May ‘well on the road’ to Brexit delivery

Theresa May has declared she is “well on the road” to delivering Brexit, after leaders of the 27 remaining member states agreed to allow negotiations to proceed to their second phase.

The Prime Minister made clear she wanted talks on post-brexit trade relations with the EU to begin “straight away”, as the UK continues with its goal of negotiating a deal which can be signed immediately after the official date of departure on March 29 2019.

Her target was described as “realistic” but “dramatically difficult” to achieve by European Council president Donald Tusk.

Mrs May was boosted by the terms of a statement agreed by the EU27 at the European Council summit in Brussels, which left the door open for “exploratory contacts” early in the New Year to allow Brussels to gain greater “clarity” on the UK’S ambitions.

But the formal process is likely to run to a slower timetable, with official EU guidelines for trade talks not due to be approved until March 2018, when European Commission president Jeanclaude Juncker said the “real negotiations” would begin.

The EU27 confirmed Brussels’ position that a final trade deal cannot be signed until the UK has formally left.

The document also sets out the process for agreeing the terms of a transition period expected to last two years after the date of Brexit.

It makes clear that the EU expects the UK to observe all of its rules – including on freedom of movement – and accept the jurisdiction of the European Court of Justice during this time.

It also set up a potential clash with London over Mrs May’s hopes of negotiating early trade agreements with countries outside the EU, stating firmly that the UK will stay in the single market and customs union during transition and will “continue to comply with EU trade policy”, which bars deals by individual states.

Mrs May said the move to the second phase of talks represented “an important step on the road to delivering the smooth and orderly Brexit that people voted for in June of last year”. She said Britain would be “beginning the talks about our future relationship straight away”, adding: “There is still more to do but we are well on the road to delivering a Brexit that will make Britain strong, prosperous and secure.” for capital, and if local authorities use their council tax powers up to 3% then they will have a real terms increase.”

Labour have raised concerns the pay rise does not apply to 243,000 local government workers as the budget states that matters relating to their pay and employment are delegated to councils.

Asked whether council workers would be the only public sector staff left without a pay rise if local authorities don’t raise council tax by 3%, Mr Mackay said: “That would be up to local authorities, they have control over their pay policy and the council tax up to a limit cap of 3%.

“What I’m describing is I’ve protected their budgets, I’ve enhanced capital budgets for local authorities and if they use their powers they will have more money in real terms. And it’s in that fiscal environment that I do believe that they can engage constructively with their own workforce.”

The budget also introduced a new five band system of income tax that will leave those on a salary of £33,000 or above paying more, while health spending next year will increase by more than £400 million, taking the overall total to over £13 billion.

The Greens said they were not prepared to back the draft budget in its current state but there were elements they could work with the Government on.

Asked how much more the Greens would want for local government for the budget to be acceptable to them, MSP Andy Wightman said around £150 million.

During his visit Mr Mackay said he would be open to talks, adding: “I’m in a minority government, I have to compromise to get a budget through.”

The Prime Minister will begin talks ‘straight away’ about the UK’S relationship with the EU.