Theresa May Brexit speech: Prime Minister admits UK will have less access to EU, but demands trade deal on banking - as it happened

Follow all the latest updates as Prime Minister prepares for major speech

Theresa May sets out her five tests any EU deal must pass

Theresa May has outlined her vision for the future UK-EU relationship, as she warned the bloc that refusing to include financial services in a trade deal after Brexit would “hurt” its own economies.

In a major speech at Mansion House in London, she said a deal with Brussels should be the first free trade agreement to cover broadcasting and financial services.

The Prime Minister also said Philip Hammond, the Chancellor, will set out his plans for financial services next week, but said “we are not looking for passporting”.

In an attempt to address the contentious issue of the border between Northern Ireland and the Republic, Ms May said it is the responsibility of the UK Government and the European Commission to find a solution.

She also sought to highlight “tensions” in the EU’s position as she set out “five tests” for the UK’s future relationship with the bloc after withdrawal.

As it happened...

Key Points

• Theresa May warns EU that failure to include financial services in trade deal will hurt them too
• PM tells British public they must "face up to some hard facts"
• UK will seek to remain in EU agencies after Brexit
• May outlines five 'tests' she says Brexit must meet

[2 March 2018 09:48 · Andrew Griffin]

Speaking at the Mansion House in the City of London - after the venue was switched from the North East due to the weather conditions - Mrs May will be setting out "five tests" to guide Britain's approach to the continuing negotiations.

They are:

- The agreement must respect the outcome of the referendum vote to "take control of our borders, laws and money".

- The agreement must endure, without the need to return to the negotiating table "because things have broken down".

- It must protect jobs and security, with Britain and the EU continuing to pursue the "shared goals" of growing their economies while keeping their people safe.

- It must be consistent with Britain remaining "a modern, open, outward-looking, tolerant, European democracy" that stands by its international obligations.

- It must strengthen "our union of nations and our union of people".​ 

[2 March 2018 11:46 · Kristin Hugo]

Tory MPs will be watching Ms May's closely for different reasons. Remainers want to see whether the Prime Minister will offer details of what kind of customs arrangement will be offered, while Brexiteers will be watching carefully for any sign the future relationship is looking too similar to a customs union, which Downing Street has repeatedly ruled out.

[2 March 2018 11:48 · Kristin Hugo]

[2 March 2018 11:56 · Kristin Hugo]

Today's speech will lay out what the Cabinet's Brexit sub-committee agreed during a lengthy meeting at Chequers last week. 

The full Cabinet was given a preview yesterday, and repots suggest there was a fairly robust debate on the contents of the speech.

One minister said afterwards that there had been "broad agreement" - hardly the language of complete unity...

[2 March 2018 12:12 · Kristin Hugo]

Theresa May has already been accused of repeating "empty slogans" - and she hasn't even started speaking yet.

The few sections of the speech that Downing Street released last night were criticised by Remainers as being too vague.

Labour MP Chuka Umunna said the Prime Minister was in "fantasy land", while Lord Adonis said the speech had come 20 months too late.

Joe Watts' full story here: 

[2 March 2018 12:18 · Kristin Hugo]

At Liam Fox's big speech earlier in the week, the pro-EU Open Britain group handed out packets of crisps after a former senior UK diplomat suggested leaving the customs union akin to "giving up a three-course meal for the promise of a packet of crisps".

Today, Open Britain are outside Mansion House giving out cake to people attending Theresa May's speech. The UK Government has been accused of trying to have its cake and eat it - journalists turning up for the speech this afternoon will no doubt be happy to do both.

[2 March 2018 12:37 · Kristin Hugo]

The area around Mansion House, where Theresa May will give her big Brexit speech, is full of "Road Closed" signs. It's not the best of metaphors for the Prime Minister as she lays out her plan for the, er, road ahead...

[2 March 2018 13:15 · Kristin Hugo]

Not long to go now. The Prime Minister's due to speak at 1.30pm, so don't go anywhere...

[2 March 2018 13:19 · Kristin Hugo]

Earlier today Tory grandee Lord Heseltine claimed that, whatever Ms May says this afternoon, it is inevitable that some Conservative voters will accept Jeremy Corbyn as Prime Minister if it means Brexit could be stopped. Here's Rob Merrick's report:

[2 March 2018 13:31 · Kristin Hugo]

Freedom of movement between the EU and the UK will end after Brexit; for Boris Johnson it already has. The Foreign Secretary will miss today's speech after getting stuck in Hungary. He was meant to be back in time to attend but the extreme weather has put paid to that. It's unclear whether he'll be tuning in from Budapest or ditching the PM in favour of some sight-seeing...