Brexit - live updates: Theresa May asserts UK financial services will get a good deal despite EU warnings

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Welcome to The Independent’s politics liveblog. Theresa May has met her full Cabinet and ministers set our their own visions for the UK’s relationship with the EU after Brexit.

The meeting lasted for an hour and 45 minutes and some 25 ministers spoke, according to the Prime Minister's official spokesman.

Discussions on the so-called “end state” come amid reports that the Prime Minister and her aides are planning a speech – similar to Lancaster House and Florence – where Ms May will set out the Government’s vision for future trade with the bloc.

Michel Barnier, the EU’s chief negotiator, has also given another interview, insisting there will be no special arrangement to allow City firms to trade freely in the EU if Britain leaves the single market – a further blow to Ms May’s hopes of securing a bespoke deal with Brussels.

In comments likely to infuriate hardline Brexiteers, Mr Barnier said that the UK must follow all EU rules during the expected two-year transition period following the official date of Brexit in March 2019 - including laws introduced during that time with no British input into decisions.

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'No place' for the City of London's financial services in any Brexit trade deal, Michel Barnier warn

The EU’s chief negotiator has warned there will be “no place” for the City of London’s financial services in any Brexit trade deal struck between the UK and the EU. Michel Barnier argued there is not a trade deal anywhere it the world including financial services, adding, “it doesn’t exist”.

The DUP will not have to name the source of a £425,000 donation it spent campaigning for Brexit

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Here is more on Theresa May's call with Donald Trump from the Press Association.
Theresa May was expected to raise Donald Trump's recognition of Jerusalem as the capital of Israel in a Tuesday afternoon phone call, her official spokesman said

The Prime Minister was speaking with the United States president from Downing Street and was expected to restate her disagreement with his decision to move the US embassy to the holy city.

It comes after Britain joined 13 other members of the United Nations Security Council in backing a resolution, vetoed by the US, which rejected the recognition of Jerusalem as the capital of Israel.

At the afternoon Downing Street briefing it has been revealed that Theresa May spoke with the US President Donald Trump. We'll bring you more details as soon as we have them, but this is from Political Editor Joe Watts who is at the briefing.

Theresa May hits back at EU over bespoke Brexit deal

Downing Street has dismissed a warning from the EU’s chief Brexit negotiator that there will be no special deal for the City during future trade talks. Michel Barnier struck a blow to Theresa May’s hopes of a bespoke deal with Brussels, when he said there was “no place” for financial services in any post-Brexit trade deal.

Mayor of London Sadiq Khan said the Government's approach to police funding "beggars belief".

He added: "Londoners should ignore the Government spin today - this is yet another year of real-terms cuts to the funding the Government provide to the Met."

 

Police to receive £450m extra funding in latest Government U-turn

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Britain is the most individualistic country in the EU

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EU may refuse to back Britain over the Falklands after Brexit, former UN ambassador warns

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Theresa May hits back at EU over bespoke Brexit deal

Downing Street has dismissed a warning from the EU’s chief Brexit negotiator that there will be no special deal for the City during future trade talks. Michel Barnier struck a blow to Theresa May’s hopes of a bespoke deal with Brussels, when he said there was “no place” for financial services in any post-Brexit trade deal.
In an interview with the London Evening Standard the Defence Secretary Gavin Williamson has admitted he could not have done any better to stop Tory rebels. He also said that Britain must "step up" to deal with North Korea as it is on the path to developing missiles that could strike London. 
 
The Press Association has more here:

Defence Secretary Gavin Williamson has admitted he could not have halted a Tory rebellion which resulted in the Prime Minister's first Commons defeat, had he still been chief whip.

Theresa May was dealt a damaging blow on Wednesday, as MPs backed the attempt to ensure they have a "meaningful vote" on the Brexit withdrawal deal.

By a margin of four votes, MPs from opposition parties sided with Tory rebel Dominic Grieve and his allies to defeat the Government by 309 to 305.

There were 11 Tory rebels in total, according to the official Commons list.

Asked whether the outcome would have been different and if he would have stopped it, Mr Williamson told the Press Association: "We have the world's best chief whip in Julian Smith.

"The Conservative Party and this Government couldn't be more fortunate to have such a brilliant chief whip - he was my deputy and I was so privileged to have him.

"He does an amazing job, I certainly could not have done any better than Julian did. He is a brilliant chief whip."

Mr Williamson took over as Defence Secretary in November after Sir Michael Fallon's resignation amid sleaze allegations.

Some Tories have pointed the finger of blame at Mr Smith who was facing his first major whipping challenge within his new role, which he took over last month.

Seems like the Defence Secretary has had a great day out. https://pbs.twimg.com/media/DRar2ZKW0AAHgyp.jpg

Here is some reaction to today's Cabinet meeting. 

Chuka Umunna, a Labour MP and supporter of the pro-EU group Open Britain, “It is disgraceful and a dereliction of duty that the Cabinet has only today – eighteen months after the referendum – had an opening full discussion about what our future relationship with Europe should look like.

“The problem is clear. The Cabinet cannot agree among themselves about what Brexit outcome they want beyond an unrealistic ambition to have cake and eat it. Going into the most complex negotiations in modern British history without a clear plan of action is irresponsible and very unlikely to deliver what the Government promised – a deal that gives us the ‘exact same benefits’ as we enjoy now.

“Brexit is significantly more complex than anyone could have realised during the referendum campaign. As new facts continue to emerge and the costs spiral, people have every right to keep an open mind on whether Brexit as delivered matches what was promised, and whether it is really the right choice for the country.”

Tom Brake, the Liberal Democrats Brexit spokesperson, added: “By ruling out membership of the single market, Theresa May is threatening thousands of jobs and billions of pounds of tax revenue.

“Today’s rare display of Cabinet unity won’t fool anyone.

“We all know David Davis is incapable of negotiating a deal that will satisfy his own backbenchers while protecting people’s jobs and living standards.

“It is families across the country, not Conservative ministers, who will pay the price for this botched Brexit.

Police to receive £450m extra funding in latest Government U-turn

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This is from my colleague Lizzy Buchan who has just been to the Downing Street briefing: 
 
Some 25 ministers spoke during today’s Cabinet detailed discussions, which lasted for an hour and 45 minutes, according the Prime Minister’s official spokesman.

At a regular Westminster briefing, Ms May’s spokesman said ministers were in agreement during the meeting and it was “clear what the Government wants to achieve” through the next phase of the Brexit talks.

He said: “The PM said the starting points for the discussion were the speeches at Lancaster House and at Florence which set the framework for the overall relationship we should seek with the EU.

“This is a new deep and special partnership, spanning both a new economic relationship and a new relationship on security.
“The PM said it was clear what the Cabinet’s objective is - a deal which secures the best possible trading terms with the EU, enables the UK to set rules that are right for our situation and facilitates ambitious third country trade deals.”

Ms May told ministers to be “creative” in coming up with proposals and it was clear that the Government wants to move quickly to find an agreement with Brussels.

Both David David, the Brexit Secretary, and the Prime Minister, agreed to seek “a bespoke deal” and Ms May ruled out replicating a European Economic Area model or a Canada-style trade deal, her spokesman said.

He added: “Further Cabinet discussions will take place earlier in the New Year on the future partnership and the precise nature of the implementation period.

“The PM, summing up, said the positions adopted by the Government would be in the national interest and she was confident of building a dynamic post-Brexit economy which will deliver growth, jobs, prosperity and a better future.”