Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team David Davis and Boris Johnson tell CBI chief she is wrong on remaining in the Customs Union after Brexit Senior Brexit-supporting Cabinet ministers have rounded on Britain’s biggest business lobby group after it said that the UK had to stay in the Customs Union. A senior aide to David Davis, the Exiting the European Union secretary of state mocked the Confederation of British Industry for being wrong on the EU for 30 years. Boris Johnson, the Foreign secretary, also said that the claims by the CBI “made no sense”. Carolyn Fairbairn, director general of the business organisation, will say in a speech today that businesses are “deeply apprehensive” and there has been “too much ideology, too little urgency” in the negotiations. – Telegraph (£) > On BrexitCentral’s YouTube: Liz Truss on the CBI calls for Customs Union membership > David Campbell Bannerman MEP on BrexitCentral: The CBI is wrong yet again – this time on a Customs Union with the EU Theresa May facing Brexit clash as 75% of Tory MPs want free movement to end during transition period… Theresa May is facing a showdown with her own MPs over her Brexit deal, with 75% of Tories wanting freedom of movement to end immediately after the UK leaves the EU. In her landmark speech in Florence in September last year, the Prime Minister confirmed she would seek an “implementation period” with the EU after Brexit day – March 29 2019 – which would see the UK continue to trade with the bloc on “current terms”. If that agreement was carried through, freedom of movement would continue during the implementation period, as would jurisdiction of the European Court of Justice (ECJ). A survey of MPs carried out in the months after the speech revealed that three-quarters of Tories think it would be unacceptable for freedom of movement to continue during a transition period, while 63% oppose the ECJ having jurisdiction in the UK after March 2019. – Huffington Post May’s troops back a hard Brexit, but they’ll give her a rough ride on the way – Anand Menon and Alan Wager for the Times (£) …as Cabinet Brexiteers demand a pledge of an extra £100m per week for the NHS after Brexit… Theresa May will be urged by five of her most senior ministers to commit an extra £100 million per week to the NHS post-Brexit as a row over the Government’s domestic priorities looks set to dominate Tuesday’s weekly Cabinet meeting. Boris Johnson will lead the calls for the NHS to be put at the top of the Conservative agenda amid fears that Mrs May has already conceded the issue to Labour. Ministers have been told that housing, the environment and education are the three most important issues for the Government, but Mr Johnson and others will argue that neglecting the NHS will not only let patients down but will also hand Jeremy Corbyn the keys to Downing St. – Telegraph (£) …while Cabinet Remainers urge May to secure EU trade deal with ‘Norway-style’ payments Pro-Remain cabinet ministers are urging Theresa May to explore whether the UK can secure a post-Brexit trade deal with the EU by making “Norway-style” payments to the bloc to help fill a looming €15bn hole in its budget. Downing Street said this month Britain would “not pay for [EU single] market access” after Brexit, but the pro-European faction in the prime minister’s cabinet believe UK cash could be transferred to the bloc through various mechanisms to facilitate her favoured “bespoke” trade deal. – FT (£) What will the EU look like after Brexit? – FT (£) EU leaders in high‑risk strategy to sow the seeds of softer Brexit European Union leaders in Brussels have drawn up a secret high-risk strategy to undermine Theresa May and exploit Westminster’s political divisions with the objective of “softening” Brexit. In a plan being co-ordinated by Donald Tusk, president of the European Council, the EU is preparing to reject British government proposals for a bespoke sectoral deal when negotiations begin in April. Instead European leaders will insist that if the government sticks to its red lines of pulling out of Europe’s customs union and single market then the EU will offer nothing more than a limited free trade agreement. – Times (£) EU barred from striking favourable Brexit deal on City – Times (£) Brexit transition deal needed “urgently” to avoid cliff edge warns European banks group – City A.M. New passports: How the City can trade freely with the EU after Brexit – City A.M. UK leads the pack as Europe hits its highest level of buyout activity since 2007 – City A.M. Britain’s military could be key to breaking Brussels’ hardline Brexit position and securing a bumper trade deal Britain’s military prowess could still provide the key to breaking Brussels’ hardline Brexit position and secure a bumper trade deal, EU diplomats have revealed. Senior Eurocrats have told The Sun future defence cooperation will be a “very big bargaining chip” for the UK in the upcoming trade negotiations. Despite the funding black hole that has sparked a frontline crisis, Britain is still seen as Europe’s number one military power and is also renowned for having the continent’s best intelligence agencies. Many EU states, especially those bordering Russia, are worried about losing a major partner after Brexit and will push hard for close defence ties. – The Sun President Macron hints at EU-UK trade compromise… Theresa May may be able to convince the EU to compromise on a “bespoke” trade agreement after Brexit, according to French President Emmanuel Macron. According to the BBC, Macron said a future arrangement could fall somewhere between a Canada-style free trade agreement and a Norway-style deal with access to the single market. “For sure you will have your own solution,” the French leader said in an interview with the BBC’s Andrew Marr to be aired Sunday. The EU’s chief Brexit negotiator Michel Barnier had indicated that the U.K. could choose between a Canada or Norway model but not the middle way May is pushing for. – Politico Macron warns Britain must accept open border to access single market after Brexit – Express > On BrexitCentral’s YouTube: Emmanuel Macron on UK access to the single market …and admits that the French would ‘probably’ vote to leave EU France would “probably” have voted to leave the EU if it had held an in/out referendum, according to the country’s leader. Emmanuel Macron attributed the UK’s decision to leave the EU to British voters’ loss of faith in globalisation and unrestricted free markets. The French President suggested there is “always a risk” with votes such as Britain’s 2016 referendum, when asking the public “just ‘yes’ or ‘no’ in a very complicated context”. Asked whether a Leave or Remain vote in France could have ended with the same result, Mr Macron told the BBC’s Andrew Marr Show: “Yes, probably. Probably in a similar context. But our context was very different so I don’t want to take any bets.” – Sky News > On BrexitCentral’s YouTube: President Macron says France would probably vote to leave the EU too Labour’s John McDonnell thinks a City of London Brexit deal can still “be had” despite Macron’s “not feasible” dismissal A special deal for the City to ensure financial services firms can operate across the European Union after Brexit can still be done, shadow chancellor John McDonnell believes, despite the French President essentially ruling out such an agreement. “Im really worried that if we don’t get the passporting thing right it will impact our financial sector and also our services sector overall, so that’s something we’ve got to negotiate,” said McDonnell, speaking on the BBC’s Andrew Marr Show. – City A.M. McDonnell says the UK shouldn’t pay for access to the Single Market – City A.M. Lord Mandelson’s secret vow to help Brussels in Brexit talks: Labour peer said he was ‘deeply committed’ to the EU in letter to chief negotiator – Daily Mail > On BrexitCentral’s YouTube: McDonnell says Labour wants ‘reformed single market’ City hiring to rumble on – ‘despite Brexit’ The Bitcoin boom is set to boost hiring in the City this year as financial companies race to stay ahead of the game in developing Blockchain technology, a leading headhunter has predicted. Recruiter Morgan McKinley claimed the “increasing need for blockchain and cryptocurrency” could boost the number of available jobs this year, with the boom in interest in cryptocurrencies such as Bitcoin driving demand for blockchain developers and technology specialists within the finance industry. – Telegraph UK growth rankings hold firm amid Brexit talks The UK’s economic growth potential held firm in the first year following the Brexit vote and could climb the global rankings in the years ahead, thanks in part to backing for emerging technologies such as Artificial Intelligence (AI). The accountant KPMG’s annual survey of global growth potential has ranked Britain 13th on its growth potential indicator, ahead of Germany which dropped two places to 14th place and France which failed to make the top 20 league table. – Telegraph Lord O’Neill says Brexit outlook is brighter as “robust” UK economy fares better than he expected – City A.M. Lord Adonis and Jacob Rees-Mogg go head to head on Brexit Sarah Smith discusses the extent to which the House of Lords can block Brexit – or at least amend the related legislation – with the leading Brexit campaigner Jacob Rees-Mogg MP and ardent pro-EU peer Lord Adonis. – BBC News Jacob Rees-Mogg offers superb challenge to Remoaner peers plotting to thwart Brexit – Express Rees-Mogg points the way forward on Brexit – Express editorial > On BrexitCentral’s YouTube: Jacob Rees-Mogg on the Lords’ opposition to Brexit > On BrexitCentral’s YouTube: Jacob Rees-Mogg on Lord Adonis’s calls for a second referendum Teesside keen to capitalise on Brexit with free port push Politicians from both sides of the political divide have joined forces to urge chancellor Philip Hammond to allow parts of Teesside to be converted in free ports. Conservative party Tees Valley mayor Ben Houchen said Brexit will “provide the UK with economic freedoms, and the opportunity may exist for us to create free ports”. The letter was backed by 50 business leaders, who support the idea of having a tariff-free zone. Local MP Anna Turley also gave the idea her blessing. – City A.M. Germany’s Social Democrats vote for coalition talks with Merkel Germany’s Social Democrats have backed the opening of formal coalition talks with Angela Merkel’s conservative bloc, in a move that could end the country’s protracted political deadlock and move the chancellor a step closer to a fourth term in office. After more than four hours of tense debate, 362 out of 645 delegates at an extraordinary SPD conference voted in favour of the talks. The negotiations will be based on a preliminary deal struck earlier this month between SPD leaders and the chancellor’s Christian Democratic Union and its Bavarian sister party, the Christian Social Union. – FT (£) Germany’s coalition deal is big news -for Brexit, the EU, and the established order – Telegraph editorial UKIP leader Henry Bolton no confidenced by party’s ruling body UKIP’s ruling national executive committee (NEC) has unanimously backed a vote of no confidence in party leader Henry Bolton. Mr Bolton has faced repeated calls to quit over offensive texts sent by his former girlfriend. But he has said he will defy the committee and continue as leader, as a contest would finish the party. Party members will now be given a vote on whether the former Army officer should remain in post. – BBC UKIP deputy leader and immigration spokesman quit – Sky News UKIP haunted by the ghost of Nigel – Matthew Goodwin for Politico Chris Bickerton: Brexit is not unique to Britain, look at Germany. EU gripes are what most unites us with continental nations There is a way of thinking about Brexit that has proven popular because it is of comfort both to the UK and to the remaining 27 member states of the EU. This is to view it as a uniquely British affair, one that realigns this country with its old traditions – in Europe, but not a direct part of it; a bridge between Europe and the US. The continental version, meanwhile, views Brexit as a liberation for the EU after putting up for decades with grumbling Brits. As one French journalist put it a day after the referendum: “My English friends, thank you for your sacrifice.” – Chris Bickerton for the Telegraph (£) Christian May: The European Union stands to benefit from a City Brexit deal French President Emmanuel Macron made quite an impression during his brief visit to the UK last week. Not since the visit of President Obama in 2011 has the British media been quite so excited about catching a word from a visiting politician. Angela Merkel may be a step closer to forming a government (Berlin watchers think one could be in place by Easter) but she has vacated the role of supreme European leader and Macron has seized the crown. When it comes to Brexit, senior government figures talk privately of Merkel “no longer being on the pitch” as the wheels and machinery of British diplomacy are turned towards France. – Christian May for City A.M. Ben Houchen: Brexit. We need Project Fearless – and it starts with freeports. Let’s kick off with one in Teesside It’s obvious to anyone following politics since the European Referendum that the Government have been knocked from pillar to post when it comes to Brexit and the negotiations. Following the result, Vote Leave and the other associated campaigns thought the job was done, and they’ve largely packed up and gone home. I say that as someone who was on the board for Business for Britain North East, and campaigned strongly for Brexit. After the referendum, a job was done; however, to many remain supporters the vote itself was not the end. Many of the organisations involved in Remain and the organisations they were involved in are still campaigning hard. We’ve seen this manifested in calls for a second referendum, for staying in the single market and the customs union – through to any bad news announcement being because we’re leaving, and any good news announcement being “despite Brexit”. – Tees Valley Mayor Ben Houchen for ConservativeHome Trevor Kavanagh: Timid Theresa May must fight EU bullies Jean-Claude Juncker and Michel Barnier on Brexit for our future as an independent sovereign state Cinema fans here and in America are leaping to their feet to cheer Winston Churchill’s rousing “fight them on the beaches” speech in Darkest Hour. This was the crisis point in World War Two when Churchill vowed to fight the Nazis to a standstill while Cabinet appeasers clamoured for peace at any price. The power of his words seems vividly potent to a generation who regard the Battle of Britain as just another war story and Churchill as a hazy legend. We are not at war today, but there are similarities between Britain then and now. We are fighting for our future as an independent sovereign state against opponents who want us punished. There are voices on the home front who insist any deal is better than a bad deal. – Trevor Kavanagh for the Sun Wolfgang Munchau: Brexit ‘Revocateurs’ are wrong to put faith in another referendum Advocates of a second referendum also make an implicit, but wrong assumption that the UK can revoke the Article 50 process unilaterally. People are, of course, entitled to their private legal opinions. But you should at least be aware that the European Commission does not see it that way. Nor does the European Council. Nor does the European Parliament. Think for a moment how the European Court of Justice would view this. The court would consider the broader implications of its decision. If it ruled in favour of the UK, member states would be free to invoke Article 50 for political blackmail, and without risk. – Wolfgang Munchau for the FT (£) Brexit in brief We’ve seen enough to know Theresa May can’t change. She must go – Juliet Samuel for the Telegraph Channel 4 reported to Ofcom after ‘tawdry’ cash for Brexit investigation is pulled at 11th hour – Telegraph (£) Tory grandees Lord Lansley and Andrew Mitchell cry foul over ‘Brexit sleaze’ sting – Times (£) Nigel Farage and Arron Banks in talks over new political project – Express