Flashpoints on the road to Britain and EU parting ways

What Theresa May could say: UK officials have briefed the EU that Britain could pay €20billion (£17.6billion) during a two-year transition period as part of a divorce settlement. How would the Cabinet react?

The Cabinet is now broadly in agreement that the UK will make contributions to the EU’S budget during a transition period. How would the EU react?

The Prime Minister’s gesture of goodwill is likely to receive only a guarded welcome in Brussels.

The Brexit divorce bill

What Mrs May could say: The Prime Minister is expected to make a broad commitment to honouring the UK’S obligations after the transition period. How would the Cabinet react?

While Philip Hammond, David Davis and other Cabinet ministers have accepted the need for some contribution, Mr Johnson said the EU can “go whistle” if it demands a hefty payment. How would the EU react?

The EU is demanding that significant progress is made towards a Brexit divorce bill, which it says should be as much as €100 billion (£88 billion).

The transition period

What Mrs May could say: The Prime Minister is expected to announce a transition period lasting two years to ensure both the UK and Brussels have time to adjust to Brexit. How would the Cabinet react?

Mr Boris Johnson wants a shorter transition. Most other Eurosceptic ministers accept a two-year period. How would the EU react?

Although EU officials recognise that “transition” is the obvious way to reduce the political tensions, they show no signs of granting the UK the early reassurance of a transitional deal.

The future relationship

What Mrs May could say: The Prime Minister is expected to drop a previous threat to slash taxes and aggressively compete with the EU if it is denied access to the single market. How will the Cabinet react?

Mr Johnson has said that the UK has nothing to fear if it leaves without a deal. Pro-european Cabinet ministers have suggested it would be very bad. How would the EU react?

While EU leaders will welcome Mrs May’s warm words, they will remain clear that the legal framework of the ingle market cannot be jeopardised.

The trade deal

What Mrs May could say: The Prime Minister will say that she does not want an “off-the-shelf” trade deal for Britain after Brexit. How will the Cabinet react?

Eurosceptic ministers are pushing for the “Canada model”, eliminating tariffs without the need for contributions. Proeuropean ministers favour the “Swiss model” in which the UK would pay contributions and accept some free movement for access to the single market. How would the EU react?

The EU is adamant that talks about a trade deal cannot be discussed until issues such as the divorce bill and Northern Ireland have been resolved.