Brexit talks - as it happened: Michel Barnier tells UK 'time has come to make a choice' on customs union

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Theresa May has held meetings with the EU’s chief negotiator in London after Downing Street confirmed Britain will “categorically” leave the customs union after Brexit.

After speaking with the Prime Minister over a working lunch, Michel Barnier then held a brief press conference with the Brexit Secretary David Davis.

He warned Ms May that trade barriers are “unavoidable” if she carries out her plan to leave the customs union, adding that “the time has come to make a choice”.

Mr Barnier also appeared to rebuff Mrs May’s apparent attempt to deny full settlement rights to EU citizens who arrive in the UK after Brexit day – but before the end of a transition period.

It comes as the Prime Minister prepares to meet her 11-member Brexit war-cabinet later this week to thrash out the Government’s vision for the so-called “end state”.

Reassuring Conservative Brexiteers on Sunday evening a Downing Street source insisted the UK would “categorically [be] leaving the customs union” after reports that Ms May had softened her stance.

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Key Points

• Downing Street says UK is 'categorically leaving the customs union'
• Theresa May to meet EU Brexit chief Michel Barnier on rare London visit
• Brexit biggest threat to NHS, say 100 MPs, MEPs and peers
• Number of EU students applying to UK universities rises despite Brexit fears

[5 February 2018 08:27 · Ashley Cowburn]

[5 February 2018 08:31 · Ashley Cowburn]

[5 February 2018 08:32 · Ashley Cowburn]

[5 February 2018 08:44 · Ashley Cowburn]

Liberal Democrat leader Sir Vince Cable has called for a new "ring-fenced" tax specifically to pay for the NHS and social care.

The new levy - which could replace national insurance - forms the central recommendation of an expert report commissioned by the Lib Dems on future healthcare funding in England.

Launching the document, Sir Vince - who has faced criticism for a lack of policy initiatives since becoming leader last year - said there was growing recognition that healthcare needed a protected funding stream.

"This specialist report provides some convincing answers on arguably the greatest domestic crisis facing the country - how to deal with the severe pressures on health and social care services," he said.

"We must never again be in a position whereby funding is so short that more than 50,000 operations have had to be postponed over the course of a single month.

"The health and care budget should be financed by an earmarked tax, which could replace national insurance.

[5 February 2018 08:48 · Ashley Cowburn]

[5 February 2018 09:04 · Ashley Cowburn]

[5 February 2018 09:06 · Ashley Cowburn]

Downing Street has moved to reassure Tory Brexiteers that Theresa May is committed to taking Britain out of the EU customs union, amid growing dissent on her backbenches and speculation she could face a leadership challenge over the issue.

With anger rising among Tory Eurosceptics over suggestions the Prime Minister was considering softening her Brexit stance, Number 10 sources insisted the UK would “categorically [be] leaving the customs union”.

The move by Downing Street came after warnings from senior Brexiteers and reports that anti-EU Tory backbenchers could launch a bid to topple Ms May if she joined pro-EU Cabinet ministers including Philip Hammond, the Chancellor, and Amber Rudd, in advocating an ongoing customs union with the EU.

Reports last week had suggested Downing Street was willing to remain in a union with the EU for goods, but not services. This prompted Liam Fox, the International Trade Secretary, and Jacob Rees-Mogg, chair of the influential European Research Group of Tory backbenchers, to argue that doing so would prevent the UK making new trade deals with other countries.

The confusion deepened on Friday when a Downing Street spokesman confirmed Ms May was keeping “an open mind” on the matter and, speaking during a trip to China, the Prime Minister refused to rule out the option of remaining in some kind of customs union with the EU.

However, as rumours mounted of a potential Breixteer coup to instal Boris Johnson as Prime Minister with Michael Gove as his deputy and Mr Rees-Mogg as Chancellor, Number 10 moved to calm matters last night.

A Downing Street source said: “To put this to rest, we are categorically leaving the customs union. 

“At home, Brexit is about taking back control of our money, laws and borders. We are going to deliver that, but Brexit is also about the freedom to strike out into the world and sign our own trade deals. We want a good, deep trade deal with the EU and customs arrangement which are as frictionless as possible.”

[5 February 2018 09:27 · Ashley Cowburn]

[5 February 2018 09:47 · Ashley Cowburn]

[5 February 2018 10:04 · Lizzy Buchan]

Migrants from outside Europe will see the annual fees for using the NHS double under new plans, the Government has announced.

Upfront charges for the health service will rise from £200 to £400 each year for overseas visitors who stay in the UK for six months or longer, which ministers say will generate an extra £220m a year for the NHS.

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