May calls for creative Brexit - but no detail on bill

Saying that Brexit needed the kind of imagination that saw the Renaissance flourish in Italy, Mrs May told listeners in Florence the UK wanted a two-year transition period after Brexit, in which little would change but during which the UK would be able to negotiate new trade deals.

However she said that built into an agreement on this (which could form part of the exit deal) would be guarantees on a time-limit to allay worries of those who fear such an arrangement could continue indefinitely.

This transition is needed to help people and business prepare, so Brexit can take place in an “orderly” way, “with as little damage and disruption to people’s lives and the economy as possible”, she told journalists.

Mrs May said she recognised that the UK could not leave with everything staying the same. Her objectives as outlined in her ‘Lancaster House’ speech earlier this year remained the same – the UK will leave the customs union and single market.

However the UK wants a new “deep and special relationship” ranging across matters including trade and security.

During the transition period Mrs May said EU citizens could continue coming to the UK, but would have to register. This would lead on to the UK taking full control of its borders afterwards.

She added that Britain places a high priority on continuing defence and security cooperation with the EU and she said a separate treaty should be signed on this.

Rejecting either a ‘Norway’ (EEA) or ‘Canada’ arrangement after Brexit – the latter referring to negotiating a classic free trade treaty with the EU – Mrs May said the UK was starting from a ‘unique’ position because at present it shares the same rules with the EU.

The EEA option would not work because the UK would have to continue to follow rules it had not voted for which “wouldn’t work for us”. As for a free trade deal, it would be too restrictive compared to what the UK has now and could take years.

“We can do better,” she said.

She added that “no one sensible” contemplates the idea that there should be trade tariffs between the UK and EU.

The UK will want to maintain similar positions in many areas – British people do not want shoddy goods or a poor environment or working practices, she said.

However there will have to be a new dispute resolution mechanism for when the two sides disagree, and this should neither be the UK courts nor the ECJ.

On expat rights, Mrs May said there had been much progress and she was confident of a quick agreement. She wanted to protect the rights of EU citizens in the UK to continue with their lives, and wanted the same for Britons in the EU.

She acknowledged that Brexit had caused “worry and anxiety” to EU expats in the UK, but said “we value you and thank you for your contribution to national life”.

The agreement on rights would be put into UK law and the British courts would enforce it. The courts would be able to refer to ECJ judgements if there was any uncertainty about any underlying EU law principles.

As for the money side of the British exit, Mrs May acknowledged that other states were worried about the EU budget and whether they would have more to pay due to Brexit.

“Some of the claims made on this issue are exaggerated and unhelpful,” she said. “And we can only resolve this as part of the settlement of all the issues I have addressed today.

“Still I do not want our partners to fear they will need to pay more or receive less over the remainder of the current budget plan as a result of our decision to leave.

“The UK will honour commitments we have made during the period of our membership.”

During questions and answers after the speech, no question was taken as to how much the UK was willing to pay.

Mrs May said that in the future the UK would also seek to continue to take part in programmes on science, education and culture and security, and to make ongoing contributions to “cover our fair share of the costs involved”.

She told journalists the UK still believes that “no deal is better than a bad deal”, but that “we think we can have a great deal if we approach this with ambition and creativity”.