LONDON—The British government published in detail the long-awaited plan for its future economic relationship with the European Union, including proposals that have disappointed the financial-services industry because they accept a significant reduction in the sector's access to Europe.
The contents of the 98-page document have already torpedoed a fragile truce between warring factions in Prime Minister Theresa May’s ruling Conservatives over how close the U.K.’s economic ties to the EU should be after the country’s departure...