Brexit: Picking apart Theresa May's red lines on leaving the European Union

Britain has voted to leave the EU
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By Tamara Cohen, Political Correspondent

The single market

Simple - we're out. This is the key revelation and will be the headline in tomorrow's newspapers.

Britain in the single market - the system by which labour, goods, services and capital move freely around the bloc - is no more, as both Leavers and Remainers warned during the campaign.

That means freedom from the court which governs it, the European Court of Justice, as Mrs May has long wanted.

(Staying in the single market would mean) complying with the EU's rules and regulations… without having a vote on what those rules and regulations are…
Theresa May

The UK was instrumental in setting up the single market and critics point out that thousands of businesses large and small rely on it.

But as far as Mrs May is concerned, inside it we cannot restrict immigration - and she has made that her red line in negotiations because she feels that's what people voted for.

It's not unexpected given the hints dropped so far, but making it explicit will open up debate on what it means for business and public services.

More on Brexit

The customs union

Her stance is stronger than we expected.

Our membership of the Customs Union is an arrangement by which our goods cross European borders without time-consuming customs checks or paying any tariffs.

In return we have to charge the same tariffs on outside countries as the rest of the EU, so can't have a competitive advantage or sign free-trade deals with other countries.

I do want us to have a customs agreement with the EU… I have an open mind on how we do it.
Theresa May

It was expected the Prime Minister might fudge this issue, given the opposition of the Treasury to leaving.

But she was clear that Britain is not seeking to stay in it, but perhaps will seek an "association agreement" or sign up to some of it.

That will take some wrangling, and the car and aviation sectors, pharmaceuticals and others will be lobbying hard behind the scenes.

Immigration

Not a great deal more about how she intends to bring immigration down.

We have known for months that the Prime Minister sees ending free movement as a red line in the negotiations because that's what she feels people voted for.

But the Cabinet is divided on the approach to take.

We will get control of the number of people coming to Britain from the EU.
Theresa May

Mrs May said she still wants Britain to attract "the brightest and the best" of high-skilled migration. Others in Cabinet believe continuing low-skilled migration on a significant scale is also crucial.

Home Office officials are looking at the possibility of a visa waiver scheme, but Mrs May offered no more detail on what restrictions she wants to see, or on whether she will guarantee the rights of EU citizens here.

The EU budget

Another red line here, although the Prime Minister did not rule out paying in some money to the EU for certain programmes (these could include Erasmus for students, or the fund to support less developed countries).

"Vast" could be the subject of heated debate in future, particularly if our EU exit takes some years to work out.

The days of Britain making vast contributions to the European Union every year will end.
Theresa May

There is also a looming row about the "exit payment" of some £50bn which Britain may have to make for outstanding pensions liabilities for EU staff, loan guarantees and spending on UK-based projects.

How long it will take to leave the EU?

Responding to heightened speculation about how long it could take - ex-EU commissioner Peter Mandelson said that it could be a decade - Mrs May made clear she wants the negotiations to proceed in parallel with a free-trade agreement with the EU, and that she hopes to do this within the two-year window.

But there will be "a phased process of implementation" strictly time-limited to avoid a cliff edge for business and the public sector, which will be negotiated. This is likely to include immigration controls.

Carrot and stick in Europe

This was a charm offensive to the assembled EU ambassadors, but with a sting in the tail.

The Prime Minister was at pains to stress that Britain wants to be a friend and partner, to collaborate on defence and security and for the EU to succeed rather than unravel.

I know there are some voices calling for a punitive deal that punishes Britain... That would be an act of calamitous self-harm for the countries of Europe
Theresa May

But after Chancellor Philip Hammond this week warned Britain could slash corporation tax rates if the EU doesn't give the UK a free trade deal, Mrs May also played hardball on the fact that EU economies will suffer without British trade and the jobs it supports.