstrate how difficult that would be because of all of these unanswered questions.”
EU nationals
The Conservative government is considering a two-tier system of immigration controls for EU nationals after Brexit, similar to that which applies to Europeans visiting the US.
Those wishing to work in Britain could apply for a work permit, while other visitors would be subject to automatic, electronic checks, similar to the Esta visa-waiver programme in the US.
The European Commission has proposed a similar electronic system for non-EU visitors to the Schengen zone, which could apply to British passport-holders after Brexit.
Ministers are understood to be divided on the terms of a work permit programme, with some favouring a liberal approach that would allow any EU citizen with a job offer to work in Britain, while others want a more restrictive regime.
The British government on Monday welcomed Donald Trump’s suggestion that a new trade deal between Britain and the US could be negotiated quickly.
“We welcome the commitment to have a deal quickly and it highlights one of the opportunities of leaving the EU.
“We welcome the enthusiasm and energy the president-elect is showing,” the prime minister’s official spokeswoman said.
