Brexit: UK to leave European Union single market

We do not seek to hold on to bits of membership as we leave.

For months, Mrs May has had to counter accusations that she and her ministers have no well-defined vision for Brexit.

British Prime Minister Theresa May has at last delivered a speech outlining the United Kingdom government’s plans for Brexit.

However, the prime minister promised to push for the “freest possible trade” with European countries and to sign new deals with others around the world.

“The speech was meatier than I had expected given that the government has been saying that to lay out their plan would be detrimental”, says Oliver Patel, research associate at the European Institute at University College London.

“The difficulty Theresa May faces is that European Union leaders said that if Britain wanted to place restrictions on freedom of movement, then Britain would have to leave the single market, so Theresa May has chosen to leave the single market, in order to limit immigration”.

“She doesn’t want to have the further, let me say, legislative problems from Brussels … but we can not accept that a free trade agreement is at the same level like we have today in the trade relationships …”

Her direction will be cheered by those who want to leave the European Union, but dismay those who fear the impact on Britain’s economy.

The markets reacted positively to her long-awaited speech detailing her 12 priorities for the forthcoming Brexit talks, with the pound rising by nearly three per cent against the dollar.

Those opposed to the Brexit fear that leaving the single market will inflict serious damage to the economy and personal finances of working-class people nationwide. The single market allows for the free movement of goods and services through the harmonisation of regulation and the removal of impediments to do business across the EU. Immigration can not be reduced without exiting it, although many have expressed concern about the economic ramifications of leaving. At the same time, it will control immigration to Britain from Europe.

The speech would call on Britain to “set aside old divisions, and unite to make a success of Brexit”, said May’s office. “It may have been that they said everything should be discussed together – in other words, they could not negotiate as a single country – that everything had to be as part of the group of 27”, he said.

Mr Davis dismissed fears that a beneficial deal for Britain might encourage other countries to leave the European Union, suggesting that they were more wedded to European Union membership because they lacked Britain’s deep, democratic roots.

Access to the single market is a key factor for overseas firms basing their European operations in the City and Mrs May is expected to use the annual Davos gathering to speak to Wall Street bosses about the issues they face amid reports Goldman Sachs is considering moving hundreds of jobs from London to NY and Frankfurt.

The government also wants to guarantee the rights of European Union citizens who are already living in Britain, and the rights of British nationals in other member states, as early as it can.

“They won’t vote it down”, Davis told the BBC. That means tariff-free trade within the European Union while making any trade deal Britain wants with the rest of the world.

May referred to the academic and scientific communities in the country as one of the “great strengths” of the nation, backed up by some of the world’s universities.

Mike Hawes, of the Society of Motor Manufacturers and Traders, said “We must, at all costs, avoid a cliff-edge and reversion to WTO tariffs, which would threaten the viability of the industry”.

“This was definitely a have our cake and eat it type scenario”, says Patel.

“Clearly we need people to come and work in our economy to keep it functioning”, the chancellor of the Exchequer said.