PM’S BREXIT ULTIMATUM

Johnson sends out a tough signal to Brussels as he vows to rule out any delays BY LAW

BORIS Johnson sent an emphatic signal to Brussels last night that he will not countenance any further delays to Brexit.

Downing Street said the withdrawal legislation is being amended to rule out any extension of the transition period beyond December 2020.

Officials also moved to scotch speculation that Mr Johnson could embrace a softer Brexit in the wake of his election landslide.

His official spokesman said he would insist on a ‘Canada-style free trade agreement with no political alignment’ – abandoning the closer ties planned by Theresa May.

And parliament will lose its veto over the negotiating mandate Mr Johnson will take into next year’s trade talks.

A Downing Street source said the Withdrawal Agreement Bill would ‘legally prohibit the Government from agreeing any extension’ to the transition, which takes effect once the exit legislation is passed.

It means that the transition period – during which free movement and EU laws continue to operate – will definitely end in December 2020.

The move is designed to show Brussels that the PM will not soften his stance when trade talks begin next year.

Michel Barnier, the EU’s chief negotiator, has warned that securing a complete deal by next December is unrealistic. EU sources yesterday said only a ‘bare bones’ agreement could be nailed down by then – leaving some sectors facing ‘partial No Deal’ terms.

As Mr Johnson told Conservative MPs: ‘Let the healing fountain of Brexit juices start – let people come together’:

Government sources confirmed the Commons will be asked to vote through the first stage of the Brexit legislation on Friday;

Nicky Morgan agreed to take a peerage to stay on in Cabinet as Culture Secretary weeks after announcing she was quitting parliament;

Mr Johnson welcomed 109 new Tory MPs to the Commons;

Shares on the FTSE 100 index surged by more than 2 per cent as markets welcomed the stability brought by the new Government;

Tory sources said Thursday’s Queen’s Speech will ‘protect and enhance’ employment rights after Britain leaves the EU;

Labour infighting intensified with Emily Thornberry announcing she was suing former minister Caroline Flint over claims she called Leave supporters ‘stupid’;

Bank of England governor Mark Carney said the chances of No Deal had fallen.

The latest moves are designed to end speculation in Brussels that, cushioned by his 80-seat majority, Mr Johnson will now turn his back on Eurosceptic MPs and adopt a softer approach to Brexit.

A No 10 source said: ‘Within a couple of hours of the exit poll last week, there were people in Brussels briefing that we would extend the implementation period and go for a high-alignment model.

‘The reality is that the PM wants a Canada-style free trade agreement, with the freedom to diverge where it suits our economy. And he has given a binding commitment on the campaign trail that we are not extending.

‘People in Brussels need to process that and schedule the talks and their expectations accordingly.’

The implementation period is due to run until the end of December 2020. It is designed to secure a smooth switchover, giving business time to prepare.

A loophole negotiated by Mrs May allows the UK to extend the transition period up until the end of December 2022 to allow more time to complete trade talks.

It was retained in Mr Johnson’s deal in the autumn but he has always insisted that he had no intention of using it.

Ministers had pledged to give MPs a vote next summer on whether to extend the transition period. But sources said this provision had been removed from the withdrawal legislation and replaced with a clause specifically ruling out an extension.

Senior Tories are stressing Mr Johnson is not pursuing the kind of ‘high alignment’ deal envisioned by Mrs May, which would have seen the UK follow EU rules on goods in return for frictionless trade.

Instead, he is seeking a comprehensive free trade deal, where both sides keep barriers to trade at a minimum but reserve the right to diverge on regulations in certain sectors.

A No 10 source said: ‘We will determine the areas where we want to align with the EU. There may well be areas where we want to, but it will be our decision.’

Former Brexit secretary David Davis told BBC Radio Four’s Today programme: ‘Boris himself does want to diverge. We both resigned from Theresa May’s cabinet because we wanted divergence.’

Mr Davis said he would not expect to see divergence in sectors like the car industry, where global standards operate. But he said it was vital to break with Brussels in the growth areas such as big data.

A senior EU official said: ‘You could get a partial or basic deal done but it would be hugely damaging to the British economy, because you’ll be leaving on a partial No Deal. Which sectors will obviously depend on what bits we can agree on before December 2020, but it can’t all be done.

‘We have heard Mr Johnson say things before that he hasn’t followed through on, so I think we will wait and see if the transition period is extended.’

Brussels is said to be keen to extend the transition period and is considering offering a discount on the UK’s £10billion annual membership fee as a lure.

‘Given a binding commitment’ ‘We both wanted divergence’