Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team David Davis says considerable progress has been made in Brexit talks… Brexit secretary David Davis has said “considerable progress” has been made on important issues in his talks with the EU. Davis and his counterpart, EU negotiator Michel Barnier, have today provided an update on the progress of negotiations. The two sides have drafted principles on a common travel area to be created between the UK and Ireland, Davis said. – City A.M. David Davis says more than 200,000 EU citizens ‘won’t have to re-apply for residence rights’ after Brexit – The Sun …as Michel Barnier says UK is ‘months’ away from trade talks as fight over Brexit bill continues… The European Union today warned Britain it was “months” away from being able to negotiate a future trade deal, with huge divisions still remaining between the UK and EU over the so-called Brexit bill. Michel Barnier, the EU’s chief negotiator, insisted that Britain would have to pay all its share of money earmarked for European funds after Brexit, as the bloc’s own auditors criticised it for running up an “all time high” in spending commitments. – Telegraph (£) EU chiefs say we can’t start post-Brexit trade talks for months – but welcome ‘new dynamic’ after PM’s Florence speech – The Sun Brexit talks warmer after May’s speech, but no closure – Reuters ‘Biggest ever’ EU budget overhang casts shadow on Brexit bill – Reuters Brexit talks are a game played on Barnier’s turf, by his rules – Guardian Michel Barnier’s €47,000 Brexit bill – Politico > On BrexitCentral: Henry Newman: The UK has struck a sensible consensus – it’s time for Brussels to move the talks onto trade …with EU leaders set to agree to Britain’s request for a two-year transition period during Brexit ahead of future trade talks EU leaders plan to agree to Britain’s request for a two-year transition phase during Brexit following this week’s thawing in relations. Following concessions to Brussels, the EU Council are set to expand negotiation boss Michel Barnier’s powers to “scope out” future trade and security treaties with Brexit Britain. Our revelation comes as the most intense bout of negotiations yet drew to a close in Brussels. David Davis and Michel Barnier both talked of the progress made this week. EU insiders said Britain’s plea for a two-year interim deal post 2019 will now likely be approved at next month’s meeting after ground was given by the UK on future budget payments and citizens rights. – The Sun Time fast running out for next Brexit phase, warns Taoiseach Leo Varadkar The October deadline for the next phase of Brexit talks looks “very challenging” and time is running out, Leo Varadkar has warned. The taoiseach said that he did not know if sufficient progress had been made on Irish issues to move on to phase two of the discussions. Speaking at the third all-island civic dialogue on Brexit yesterday, Mr Varadkar said that while Theresa May’s recent speech in Florence was welcome “it does not yet bring us to where we need to be”. – Times (£) Arch-federalist Guy Verhofstadt says that he believes a Brexit deal can be done with Britain The lead Brexit negotiator for the European Parliament, Guy Verhofstadt, said on Thursday that a Brexit withdrawal agreement could be reached with Britain. “That’s the assumption that I have and it is towards that that we work,” Verhofstadt said after a speech to students at the London School of Economics. – Reuters EU’s Verhofstadt pokes fun at Theresa May over Brexit – Reuters May stands up for the City in Brexit talks: Prime Minister backs free markets and warns on EU trade… Theresa May yesterday warned against erecting trade barriers between the UK and the EU after Brexit, in a marked change of tone as she swung behind City plans for a deal on financial services. The Prime Minister emphasised the need for co-operation, as she appeared to back City efforts to push for a deal allowing mutual market access. Speaking at a Bank of England conference to mark 20 years of operational independence, May said: “It is in neither the EU’s nor the UK’s interest to see these financial services markets fragment.” – City A.M. …as she presses case with EU on security in Tallinn… Prime Minister Theresa May will press on Friday for Britain to have a new security partnership with the European Union after Brexit, visiting 800 British troops in northern Estonia to strengthen her case. Security cooperation is seen by British government officials as one of their strongest arguments to gain leverage in the complicated talks to unravel more than 40 years of union, and May will again underline Britain’s role in European defence. – Reuters Theresa May ‘committed to security of Europe’ as she meets Merkel – Sky News Theresa May: UK wants ‘bold, new’ security pact with EU post Brexit – Politico …and pledges talks with Nicola Sturgeon to break Brexit powers deadlock Theresa May has pledged to hold discussions with Nicola Sturgeon to help break the deadlock over whether EU powers should be held by Westminster or Holyrood after Brexit. The Prime Minister said she expected a “significant” number of powers repatriated from Brussels to be devolved to Scotland but the UK’s internal market also had to be protected. – Telegraph (£) EU Withdrawal Bill faces new obstacle after Lords demand changes Theresa May faces fresh difficulties getting her flagship Brexit bill through parliament after lawmakers in the upper House of Lords demanded changes to its provisions for scrutiny. The House of Lords Delegated Powers and Regulatory Reform Committee said Thursday that the European Union (withdrawal) Bill, which is designed to copy EU rules and regulations into British law, should be adapted so a panel of lawmakers chooses which ones need to be approved by Parliament. – Bloomberg Cabinet draws swords over post-Brexit trade model Boris Johnson’s call for Britain to be speedily “unleashed from the coils and toils” of the EU’s common trade policy has set the scene for a looming cabinet clash: how and when should the UK break its ties with the customs union. In the other corner are pro-Remain cabinet ministers, led by chancellor Philip Hammond, who are sceptical about the prospects for big new trade deals and fear that a full exit from the EU customs union would immediately hit the British economy. – FT (£) Civil servant Olly Robbins is setting up a Brexit team outside DexEU Senior civil servant Olly Robbins is setting up a team of Europe-focused specialists, pulling more resource away from David Davis’ Department for Exiting the EU (DexEU). Robbins, who earlier this month moved from DexEU to Number 10, is in the process of pulling together a crack unit of around 20 people, to form a “a major Whitehall power base”, Politico reported this morning. – City A.M. Polling shows public trusts May ahead of Corbyn to negotiate Brexit Not only do they trust the Conservative Prime Minister more than the Labour leader when it comes to leaving the EU, but they also back the Government’s current strategy on Brexit. When YouGov asked the public who they trust to negotiate Brexit for the UK, 31 per cent said Theresa May while just 18 per cent said Jeremy Corbyn (although 35 per cent said that they’d prefer neither politician). Likewise, four in 10 people said that the Government should continue with Brexit on its current negotiating terms. – Telegraph (£) Prince William urges business leaders to build trading connections The Duke of Cambridge has told business leaders that as the nation looks to the future, everyone recognises the importance of “strengthening links with old friends and creating new opportunities”. William’s comments, made at the launch of an event dubbed the “Glastonbury of business”, may be interpreted by some commentators as a reference to UK trade post-Brexit. – Belfast Telegraph Frictionless borders: learning from Norway Anita Graff from Norway and Vidar Gundersen from Sweden now work for a commercial customs agency, but once collaborated on a trial project to use technology to speed things up at the border. “It is possible to set up solutions with smooth border crossings without stopping – the technology is there already,” says Anita. She says the UK could get such a system up and running within 18 months. Vidar believes the UK has an advantage because it is starting with a clean sheet. But he says collaboration between countries and businesses is vital: “You have to work on this together and everyone has to see this as a common challenge still to solve.” – BBC News UK consumer confidence inches up to four-month high in September Confidence among British consumers unexpectedly edged up to a four-month high in September… GfK said consumer morale rose for the second month in a row. – Reuters Franklin Dehousse: Why the sequencing of the Brexit negotiations should be abandoned The sequencing is not a legal obligation… So the sequencing is a tactical choice of the EU. This means it needs to be assessed on the basis of its benefits and costs. On one side, the benefits are not obvious. Even if one debates about the withdrawal arrangement before the future framework, it is adventurous to expect the UK will contribute dozens of billions into the EU budget post 2019 without any trade agreement. On the other side, the costs are mounting. Firstly, this approach implies that all initial concessions have to come from one side of the table. This is hardly an incentive to compromise. Secondly, it limits the scope of trade-offs. Thirdly, it makes the negotiations more difficult by disconnecting connected topics. For example, the future status of North Ireland border is of course dependant on the future regime covering free movement of goods and people. – Franklin Dehousse, former ECJ judge, for the Egmont Institute > On BrexitCentral: Henry Newman: The UK has struck a sensible consensus – it’s time for Brussels to move the talks onto trade Matthew Holehouse: May’s hunger for a Brexit deal seen in citizens’ rights compromise [Theresa May] announced on Friday that the withdrawal agreement — which would petrify the EU-derived rights of three million people living in the UK and one million Britons living on the continent — can be cited before the UK courts… But so far, it has provoked little reaction among pro-Brexit lawmakers, who have previously been swift to sound the alarm at any sign of “backsliding” on the UK’s constitutional revolution… Although she didn’t use the term, this effectively preserves the EU law principle of “direct effect” — the concept that the bloc’s treaties pierce the domestic legal order and confer rights upon individuals. These rights can be invoked before the courts, and override domestic statute. – Matthew Holehouse for MLex Lucy Harris: Sadiq, more Londoners voted Leave than voted for you London mayor Sadiq Khan became Labour’s foremost anti-Brexit voice this week. In his conference speech, Khan once again hinted that there could be a second referendum… Yes, Remain won 59.9 per cent of the vote in London. But that still leaves 40.1 per cent who voted Leave. This amounts to 1,513,232 people, which is 17 per cent more than voted for Khan to become mayor. You’d think it would be wise for London’s elected mayor to rise above partisan politics and to represent all Londoners, including those he disagrees with. – Lucy Harris for Spiked Brexit in brief Rona Fairhead will work under Liam Fox as a trade minister and become a Conservative peer – The Sun CBI and TUC unite for Brexit attack on Government over citizens’ rights – Sky News Dan Hannan MEP: Why Brexit will be a success – Channel 4 News MEP Steven Woolfe: Prepare for a clean Brexit – Bloomberg Employers urged to do more to attract British workers – FT (£) And finally… The Premier League of Brexiteers – how top football clubs’ fans voted in the referendum Chelsea fans are the supporters most likely to have voted Leave in the EU referendum, according to the results of a new study that surveyed followers of Premier League clubs. Almost two-thirds of Chelsea fans, 62%, supported the campaign to withdraw Britain from the European Union, with 57% of Tottenham and Everton fans also Leavers. – Telegraph