Britain will cut taxes and take on the EU if it tries to ‘punish’ UK for Brexit, David Davis is reported to have suggested in a leaked memo… Britain is prepared to take on the European Union and compete for business by slashing taxes if France takes a “hostile” position during negotiations, David Davis has suggested. In a meeting with the City of London Corporation, the Brexit Secretary floated the idea that the UK will switch an “alternative” negotiating strategy if the EU chooses to “punish” Britain… Mr Davis said that he thought it “unlikely” Britain would stay in the European Single Market after Brexit, as the EU would be “inflexible” about the need to retain freedom of movement. – Daily Telegraph France’s ambassador to London feels that her country has wrongly become Britain’s punchbag – The Times (£) …as it emerges he also rebuffed City hopes for a Brexit transition deal David Davis, Britain’s Brexit secretary, said he was “not really interested” in a transitional deal to cushion Britain from the effects of Brexit and that he would consider one only in order to “be kind” to the EU. Financial companies have pressed the government to agree a transition period after Britain leaves the bloc and before new trade terms are finalised, during which current arrangements remain in place. But speaking in mid-November, Mr Davis told a private meeting with the City of London Corporation that negotiating a transition, as recently championed by Mark Carney, the Bank of England governor, would not benefit the UK and could delay the Brexit process. Mr Davis accepted, however, that Britain’s “sudden” departure could compromise the EU’s financial stability and said he would be “more in favour” if the EU asked Britain for a transition. “I will be kind,” he said, according to the CLC’s account of the meeting. – FT (£) Full memo of David Davis meeting with the City – FT (£) Banks want to be subject to EU laws for five years in post-Brexit deal – Reuters Memo cited by FT is interpretation of Brexit discussion says PM’s spokeswoman – Reuters Proposal for UK ‘associate EU citizenship’ to be fast-tracked, says Guy Verhofstadt The European Parliament’s top Brexit negotiator says he plans to fast-track a proposal to offer UK nationals “associate EU citizenship”. The proposal “will be on the table of the upcoming Brexit negotiations”, liberal MEP Guy Verhofstadt said. UK nationals could have the option of paying a fee in order to keep rights such as freedom of movement in the EU and a vote in European elections. Mr Verhofstadt said strong interest in the idea meant it could not be delayed. – BBC Is the EU mischief-making by offering EU citizenship to Brits? – The Independent editorial EU confirms no separate Brexit talks with Scotland The European Union has confirmed to STV News it will not negotiate separately with the Scottish Government over Brexit. A spokesman for the European Commission, the EU’s executive body, made the statement ahead of a meeting between its president Jean-Claude Juncker and former First Minister Alex Salmond. – STV Arch federalist Jean-Claude Juncker suggests that countries which leave the EU, including the UK, will not survive Delivering a speech to mark the controversial Maastricht Treaty’s 25th anniversary yesterday, [Junker] said: “Those who think the time has come to deconstruct, to put Europe in pieces, are totally wrong. We won’t exist as single nations without the European Union.” Saying Britain as well as France and Germany face being booted off the group of the world’s richest nations, he added: “In 20 years from now, not one single member state will be a member of the G7”. – The Sun Second Brexit legal challenge could be tabled in Irish courts Jolyon Maugham QC, a barrister who advised Ed Miliband on tax policy and is now campaigning for a second EU referendum, is attempting to raise £70,000 in public donations. He aims to bring an action in the Irish High Court in which he hopes to establish whether an Article 50 notification sent by the UK to Brussels could be overturned at a future date. He is taking on the Irish government, the European Council and the European Commission and he is hoping UK MEPs who want the UK to remain in the EU will spearhead his legal action. – Sky News Funds sought for Brexit court case in Ireland – BBC Remainer Andy Burnham insists leaving single market will be good for the economy The former Shadow Home Secretary – who is the frontrunner to be Greater Manchester’s first mayor – broke ranks with his Labour colleagues by suggesting leaving the single market would reverse de-industrialisation in the North. In a speech at a conference in Leeds, he demanded the right to “pick winners” – which, he argued, is not possible with current EU state aid restrictions. – Daily Mirror Don’t sneer at northerners for voting for Brexi, there are sound reasons – Helen Pidd for The Guardian David Cameron accused of patronising voters after blaming ‘the rise of populism’ for Brexit The former Prime Minister, speaking at a US university for an undisclosed fee, said he saw “more trouble ahead” as people voiced their dissatisfaction with the direction of society. Mr Cameron insisted that he had no regrets in holding the referendum – despite acknowledging that it would be remembered, unfairly in his view, as his lasting legacy for the country. – Daily Telegraph Record UK exports drive huge narrowing in trade deficit Record exports drove a significant reduction in Britain’s monthly trade deficit in October, setting a “solid base” for growth in the final quarter of the year. Exports of goods rose by £2.1bn to £26.8bn in October, according to the Office for National Statistics (ONS). This is the highest level since records began in 1997, and was boosted by strong goods exports to non-EU countries, which jumped to a record £14.4bn. – Daily Telegraph Michael Gove speaks of his regret at stabbing Boris Johnson in the back after Brexit vote Michael Gove has opened up on his decision to knife Boris Johnson and admitted: “I would have sacked me too.” In a tell-all interview with Fern Britton the top Tory admits it was a “mistake” to kill off his Vote Leave pal’s Tory leadership challenge in July and bid for the top job himself. And he said Theresa May was right to fire him as Justice Secretary as a result.“I shouldn’t have done it in that way,” he said. “When Theresa became Prime Minister she said that she no longer had a place for me in the Cabinet and, to be honest, if I’d been in her shoes I would have sacked me too,” he said….Fern Britton meets Michael Gove can be seen on BBC One at 10am on Sunday, 11 December. – Daily Mirror Paul Stephenson: How we won the referendum We were constantly told by well-meaning people on our own side that we needed to come up with a good response to the Remain camp’s powerful message that three million jobs would be lost if Britain left the EU. We ignored them. And with good reason… Instead, we refused to play their game and stuck to broad principles: We wanted control of our borders, free-trade deals and to take back control of the huge sums of money we sent to the EU every week. This wasn’t an attempt to ignore economic arguments but to play them on our terms. Telling people about the large amount of money they sent to the EU every year was an extremely persuasive economic argument… Of course, our campaign claim of the now infamous £350 million a week that Britain sends to the EU was not completely accurate. It was an underestimate. According to the Office for National Statistics. our total contribution to the EU is £19.1 billion a year — or £367 million a week. – Former Vote Leave Director of Communications Paul Stephenson for Politico Leave campaign won because it ‘prioritised’ new voters – Marketing Week Tom Harris: If you hoped Sleaford was a Brexit blip for Labour, you’re in for a whole lot worse Much has already been written about Labour’s irrelevance in post-EU referendum Britain (some prefer to describe it, wrongly, as “post-Brexit”, but Brexit hasn’t happened yet). And it’s certainly true that while attention remains focused on this particular issue, Labour is seen as wanting for something relevant to say. Remainers will turn to the LibDems, Leavers will look to the Tories and Ukip. – Tom Harris for the Daily Telegraph (£) Sleaford by-election has given Theresa May and the Brexiteers more ammunition – Telegraph editorial Labour MPs say they fear party is alienating both sides of EU debate – The Guardian After the Sleaford by-election, what’s next for Brexit? Watch our journalists’ analysis – Daily Telegraph Matthew Parris: You turn if you want to. I’m still a Remainer I can imagine looking very silly, but I’ll stick with my instincts: that the Leave leaders have gone a bit mad. That English exceptionalism’s a bit fascist. That we’ve been awkward but useful partners in a sensible attempt by the rest of our continent to get along. I liked it that way. So I can wish Mrs May the ingenuity to locate a Brexit that’s better than what we had. And I can wish former Remainers plausibility in pretending they aren’t still Remainers. But I’m abandoning the pretence. – Matthew Parris for the Times (£) Lord Young of Graffham: When we leave the EU we’ll see how much it has held us back Let’s get on with the negotiations. When we leave we will appreciate how much the EU has held us back. Instead of only having trade agreements to which no member objects, we can just contract direct with whomever we like. Already countries amounting to two thirds of global GDP have said they would like to trade directly with us again. In the coming years, with hard work, we can resume our position as the greatest trading nation on earth. – Lord Young of Graffham for The Times (£) How Britain can make the best out of Brexit – Philip Collins for The Times (£) Brexit comment in brief Nigel Farage exclusive interview: On his special relationship with Donald Trump and why he can help bring peace to the Middle East – James Kirkup for the Daily Telegraph (£) Between them, May and Johnson risk endangering an orderly Brexit – Paul Goodman for ConservativeHome Ed Miliband tells Owen Jones that the Tories don’t know what they want from Brexit – The Guardian Blair’s anti-Brexit campaign is opportunistic and nothing else – Jack Beresford for the Huffington Post Ken Clarke symbolises the passing of the old Europhile Tory religion – Charles Moore for the Daily Telegraph (£) After the referendum, the people, not parliament, are sovereign – Vernon Bogdanor for the FT (£) Eurocrats should make the most of their new golden egg: it could be their last – Douglas Carswell on his Talk Carswell blog McDonald’s decision to move international HQ to London paints a vision of Britain’s Brexit future that everyone should welcome – The Sun Says Why Brexit is must-see TV – Charlotte Henry for CapX Brexit news in brief Johnson refuses to be more diplomatic – The Times (£) Italian Five Star politician calls for referendum on euro – Daily Express Germany falling as exports drop short of expectations – The Times (£) Brexit not seen as a threat to small businesses – The Actuary Monte Dei Paschi bailout: what you need to know – Guardian Briefing U.K.’s departure from the EU creates “an opportunity to reduce the complexity of the Union,” – Politico