Yahoo Finance Theresa May plans to sever ties with EU 'immediately' after Brexit
Theresa May is planning to sever ties with key areas of the EU “immediately” after Brexit.
Sources say the prime minister wants to redraw trade policy, farming subsidies and financial services regulations and move on them as soon as possible after the transition period expires in 2020.
According to senior officials, speaking to website Politico, restricting freedom of movement is also high on the agenda, as is pumping money recouped from no longer paying into the EU budget into public services such as the NHS.
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The contentious Leave campaign claim about reallocating the £350m a week contribution to the EU into the NHS is believed to have been a major factor behind the referendum result.
The “inner Brexit Cabinet” is meeting on Thursday to discuss the UK’s position and plan for life after Europe and it is expected to be signed off during the coming weeks – despite apparent wide splits within Theresa May’s party on how far and hard to go.
The two officials quoted by Politico indicate the prime minister is ready to push a far tougher agenda than many believed she would.
She has made it clear in private that Britain must aim high in its opening offer to the EU, according to one of the officials.
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May reportedly told an audience of Tory donors that leaving the EU must mean “taking control” of Britain’s money, borders and laws.
This meant “leaving the single market and customs union and constructing a completely new trading partnership with the EU”, Politico reports.
The apparent hardening of resolve in the UK’s position comes against the backdrop of more gloomy assessments of the impact of Brexit.
Leaked government documents suggest regions and sectors across the country and economy will be hit hard.
Britain’s retail sector could be hit by a 20% rise in costs after Brexit, while car makers could see a 13% hike in manufacturing costs outside the EU, according to the internal estimates.
The food, drink, defence and education sector could also see a 16% rise in costs.
Forecasts also show the North East of England and the West Midlands, both areas where the majority backed the Leave vote, will see the largest economic slowdown.
The North East could take a 11% hit to economic growth under a free trade deal with the EU, while a no deal scenario would see a 16% fall.
The EU’s lead negotiator, Michel Barnier, has warned repeatedly that the UK cannot have a “cake and eat” deal and that leaving the bloc will come at a price.
