UK economy to grow even faster this year than was forecast before the Brexit vote Independent forecasts compiled by the Treasury show that the economy is performing far better than expected in the immediate aftermath of the vote. In June the average economist thought GDP would grow by 1.8pc in 2016, a forecast which was slashed in the wake of the 23 June referendum. But since then the country has proved resilient, so economists now anticipate growth of 1.9pc for 2016. – Sunday Telegraph Official post-Brexit GDP figures expected later this week – The Observer Growth to confound Brexit doom-mongers – Sunday Times (£) Public give Theresa May vote of confidence over Brexit negotiations Theresa May is trusted by more than twice as many voters as Jeremy Corbyn to run the economy well and handle Brexit negotiations effectively, according to an Opinium/Observer poll to mark her first 100 days as prime minister. The findings also show May is regarded as strong, decisive, and able to get things done and stand up for Britain’s interests abroad by more than double the number of voters who attribute these qualities to the Labour leader. – The Observer The EU has taken Brexit badly, but Theresa May will win in the end – John Rentoul for The Independent With the EU-Canada trade deal in tatters, will the UK also be at the mercy of Wallonia…? Ministers fear it could take a decade to secure a post-Brexit free trade deal with the European Union after a little-known region in Belgian blocked a flagship agreement with Canada. Crisis talks between EU leaders and Canada collapsed on Saturday following the decision of Wallonia, with a population of 3.5 million, to torpedo the deal… One minister told the Telegraph: “It could take a decade to agree. Britain is at the mercy of the Walloons.” – Sunday Telegraph European Parliament President Martin Schulz still “very optimistic” a solution could be found to save the EU-Canada trade agreement – Politico The EU is dysfunctional at negotiating trade deals – which is bad news for everyone – Harry Phibbs on ConservativeHome …although the Government has plans for a big tax cut to stave off a hostile EU A secret plan to slash corporation tax by half has been hatched as a “nuclear option” to counter threats that Brussels will impose a “brutal Brexit” on Britain. Under the plan the UK would cut the tax’s rate from 20% to 10% if Britain’s EU rivals blocked a free trade deal with the UK or refused to give financial services firms access to the European market. Senior figures in Downing Street believe such a drastic move on business taxes would encourage firms to stay and make the UK a magnet for new companies, as Ireland and Singapore have become. – Sunday Times (£) ‘Remoaner’ BBC needs to stop booing Brexit, says Tory grandee John Redwood Mr Redwood, who was a prominent Leave supporter, accused the BBC of “distorting” stories by seeing everything through “Brexit glasses”. He claimed that even when other factors such as economic movements in the US affected the UK it was blamed on the referendum. He said: “The BBC seem caught in a time warp. So often their idea of news is based on reheating old Remain stories and lines from the referendum debate.” – Sunday Express Leading banks claim they could pull out of the UK early next year over Brexit Britain’s biggest banks are preparing to relocate out of the UK in the first few months of 2017 amid growing fears over the impending Brexit negotiations, while smaller banks are making plans to get out before Christmas. The dramatic claim is made in the Observer by the chief executive of the British Bankers’ Association, Anthony Browne, who warns “the public and political debate at the moment is taking us in the wrong direction”. – The Observer Brexit politicians are putting us on a fast track to financial jeopardy – BBA boss Anthony Browne’s article in The Observer Brexit threatens UK fund management’s global influence – EY’s Julian Young in the FT (£) RBS braced for Brussels to take control of failed branch sale Royal Bank of Scotland is braced for the European Commission to take control of a section of its business as punishment for failing to meet promises made as part of its 2008 taxpayer bailout. The bank, still 73% owned by the taxpayer, has just 10 weeks left to announce a sale of a network of 300 branches in order to meet a deadline agreed with Brussels. – Sunday Times (£) If you thought we were taking back control, just wait till Brussels tells us what to do with RBS – Aimee Donnellan for the Sunday Times (£) Japanese car giant Nissan to deliver Brexit boost with promise to build new SUVs at Sunderland plant The Japanese firm said it will decide whether to produce the next Qashqai in the UK in the next month. But Sun columnist James Forsyth reveals the deal has been done after Business Secretary Greg Clark flew to Japan to sweeten company chiefs. Claiming Nissan would halt production in the North East was a central plank of Project Fear before the EU referendum. – The Sun Brexit relief as government insiders expect Nissan to announce it is building its new car in Sunderland – James Forsyth for the Spectator’s Coffee House blog £4million plan to boost electric car numbers in bid to calm Nissan’s Brexit fears – Hartlepool Mail …as Adobe says ‘Brexit did not make us blink’ as it expands UK base The technology giant Adobe is planning to expand in the UK in a vote of confidence after Britain’s decision to leave the EU. The American software company is building a new sales office to cover northern Europe in London, planning to double the size of its current one. – Sunday Telegraph Soubry and Morgan tell May to call the Brexit attack dogs off Hammond Theresa May was last night urged by former Tory Ministers to call off the ‘attack dogs’ in the bitter Brexit battles with Chancellor Philip Hammond. Anna Soubry and Nicky Morgan joined forces to make the demand after a bruising week for the Prime Minister, which concluded with her being ‘sidelined’ by other EU leaders at a Brussels summit. It led Remain-supporting Conservatives to warn the country could be heading for a ‘dirty’ Brexit, with no ‘divorce’ deal being reached before the end of formal talks in 2019. – Mail on Sunday Cherish your chancellor, PM. He has no knife – Adam Boulton for the Sunday Times (£) SNP calls for Theresa May to treat Scotland as ‘equal partner’ in Brexit negotiations… The Scottish Government has demanded to be treated as an “equal partner” by Theresa May in the Brexit negotiations as the Prime Minister called for a “grown up” relationship with the devolved administrations. Mrs May will host the leaders of Scotland, Wales and Northern Ireland tomorrow to discuss the UK’s exit process from the European Union and her Government’s economic plans… Ahead of the talks, the lead Scottish minister involved in the process warned that the Holyrood administration is becoming increasingly concerned about the prospect of a “hard Brexit” and called for a new approach from the British Premier. – Sunday Express How Nordic nations can provide Brexit inspiration for Scotland – Sunday Herald …as Plaid Cymru’s Leanne Wood accuses Theresa May of being part of Brexit thuggery Leanne Wood, the leader of Plaid Cymru, yesterday accused Theresa May’s government of fanning the flames of xenophobia and called for a “soft Brexit” that could mean continued free movement of people. In a speech at her party’s conference, Wood condemned the “toxic” and “thuggish” debate on immigration, which she said had fuelled a rise in hate crime. She demanded a Brexit deal that would retain membership of the single market, with Wales given a seat at the negotiating table and additional powers. – Sunday Times (£) Wales must stay in the EU single market after Brexit insists Leanne Wood – The Independent Leanne Wood says it’s vital we rebuild Wales after Brexit vote – BBC Britain must not abandon its role fighting terrorism in Europe, says Nick Clegg Theresa May will be seen as “soft on terrorism and organised crime” unless she signs the UK up to continued membership of Europol, the EU’s law enforcement agency, warns the former deputy prime minister Nick Clegg…May has raised the issue with international leaders in recent weeks, expressing her preference for remaining in Europol but also her fears that her party will see such a move as an early Brexit capitulation. In a speech in April, before the Brexit vote, she cited crime-fighting and sharing intelligence at EU level as a major reason for staying in the EU. – The Observer Labour scrutiny of Brexit has begun – and security is a critical first test – Labour List Jeremy Warner: Calm down. We don’t need a negotiating stance on Brexit There is something faintly surreal about the increasingly hysterical nature of the debate over what form of exit Britain might take… It’s time for everyone to calm down. There’s a long way to go, and there can really only be one objective for Britain – securing the best possible ongoing economic and diplomatic relationship. The rest is just noise. – Jeremy Warner in the Sunday Telegraph Daniel Johnson: Germans gloat over Brexit pains to distract from trouble at home After the 2017 election, Mrs Merkel will be fighting for survival. This means that her treatment of her British counterpart cannot be other than chilly: she has to paint Brexit in the darkest possible colours. Indeed, she is engaged in her own “project fear”, just in case Germans might harbour a sneaking admiration for the British. As for Mrs May — it suits her, too, that a “soft” Brexit is not on offer. Her tough line has been vindicated by her hostile reception in Brussels. She might even echo another prime minister who got the same treatment: there is no alternative. – Daniel Johnson in the Sunday Times (£) Janet Daley: Politicians must grasp the difference between free market and corporate stitch-up – or face popular rage Surely suspicion should have been raised when it became apparent that the most fervent opposition to Leave, and the most militant opposition to the referendum result, came from an unlikely alliance between political Left-liberals and global corporate interests… The EU is a club that celebrates the power of Big Leagues: Big Business, Big Government, and Big Bureaucracy. To a much lesser extent, it grants power to Big Labour in the form of the most well-connected trade unions. – Janet Daley in the Sunday Telegraph Chris Grayling MP: Brexit makes it all the more important to be better connected with the world In June, the British people didn’t just vote to leave the European Union. They voted for a stronger, more confident, more ambitious Britain that can compete with the very best in the world. That’s the sort of Britain I believe in. And it’s our job in the Government to make it happen. In our new position, Britain has to reach out to the global community, to build better connections with places such as Asia, South America and Africa. That’s why expanding one of the South East’s major airports is right at the top of our priority list. – Transport Secretary Chris Grayling in the Sun on Sunday Brexit comment in brief It is essential that the face of Britain that Mrs May presents to the EU and the rest of the world is an open, generous and economically confident one – Sunday Times (£) editorial Call a General Election now, Prime Minister, and bury for all time the referendum deniers in your own party – Tony Parsons in the Sun on Sunday The post-referendum political debate has been besmirched by racism, bigotry and hatred – today’s understated Observer editorial Article 50: To me it is no part of the Courts’ remit to tell Parliament what we do and do not have to vote on and debate – John Redwood’s blog Central Europe does not need saving – Jakub Eberle and Benjamin Tallis for Politico Rocked by Brexit vote, Gibraltar lays plans for new kind of EU relationship – John Henley in The Observer Brexit news in brief Last-gasp Stormont bid to block Brexit set to fail – Belfast News Letter Swiss battle offers clues for Brexit – FT (£) The betrayal of Boris: Tim Shipman’s account of how and why Michael Gove dumped Boris Johnson to run for the Tory leadership himself – Sunday Times (£) How others cashed in on Farage’s premature referendum night concession – Sunday Times (£) Queen facing million-pound black hole in estate finances if CAP funding is not replaced after Brexit – Sunday Telegraph Ex-Smiths frontman Morrissey says Brexit result was ‘magnificent’ – NME And finally… How David Cameron’s spin doctor accidentally revealed his romance with leading Remain campaigner As David Cameron’s chief spin doctor, Sir Craig Oliver made a point of promoting the use of social media during their failed campaign to persuade the electorate to vote to keep Britain in the European Union. But a new book reveals that an unfortunate smartphone blunder led Oliver’s colleagues to realise that he got more than a knighthood for his troubles — he also found love during the “remain” campaign. When Oliver’s new squeeze, Lucy Thomas, deputy director of the Britain Stronger in Europe campaign, burst into a meeting looking flustered, the communications chief sent her a text saying: “You look shattered xxx.” However, as soon as he pressed send, the phones of fellow campaign chiefs sitting around the table began to vibrate. Oliver had inadvertently sent his romantic missive, complete with three little kisses, to the campaign’s WhatsApp group. – Sunday Times (£)