Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Jacob Rees-Mogg says May must stick to her Brexit red lines or risk revolt… Theresa May will face an open Tory rebellion that risks the collapse of her Government unless she delivers the Brexit “she herself has promised”, Jacob Rees-Mogg has warned ahead of a critical summit at Chequers. In a significant hardening of the position of Tory Eurosceptics, Mr Rees-Mogg made clear that he and his colleagues will vote against Mrs May’s deal if she fails to “deliver what she has said she would”. Writing in The Telegraph, Mr Rees-Mogg compared Mrs May’s position to that of Sir Robert Peel, the former Conservative Prime Minister forced to quit after his party revolted over the repeal of the Corn Laws. – Telegraph (£) Theresa May must keep her Brexit customs union promise or face revolt by Tory MPs – Jacob Rees-Mogg MP for the Telegraph (£) Rees-Mogg “unaware” of reported £750k leadership war chest – Express …as the PM’s Brexit advisor Olly Robbins claims Brussels won’t offer a bespoke deal… Theresa May’s chief Brexit negotiator has told ministers that they have no chance of striking a bespoke trade deal with the European Union. Oliver Robbins briefed secretaries of state before their meeting at Chequers on Friday that they had to be realistic about what could be achieved. He is understood to have painted a bleak picture of the state of negotiations, saying that Michel Barnier, his EU counterpart, was under no pressure from European leaders to soften his tough stance even though Mrs May had asked them to intervene. One government figure said that the clear message had been that ministers may end up having to choose between a Norway-style deal in which Britain remains in the single market but has to accept EU rules, or a simple free-trade agreement that is strongly opposed by business. – The Times (£) Robbins left negotiating documents on the train – The Times (£) …and senior Tories open door to a prolonged transition period Senior cabinet ministers are openly considering the idea of extending the UK’s Brexit transition period, days before the Prime Minister gathers her team for a vital summit at her country retreat.Business secretary Greg Clark yesterday suggested that the transition deadline could be extended past 31 December 2020 to allow businesses to better prepare for life outside of the EU. Meanwhile, Andrea Leadsom, the Brexit-backing cabinet minister and Leader of the House told HuffPost that while she didn’t support extending the transition period the policy is “under review.” – City A.M. Brexit transition could be extended leaving us tied to the EU for years, Business Secretary claims as Jeremy Corbyn says he’d back the delay – The Sun Minister hints Brexit transition could be extended – Sky News The Brexit deal cannot come at any price – Telegraph editorial (£) Downing Street to propose mystery third model for post-Brexit customs arrangements… Downing Street has produced a third model for handling customs after the UK leaves the EU, the BBC understands. Details of the new plan have not been revealed publicly but senior ministers will discuss it at Chequers, the prime minister’s country retreat, on Friday. Ministers have been involved in heated discussions recently as they tried to choose between two earlier models. Tory backbencher Jacob Rees-Mogg says the PM risks a revolt if the type of Brexit she promised is not delivered. Theresa May hopes to resolve cabinet splits on the shape of Brexit at this week’s cabinet meeting. The prime minister has said the UK will then publish a White Paper setting out “in more detail what strong partnership the United Kingdom wants to see with the European Union in the future”. – BBC News Tory tensions rise as decision day looms for Theresa May- Katy Balls for The Spectator Post-Brexit frictionless trade between UK and EU is possible – but only if the Government embraces it – Juliet Samuel for the Telegraph (£) …but freedom of movement is ‘not on the table’ says minister Extending freedom of movement is not up for negotiation ahead of a crunch meeting of a divided Cabinet to thrash out its Brexit position, housing minister James Brokenshire said today.Freedom of movement between EU nations is a key point of tension within government, with official policy still that total annual immigration will be reduced to the tens of thousands. However, home secretary Sajid Javid has previously hinted that the immigration target may be up for review.“Freedom of movement is ending,” Brokenshire said, speaking to the BBC. “Some sense that freedom of movement will continue into the future is not correct.” – City A.M. Brexit Chequers summit will yield ‘clear direction’, minister says – BBC News NHS is making ‘significant preparations’ for no-deal Brexit The NHS is making “significant” preparations for leaving the European Union without a deal to ensure that the health service has the medicines and equipment it needs. Simon Stevens, the chief executive of NHS England, said that “immediate planning” is underway to ensure that people can continue to get the medicines that they need. It comes after claims that Whitehall is preparing for an “Armageddon” Brexit scenario which could see hospitals running out of medicines within two weeks. – Telegraph (£) NHS plan in case of no-deal Brexit, Simon Stevens says – BBC News NHS boss: Extensive planning for ‘no deal’ Brexit – Sky News NHS bosses hold emergency talks to avoid medicine supply crisis if we quit the EU without a deal – The Sun > Watch on BrexitCentral’s YouTube Channel: NHS boss says “significant planning” going on for all Brexit scenarios Don’t touch EU’s satellite with a barge pole says ex-chief of MI6 The former head of MI6 has warned Theresa May to avoid the EU’s Galileo military satellite system and accused “bullying” Brussels of trying to “suck us dry” of our vital intelligence. Sir Richard Dearlove urged the Prime Minister to “break away” from the “poisonous” EU and build our own system to rival Europe’s encrypted navigation system. Arguing that we “don’t need” Galileo because we are trusted users of the American GPS systems, Sir Richard urged Mrs May not to give away the UK’s “crown jewels” and said any attempt to keep us in the programme amounted to “Project Fear Mark 2”. In a joint statement with senior defence adviser Professor Gwythian Prins, Sir Richard said: “Staying in the EU Galileo military satellite system after Brexit is a danger to UK defence and security. “We shouldn’t touch Galileo with a barge pole because it would compromise our trustworthiness in the eyes of our true allies, the USA and the Anglosphere Five Eyes Intelligence Alliance. – Sunday Express EU threatens to pull funding from British aid charities in the event of a no-deal Brexit The European Union has been accused of using the world’s poorest as a “bargaining chip” after threatening to pull funding from British aid organisations in the event of a no-deal Brexit. Senior officials at the European commission have been inserting disclaimers in aid contracts warning UK development charities that they could be dropped as a partner in programmes should Britain crash out of the EU next year. The move has brought fierce criticism and warnings it will hurt “the most vulnerable people on the planet”. – Telegraph (£) EU caught wrongly trying to deny funding to British aid charities under a ‘no-deal’ Brexit – The Sun Trump blasts Europe for ‘unfair’ trade policies… The United States will sanction any European companies found doing business with Iran, Donald Trump said during an interview aired on Sunday. His remarks came in the light of his controversial decision earlier this year to pull America out of the Iran nuclear deal and reimpose sanctions – a move strongly opposed by Europe. When asked on the Fox News channel if sanctions would be imposed, Mr Trump responded: “Yes, of course. That’s what we’re doing. – Telegraph (£) …as London weaponises Trump for Brexit talks Britain thinks it has a secret weapon in the Brexit negotiations: Donald Trump. The U.S. president’s increasingly outspoken attacks on the European Union, coupled with the threat of a looming trade war, may work in London’s favor in the final Brexit shakedown, senior U.K. officials and negotiators believe. London and Brussels are currently locked in a stalemate with — according to the EU’s chief Brexit negotiator Michel Barnier — “huge and serious” differences remaining over the state of the final withdrawal agreement and the framework for what the future relationship will look like. But some in the U.K. government believe the geopolitical winds are blowing in their favor, which could see the EU compromise rather than force a political crisis on the U.K. with unpredictable consequences for London — and Brussels. – Politico BMW says US tariffs on EU cars would harm investment – City A.M. Veteran diplomat resigns Estonia post in disgust after Trump encouraged Macron to leave EU – Telegraph (£) Migrants caught lying over pay in effort to stay in UK Hundreds of highly skilled migrants trying to stay in the UK permanently have been found abusing the system, according to the immigration minister. Migrants who had been denied leave to remain were found to have exaggerated their earnings on applications to the Home Office when the figures were checked against their tax records. In almost 90 per cent of the cases reviewed, the applicants had amended their records with HM Revenue & Customs by increasing their earnings by more than £10,000, Caroline Nokes told MPs. Ms Nokes said that the migrants were most likely to have inflated their earnings so that they could claim enough points to stay in Britain, or to have substantially under-reported their salaries to evade tax. – The Times (£) City firms ratchet up hiring and technology investment plans #DespiteBrexit Financial services firms increased hiring and investment in the second quarter in spite of continued nerves over the Brexit process, new figures show. Employment across financial services rose at the fastest pace in a year, with a balance of 24 per cent saying they had increased hiring in the second quarter, according to the survey of major firms by the Confederation of British Industry (CBI) published today. Meanwhile, booming spending on information technology continues to be a major driver of investment, with a balance of 70 per cent of the 100 firms polled saying they will increase spending compared to last year. – City A.M. Merkel coalition faces survival test at crunch meeting over migration deal… Angela Merkel’s Christian Democrat-led party is facing a test of unity today at a crunch meeting over a migration deal reached with the EU.The party, made up of Merkel’s Christian Democratic Union (CDU) and the Christian Social Union (CSU), has gathered in Munich to either accept or reject Merkel’s latest migration efforts following the EU summit on Friday. EU members to set up secure migrants centres on a voluntary basis to process asylum claims. Those whose claims were rejected would be returned to their country of origin, while other refugees could resettle in countries that agreed to take them. – City A.M. …as CSU leader Horst Seehofer offers his resignation Horst Seehofer, leader of Bavaria’s Christian Social Union and German interior minister, offered his resignation from both offices late Sunday in order to defuse a clash with Angela Merkel over refugee policy that threatens to bring down Germany’s coalition. Seehofer said he would step down in order avoid a split of the conservative alliance between his party and Merkel’s Christian Democrats, according to people close to the party. It remained unclear, however, whether the CSU’s leadership, which convened in Munich earlier Sunday to discuss the crisis, would accept the offer. – Politico Jacob Rees-Mogg: Theresa May must keep her Brexit customs union promise or face revolt by Tory MPs At Chequers, the Prime Minister must stick to her “no deal is better than a bad deal” mantra, or risk splitting the Conservative Party like Sir Robert Peel The Prime Minister said, as soon as she took office, that “Brexit means Brexit” and in the last election, in her personal contract with the British people, she declared that we would leave the single market and the customs union. At Chequers this week the nation will see if her promises are kept or if the policy advocated by a former member of the SDP wins favour. – Jacob Rees-Mogg MP for the Telegraph (£) Liam Fox: £20bn frigate deal is great news for UK After we celebrated our bravest on Armed Forces Day, there’s no greater statement of our military prowess than the roaring vote of confidence in British design, engineering and innovation of a British bid winning the biggest peacetime building program in Australian naval history. In a statement of assurance in our military power as we leave the European Union, Britain’s largest defence and security company, BAE Systems, was chosen as preferred bidder for Australia’s SEA 5000 project, a deal potentially worth £20 billion. The design will be based on Britain’s Type 26 Global Combat Ship, confirming the British designed warship as the world’s most advanced in its class. The size of this win cannot be underestimated. It is the biggest naval defence contract in the world over the last decade, chosen against competition, notably from Italy and Spain. – International Trade Secretary Liam Fox MP for the Sunday Express George Hollingbery: I will cement our status as a champion of free trade Last week I joined the Department for International Trade, following in the footsteps of my hugely respected predecessor, Greg Hands. I come to the role ready to continue his work in building an independent trade policy fit for the UK as a modern, free-trading nation. I am fortunate that I find the department in an already excellent place.Thanks to Greg’s tireless work over the last two years, discussions have already taken place with more than 70 countries worldwide to continue our existing trading arrangements. We are already well under way in setting up a new UK Trade Remedies Authority, which will protect UK jobs and businesses from unfair trading practices. – International Trade Minister George Hollingbery MP for City A.M. Roger Bootle: What business leaders know about Brexit … and what they don’t We must assume that the leaders of such businesses understand their own firms’ interests. And those interests should weigh significantly in the balance of pros and cons. But it is vital that Cabinet ministers do not fall into the trap of believing that what some senior business leaders feel is in their interest is necessarily also in the national interest. At this week’s Chequers meeting, doubtless some well-worn arguments about the business/economic interest will be rehearsed yet again. Accordingly, I re-present here what I consider to be the 10 most significant arguments on this subject. – Roger Bootle for the Telegraph (£) Amber Rudd: Theresa May is right – there should be no hard border with the EU when it comes to security The UK played a leading role in originating data programmes that allow countries to know more about who is coming into and moving within the EU. We should have no borders in data and intelligence sharing in protecting citizens. It would be madness if intransigence in Brussels led to this shared law enforcement being diluted as the UK leaves the EU, leading potentially to fatal events. Other EU home secretaries agree. I know a little about resignations – that would be the least of their problems. The UK is not threatening the EU Commission. Our offer to them on security co-operation is unconditional. Strong security is not a competition, it is a partnership. – Amber Rudd MP for MailOnline Jonathan Ford: Brussels might want to consider the impact of a breakdown on its own citizens The latest exchange of cross-Channel gunfire about the City of London’s post-Brexit status has started in earnest. Last week, the EU’s top banking regulator popped up to warn banks that they were inadequately prepared for a so-called “hard Brexit”. They should not rely on hopeful talk about a transition period, said the European Banking Authority. Were talks between London and Brussels to break down, that wouldn’t be on the table. In its absence, cross-border contracts might not be valid. Post Brexit, UK assets would command a higher capital charge.It is not a new message, and it is one greeted in London with a certain weariness. Not because UK regulators exclude the possibility of a no-deal outcome. As things stand, no one could with any certainty. No, it is more the cliff edges the EBA points to should be easy to avoid. – Jonathan Ford for the FT (£) Brexit in Brief If Cabinet Ministers aren’t prepared to listen to business, they should consider their position – Nicky Morgan MP for ConservativeHome Other European countries need to engage with Brexit urgently – Henry Newman for The Times (£) Tax cuts will boost Britain – John Redwood MP for the Sunday Express Football fever can teach Britain a thing or two about optimism – Michael Hayman for City A.M. “No promised land” for Northern Ireland economy after Brexit, warns CBI – BBC News Big businesses put brakes on hiring and investment in Brexit waiting game – City A.M. Celebrity glasses designer opens UK factory – City A.M. EU students get post-Brexit fees promise – BBC News