PM’s speech aims to break deadlock on negotiations

THERESA May will try to break the deadlock in the Brexit talks with a major speech setting out her vision for a new deal with the EU.

The Prime Minister will travel to Florence next Friday to deliver an ‘update on Brexit negotiations’ amid fears they are close to stalling.

Mrs May will confirm Britain is to leave the EU in March 2019. She will say the existing system of free movement will end at the same time.

But she is expected to strike a more conciliatory tone on the controversial issue of the divorce bill, which Brussels is demanding be resolved before trade deal talks begin. Ministers have rejected demands from Brussels for a payment of £90billion. But sources said the Prime Minister is considering a proposal that would see the UK continue to pay into the EU budget during a two-year transition. This would involve the UK paying around £35billion into the existing EU budget, which runs until the end of 2020.