EU leaders frustrated by Chequers deal on Brexit

smooth imports and exports, while there could be different rules in other sectors.

EU leaders intend to make a no-frills offer based loosely on an existing free trade deal with Canada. One senior EU official close to the talks said: “That will happen no matter whether more or less detail will come from London by that time.” The official said the EU’s paper will reflect “what we know about the UK’s red lines”. Jean-Claude Juncker, president of the European Commission, has repeatedly said Mrs May’s red lines — such as rejecting free movement, the European Court of Justice and any customs union — leave no other blueprint than a basic free trade agreement.

Mrs May, however, will seek what Brexit Secretary David Davis called “Canada plus plus plus”, giving free trade in goods and mutual recognition of standards in a range of areas. Sources said a speech spelling out her vision will probably be staged next Friday.

The eight-hour meeting at Chequers, in Buckinghamshire, ended at 10pm last night and was being hailed by Brexiteers as a victory. “Divergence has won the day,” claimed one attendee. Others, however, said the emphasis was on perfect alignment in the short term, and Tory MP Sarah Wollaston said it sounded like a “meaningless” fudge.

Mr Hunt, on the BBC Radio 4’s Today show, said the Cabinet committee had agreed on a policy which will put Britain outside a customs union but match Brussels rules in certain sectors. He said: “The central common understanding is that there will be areas and sectors of industry where we agree to align our regulations with European regulations.”