Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Government hits back at no-deal ‘armageddon’ warning… A spokesman for the Department for Exiting the European Union dismissed the reports, saying: “These claims are completely false. A significant amount of work and decision-making has gone into our no-deal plans, especially where it relates to ports, and we know that none of this would come to pass.” And pro-leave ministers hit back, with one describing the reports as “hysterical”. Rees-Mogg, the chair of the European Research Group, a backbench pro-Brexit group, insisted nothing could prevent Britain from importing whatever goods it needed. “Except in limited fields such as arms sales, an exporting nation, in the absence of sanctions, has no legal mechanism to obstruct trade. Hence the Whitehall document is project fear on speed,” he said. But other Brexiters acknowledged the risks of leaving without a deal, and blamed the lack of preparation on the highest levels of government. – Guardian Government denies no deal Brexit plans by civil servants predict “armageddon” – City A.M. Government under pressure to publish warnings of ‘Doomsday Brexit’ – Sky News MPs blast doomsday reports Britain would run out of food and medicine in ‘no deal’ scenario – The Sun ‘Project Fear on speed’ – Jacob Rees-Mogg slams Remoaners over Brexit scaremongering – Express Apocalypse-obsessed mandarins should take action now to protect the UK from any Brexit disruption – Telegraph editorial (£) …as Home Secretary Sajid Javid decisively shuts down ‘Doomsday Brexit’ report… The Home Secretary Sajid Javid dismissed suggestions of a “Doomsday Brexit” report that will leave the country short of medicine, fuel and food and firmly stated that none of that will “come to pass” during a BBC interview. The MP for Bromsgrove claimed he was “confident” of getting a Brexit deal but had been “deeply involved” in no deal preparations. He told the BBC’s Andrew Marr Show: “I have to say I don’t recognise any bit of that at all and as Home Secretary I am deeply involved in ‘no deal preparations’ as much as I am in getting a deal – I’m confident we will get a deal. “But I do not recognise any of that report. From the work that I have seen and the analysis that has been done, those outcomes I don’t think any of them would come to pass. In terms of no deal it is important for the French and for the Dutch and others that trade continues even in a no deal scenario, so they will be making preparations.” – Express > On BrexitCentral’s YouTube: Sajid Javid: I don’t recognise armageddon-style no-deal scenario reports …and says Britain will have Brexit policies ready for June EU summit Britain will have a good set of proposals on Brexit policy ready for a meeting of European Union leaders this month, home secretary Sajid Javid said on Sunday, adding that he expected a positive response from Brussels. He rejected a newspaper report saying failure to reach an exit deal with the EU would cause immediate shortages of medicine, fuel and food. Prime Minister Theresa May is struggling to find a proposal on post-Brexit customs arrangements – the biggest stumbling block so far in exit talks – to take into negotiations with Brussels as the clock ticks down to Britain’s scheduled exit in March 2019. – Reuters Brussels refuses to extend UK trade deals during transition Britain will have only weeks to negotiate deals with dozens of countries after the European Union refused to help to extend any existing trade agreements before the legally binding signing of a Brexit withdrawal treaty. European officials have told the government that they will not ask the EU’s trading partners to allow Britain to benefit from current trade deals with key countries such as Japan or South Korea until Theresa May signs the final legal text of a Brexit deal. The decision means that Liam Fox, the trade secretary, will have less than three months between the conclusion of withdrawal negotiations at an EU summit in December and Brexit day, March 29, 2019, to negotiate the continuation of Britain’s current free trade agreements. – Times (£) Britain needs new partners in Middle East, says trade envoy – Times (£) DUP leader threatens to pull support for May Government over special Northern Ireland deal Arlene Foster has threatened to pull out of a deal to prop up Theresa May’s Government if it adopts a Brexit deal that treats Northern Ireland differently from the rest of the UK. The Democratic Unionist Party (DUP) leader warned that customs parity with Britain was a “red line” for her party, whose 10 MPs support the Conservatives in Westminster under a “supply and demand” arrangement. Cabinet ministers are currently examining ideas to solve the Irish border issue after Britain quits the European Union. One idea reportedly proposed by Brexit Secretary David Davis – and dismissed by Downing Street – would see Northern Ireland covered by a joint regime of UK and EU customs regulations, allowing it to trade freely with both, plus a 10-mile wide “special economic zone” on the border with Ireland. – Belfast Telegraph > On BrexitCentral’s YouTube: Arlene Foster on reports of a joint UK-EU status for Northern Ireland London Mayor Sadiq Khan urges MPs to back Lords’ pro-Remain changes to Brexit bill… The London Mayor has called on MPs from all parties to set aside their political careers and consider supporting soft Brexit Lords amendments as they return to the Commons in votes that he said were as significant as those that took Britain into the Iraq war. Sadiq Khan in effect added his voice to those calling on Jeremy Corbyn to oppose Britain’s departure from the single market as he said MPs should “be brave” and support EU withdrawal bill amendments in the coming weeks. – Guardian …as Remainer and former peer Andrew Lloyd Webber accuses Lords of frustrating ‘the will of the people’ over Brexit Mr Lloyd Webber quit as a Conservative peer last year, citing work commitments. But today he hit out at the Upper Chamber over its involvement in the Brexit process, saying it had become increasingly politicised and was standing in the way of voters’ wishes. Mr Lloyd Webber quit as a Conservative peer last year, citing work commitments. But today he hit out at the Upper Chamber over its involvement in the Brexit process, saying it had become increasingly politicised and was standing in the way of voters’ wishes. – Politics Home Lloyd-Webber: Lords wrong on Brexit – The Times (£) > On BrexitCentral’s YouTube: Andrew Lloyd Webber: The unelected House should not vote down Brexit Britain hints at staying in European VAT area after Brexit Britain is taking what a minister has described as an “active role” in shaping new EU value added tax regulations for the 2020s, suggesting the Treasury is planning for the UK to remain inside the bloc’s VAT area after the Brexit transition period. In a letter seen by the Financial Times from Mel Stride, financial secretary to the Treasury, to Charlie Elphicke, MP for Dover, the minister also says: “The government aims to keep VAT processes after EU exit as close as possible to what they are now.” If Britain seeks to remain inside the EU VAT area, it will continue to be bound by rules set in Brussels that are ultimately policed by the European Court of Justice, breaking one of Theresa May’s negotiating red lines. – FT (£) Open Europe think tank says Britain should accept continued EU regulations in goods but not in services… Britain should accept continued EU regulations in goods in return for retaining access to the EU single market, one of the thinktanks closest to Downing Street has proposed. After consultations across business and politics, a report from Open Europe concludes: “There is no strong business case for immediate significant divergence from the EU’s regulatory regime.” It says adherence to EU standards would not restrict growth in the export of British goods outside the EU. The report says the proposed “enhanced mutual recognition agreement would mean most goods manufactured by in one country would be considered pre-authorised for sale across others”. – Guardian Britain ‘should accept EU rules on goods but not services’ like Switzerland and Ukraine – The Sun Accept some EU rules, Eurosceptic group urges – The Times (£) Michael Gove ally warns Theresa May still has no ‘clear vision’ on Brexit as he calls for compromise – Telegraph Stephen Booth: Our Brexit proposal. Integrate for goods, diverge for services – Stephen Booth for ConservativeHome Brexit Britain should be a rule-taker on goods, but not services – Lord Wolfson, Open Europe Chairman, for the FT (£) …as senior Tory MEP says UK ‘should walk’ from EU trade deal rather than City become ‘rule taker’… The UK should be prepared to walk from a Brexit trade deal with Brussels to protect the City rather than settle for becoming a “rule taker” of the EU, a senior Conservative MEP has said. Concerns have been growing in the City and Westminster that the UK’s preferred outcome for financial services – a trade agreement allowing substantial market access based on “mutual recognition” of standards on both sides – will not be reached. Michel Barnier. the EU’s chief negotiator, has repeatedly ruled it out as “cherry picking”, leaving City bosses and government officials with no choice but to privately consider alternatives. – Telegraph …with concerns over whether the EU will accept the UK’s preferred post-Brexit model for financial services The government’s preferred post-Brexit trading model for the City remains uncertain amid growing concerns that Brussels is not prepared to compromise. Mutual recognition, the post-Brexit system heavily promoted by the financial services sector as well as Whitehall, has failed to win the support of EU chief negotiator Michel Barnier. One Square Mile source familiar with the negotiations told City A.M. the UK was “getting high off its own supply – they’ve come up with a great idea but not stopped to ask whether EU will actually go for it.” – City A.M. ‘Freeports are answer to post-Brexit storm’ Harbour and dock operators have called on the government to embrace freeports to boost the post-Brexit economy and regenerate struggling coastal cities and towns. In response to a government consulation into the national planning policy framework, the UK Major Ports Group has said that ministers should widen a commitment to propping up rural areas and the farming community after the country leaves the EU. It says that Britain should embrace freeports, which could rejuvenate places such as Teesside and its redundant Redcar steelworks. – The Times (£) Brexit Britain wants to be a world leader in driverless vehicles Britain is stepping up its plans to be a leader in self-driving cars. The government is awarding 25 million pounds ($33 million) this week to as many as six projects that will research and test autonomous vehicles on highways and on trials of remote-control parking. It’s the second competition in a program that Richard Harrington, the U.K.’s automotive minister, predicts will lead to driverless cars in production within the next decade. Britain’s post-Brexit industrial strategy has a heavy focus on technology, with artificial intelligence and autonomous vehicles being two areas at the heart of it. The nation is going up against the U.S., which is further advanced in both technologies. Some policy makers expect that leaving the European Union will allow it to offer subsidies and tax breaks that are currently restricted under common market rules. – Bloomberg The Sun: Project Fear’s laughable doomsday report is trying to scare Britain away from a successful no-deal Brexit The prediction of a no-deal Brexit apocalypse is both ludicrous and hysterical. A civil service briefing claims it would leave us without food, petrol and medicines. Jacob Rees-Mogg has rightly dismissed it as “Project Fear on speed”. It is a wicked attempt to terrify us into bottling a no-deal Brexit. The doomsday report was leaked by officials who believe Brexiteers are “too bullish” about a no-deal Brexit. Given how useless other dramatic Project Fear predictions have been, the latest should be taken with several bucketloads of salt. The pro-EU fanatics jumping on this story are, of course, the very same people who have screamed since the Referendum about our economy collapsing and hundreds of thousands of jobs being lost. Voters are wise to their guff. – The Sun Frank Field MP: UK needs to toughen up I hope that an increasing number of Labour MPs will support implementing the referendum decision. It is important to remember that these are not Tory Bills any more than they would be Labour Bills if we were in Government and fulfilling our promise to the implement the decision made on the June 23, 2016. Many Labour members face a difficult choice. They voted for Article 50 because their constituencies overwhelmingly voted for Brexit. Many made plain that they would support the Prime Minister in triggering Article 50, even though they didn’t personally want to leave the EU. Much has happened since that vote. What we have seen is the EU negotiators playing on the weakness of the Government, as many on our side are prepared to “improve” the Brexit Bills, knowing that, of course, they are wrecking them. – Labour MP Frank Field for the Express Henry Newman: There is a third way on Brexit Our plan is based on analysis of the EU’s existing deals. We looked at Norway and Canada — which are framing the British debate — but also Ukraine’s association agreement, South Korea’s trade deal and Switzerland’s complex relationship. There’s no single model for how the EU works with other countries. When it comes to the UK economy we take a different approach on goods and services. Around half of our goods head to the EU. UK industries have supply chains crossing Europe and, given our geography, there are few easy alternatives to our European neighbours. Even if we left with no deal, most manufacturing businesses would continue following EU rules, especially in highly-regulated sectors such as chemicals or automobiles. So the government should maintain the EU’s existing rules on goods and agree broadly to follow future rules. It would be open to the UK to refuse a new egregious rule after Brexit but this could have an effect on market access or the overall relationship. In return for maintaining alignment we should be able to export products to the EU without regulatory checks. – Henry Newman for The Times (£) Trevor Kavanagh: Theresa May must swagger into EU talks with a swag bag to make Brexit successful Chief EU bully Michel Barnier last week spat out the words that should be carved on the hearts of all those fighting to overturn Brexit. “We don’t want to negotiate. We don’t want to compromise,” he confessed to Vice online news. Now we all know. Our grovelling attempt to buy a friendly, friction-free and costly trade deal was doomed from the start. Brussels was never going to let Britain be better off outside. The Commission was determined to punish us for daring to leave. For believers in ever-closer union this an immutable article of faith. Abandoning the True Path is a heresy punishable by economic death. If we make it a success, we put the sacred Project in peril. – The Sun Simon Wolfson: Brexit Britain should be a rule-taker on goods, but not services To break the deadlock, hardline Leavers must drop their ideological intransigence and recognise that every trade deal requires some transfer of sovereignty. In certain areas, Britain can and should accept rules where the practical costs are low and the gains are high. On the other hand, I have listened closely to my diehard Remainer colleagues in the House of Lords. They seem to believe that only complete adherence to all EU rules, rights and institutions will save us from ruin. Their numerous amendments to the Brexit legislation are a recipe for permanent zombie membership of the bloc. This is not what people voted for. – Open Europe Chairman Lord Wolfson for the FT (£) John Redwood: More Project Fear leaked to the newspapers I find it difficult to believe 2 years on the civil service are still writing and leaking absurdly pessimistic scenarios about Brexit. Ministers have offered clear directions that they should work up the best way of leaving without a deal. That is what they were charged to do. I am told by Ministers that is what they are doing. Ministers assure us all will be ready to leave in March 2019 and to carry on importing goods from the EU if we still want to buy them. The Germans are particularly keen that should be true, given the size of their trade surplus! So why are some other civil servants inventing nonsensical outcomes and leaking them when Ministers have asked them not to and told them these forecasts are just silly? Apparently according to the latest leak someone in the civil service thinks if we leave without a deal Calais will not co-operate and so create interruptions to the supply of imported food and pharmaceuticals to us. No sensible person could make that up. – John Redwood’s Diary Matthew Kilcoyne: No need to panic – Trump’s tariff tantrum is Britain’s opportunity So let’s speak behind the scenes, and capitalise on the fact that Trump’s more reasonable administration in the back office is on-side with the UK. The trend to multilateralism is also out of vogue in DC, and that presents an opportunity to the UK. We’re looking for bilateral partners to reduce trade barriers, tariff and non-tariff alike. Officials and thinkers there want the same thing. We should push home that we’re a free trade nation, that we’ll work with anyone that wants to bring down barriers, and we won’t throw rocks in our own harbour. If the EU insists on retaliation, that message could have real value. In the long run, Britain has a chance to reset the relationship between Europe and the US. Ironically, our role as a bridge between the two continents might not be ending as we leave the EU, but just beginning again. – Matthew Kilcoyne for City A.M. Brexit in brief May needs vision to deliver Brexit the people voted for – Robert Bates for the Commentator Lack of European reform, not Italy, will break the eurozone – Wolfgang Munchau for the FT (£) Visa rules for skilled tech staff have passed their use by date – Eileen Burbidge for the Telegraph (£) We need to tackle what the EU shouldn’t be – Jason O’Mahony for the Times (£) Control of immigration is vital but the target is not working and needs to be scrapped – Times editorial (£) Merkel endorses Macron’s EU military plan – Politico ‘It’s a simple question!’ Labour’s Barry Gardiner skewered in Brexit immigration row – Express Theresa May expected to lift visa cap for doctors from outside the EU within weeks – Telegraph (£)