Angela Merkel suggests she is willing to compromise on free movement in the wake of Brexit… Angela Merkel has for the first time signalled that she is willing to compromise on the issue of freedom of movement in the wake of Britain’s Brexit vote. In comments seen as a significant shift, the German Chancellor suggested that the European Union needs to “discuss further” the rules around freedom of movement. It suggests for the first time that Britain may be able to gain full control of its borders while still retaining access to the single market, something that EU leaders including Jean-Claude Juncker have previously said would be impossible. – Daily Telegraph …as Boris Johnson says it is ‘bollocks’ to say freedom of movement is a fundamental right… Speaking to [Czech newspaper] Hospodářské noviny, Mr Johnson said: “It is stupid to say that freedom of movement is a fundamental right. It’s something that has been acquired by a series of decisions by the courts. And everyone now has in his head that every human being has a fundamental, God-given right to go and move wherever he wants. But it is not. It was never a founding principle of the European Union. It’s a complete myth. Total myth. The idea that freedom of movement is a fundamental right of the EU is just bollocks.” – PoliticsHome Dutch finance minister accuses Boris Johnson of “intellectually impossible” Brexit vision – BBC Italian economic development minister says “access to the single market but no free circulation of people” doesn’t “make any sense” – Bloomberg …and signals that the UK will be leaving the EU customs union… Foreign secretary Boris Johnson has confirmed the UK will probably have to leave the Customs Union post-Brexit in an interview published today… Speaking with Czech publication Hospodarske Noviny, Johnson said that the UK would likely maintain some sort of relationship with the Single Market, similar to the way the US has already achieved as a third party, but added: “We’ll probably have to leave the Customs Union…I believe it can be done while maintaining free trade and growing European economy.” – City A.M. Downing Street plays down Boris Johnson’s remarks on Britain ‘probably’ leaving customs union after Brexit – The Independent …amidst fears the EU may serve the UK with a £60bn bill for leaving Senior European and British negotiators worry that Theresa May will be unable to enter Brexit talks because the EU will set impossible demands, including the condition that Britain agrees to pay £60 billion to Brussels… As well as covering all of its EU budget contributions up until 2021, Britain will be asked to pay its share of financial liabilities, which totalled €226 billion last year, including a €56 billion liability to fund eurocrat pensions, adding up to a total as high as €70 billion (£60 billion). Diplomats are especially concerned that there will be a public outcry if Britain is asked to pay its full share, up to €9 billion, of generous 70 per cent of final salary pensions for retired EU officials up until 2045 and beyond. – The Times (£) Theresa May fury at Deloitte and BBC over “leaked memo” story Theresa May has launched direct attacks on one of the world’s biggest consultancy firms and the BBC after a leaked memo claimed the Government could not cope with Brexit… The report in The Times newspaper, which claimed that the [Deloitte] memo had been “prepared for the Cabinet Office”, was at the top of the news bulletins on BBC Radio 4’s Today programme yesterday morning. However, the Prime Minister’s official spokeswoman said the memo was “unsolicited” and that the consultant who wrote it had not been working for the Government. She accused Deloitte of “touting for business” and criticised both The Times and the BBC for the way in which they reported the story… After a day of criticism Deloitte released a statement admitting that the memo was “not commissioned by the Cabinet Office” and was “conducted without access to No 10 or input from other government departments”. – Daily Telegraph The Times follows up its Deloitte memo with Brexit scaremongering from the Institute for Government Few do post-truth politics better than the Beeb – Douglas Carswell’s blog Government drafting three-line Article 50 bill to pass through Parliament… The government has prepared a short three-line bill to begin the Brexit process – so Theresa May can meet her March deadline, it is understood. Sources say they believe the legislation is so tightly drawn it will be difficult for critical MPs to amend. Ministers have drawn up the legislation in case they lose their appeal to the Supreme Court – which would force them to consult Parliament… The hope would be to push the bill through the Commons in two weeks. It would then go to the House of Lords where it is understood the government hopes peers would back down. They believe peers would not dare defy MPs – if the Commons had approved the legislation. – BBC …as a Supreme Court judge is criticised after warning Theresa May could be forced to replace all EU laws before triggering Brexit Baroness Hale suggested that a simple Act of Parliament may not be enough to trigger Article 50 and instead claimed that Mrs May could be forced to repeal and then replace all current EU legislation to protect the rights of British people… Lady Hale is one of 11 judges who will rule on whether Theresa May must seek the approval of Parliament before triggering Article 50 to leave the EU after the High Court ruled against the Government… The scenario was not mentioned in the original High Court ruling and some MPs have warned that her speech means Baroness Hale has gone further than her legal colleagues have before, which is inappropriate ahead of the hearing. – Daily Telegraph UK’s Supreme Court faces Brexit limelight – BBC Court battle over Brexit could cause ‘constitutional crisis,’ Iain Duncan Smith warns – The Independent John McDonnell says UK must be ‘positive’ about Brexit and pledges Labour will not block Article 50 Labour will not seek to “block or delay” the triggering of Brexit and will oppose any moves to hold a second referendum, John McDonnell has said. The shadow chancellor also said on Monday that it was time people were “more positive about Brexit” given the referendum result… “Labour accepts the referendum result as the voice of the majority and we must embrace the enormous opportunities to reshape our country that Brexit has opened for us,” he said… ”This means we must not try to re-fight the referendum or push for a second vote and if Article 50 needs to be triggered in parliament Labour will not seek to block or delay it.” – Huffington Post Labour will use “moral pressure” to get a better deal on Brexit – New Statesman’s Staggers blog Labour branded ‘out of touch’ after admitting it has no Shadow Minister for Immigration – The Sun What is Labour’s official Brexit policy? – George Eaton for the New Statesman’s Staggers blog Hard or soft? Labour doesn’t care, as long as it’s a McDonnell Brexit – Tom Harris for the Daily Telegraph (£) EU free movement has not worked for millions of Britons, says Corbynista Shadow Cabinet member Clive Lewis “We have to acknowledge that free movement of labour hasn’t worked for a lot of people. It hasn’t worked for many of the people in this country, where they’ve been undercut, who feel insecure, who feel they’re not getting any of the benefits that immigration has clearly had in our economy,” he said. – Clive Lewis MP interviewed by The Guardian Labour MP Chuka Umunna accused of ‘elongated primal scream’ over Brexit – Daily Express SNP plan for Scotland to join EEA after Brexit “impossible” SNP proposals for Scotland only to join the European Economic Area would create “the most complex arrangement imaginable” by erecting trade barriers with both England and the EU, one of the country’s most eminent constitutional experts has warned. Professor Michael Keating, who is director of Edinburgh University’s Centre on Constitutional Change, said he thought it was impossible to for Scotland to join the EEA while the rest of the UK remains outside because it is not an independent state. Even if such an arrangement could be negotiated, he told the Telegraph that it would create even more problems than a hard Brexit by introducing an economic border with England. – Daily Telegraph Google’s plans to build huge new London HQ for 7,000 employees hailed as ‘major vote of confidence’ for Brexit Britain Google has announced it is going ahead with its plan to build a headquarters in London’s King’s Cross, in a move seen as a major “vote of confidence” for UK’s technology sector in the wake of Britain’s vote to leave the EU… Google currently employes around 4,000 people in the UK, a figure that could now nearly double to 7,000. Speaking to the BBC, [Google chief executive Sundar] Pichai said: “The innovation we see here, the talent we have available here and now on the cutting edge of technology we are able to be here makes it an incredible place for us to invest.” – The Independent Inflation falls despite the pound’s post-referendum crash Despite predictions it would pick up after the decision to Brexit was announced, UK inflation has slipped, according to official figures. Economists had expected inflation to rise after Sterling’s post-Brexit crash. But the Office for National Statistics (ONS) said the Consumer Price Index (CPI) measure of inflation was 0.9% in October, down from 1% in September. The ONS said there was ‘no clear evidence’ that the plunge in the value of pound since the EU referendum result was bumping up shop prices. – Metro Ross Clark: Falling inflation marks another nail in the coffin for Project Fear So, another post-Brexit horror story fails to materialise. When the stock market failed to crash and the economy failed to slump, the continuing Remain campaign hit on another fear: inflation. When the CPI rose in September to one per cent, it was predicted to be merely the beginning of a trend which would see prices surge as a result of the fall in the pound. Instead, the CPI fell back slightly last month to 0.9 per cent. – Ross Clark for The Spectator’s Coffee House blog Stephen Kinnock: The people have spoken – threats to block Article 50 are just toxic Britain voted leave. Yes it was close, but it was clear. And so to those calling for the rejection of article 50 unless the government offers a referendum on the exit deal, I say: please practice what you would have preached. We are democrats. The people have spoken, and they’ve said we are leaving the European Union. That’s why we must be engaged, fighting for a balanced Brexit – a Brexit in the national interest… On Brexit we should be holding the government to account, not to ransom. – Stephen Kinnock MP for LabourList Brexit comment in brief As a businessman, Donald Trump knows that success requires compromise: Brexiteers should take note – Guy Hands for City A.M. How Trump will impact the European Union – Pieter Cleppe for Reaction Brexit means…a lot of complex trade decisions – Buttonwood in The Economist More desperate attempts to derail our exit from EU – Daily Express editorial Brexit news in brief Up to £15bn to be spent on ‘future-proofing’ economy against Brexit – Sky News Brexit should bring devolution of more powers, council leaders say – Belfast Telegraph Nigel Farage hints he might rejoin the Conservative party in a bid to boost the Government’s communication channels with Donald Trump – Daily Express Northern Ireland’s First Minister Arlene Foster agrees to ramp up Brexit talks following meeting with Taoiseach – Irish News Barroso on Brexit: Europe could have done more to stop it – Politico Remainer MP Grant Shapps says UK has ‘bright future’ after Brexit and insists Article 50 will be passed – Daily Express EasyJet powers ahead with £10m Brexit plan to set up a base on the European mainland but will keep Luton HQ – Daily Mail Premier Foods shrugs off Brexit price pressures – Daily Telegraph London office construction up, despite concerns about future demand – Daily Telegraph London property prices show ‘remarkable fortitude’ in face of Brexit – International Business Times