European Council

(Limited Text - Ministerial Extracts only)

Monday 18th December 2017 Commons Chamber

[The Prime Minister (Mrs Theresa May)]

With permission, Mr Speaker, I will make a statement on last week’s European Council.

Before turning to the progress on our negotiations to leave the European Union, let me briefly cover the discussions on Russia, Jerusalem, migration and education. In each case, the UK made a substantive contribution, both as a current member of the EU and in the spirit of the new deep and special partnership we want to build with our European neighbours.

Russia’s illegal annexation of Crimea was the first time since the second world war that one sovereign nation has forcibly taken territory from another in Europe. Since then, human rights have worsened. Russia has fomented conflict in the Donbass and the peace process in Ukraine has stalled. As I said at the Lord Mayor’s banquet, the UK will do what is necessary to protect ourselves and to work with our allies to do likewise, both now and after we have left the EU. We were at the forefront of the original call for EU sanctions and, at this Council, we agreed to extend those sanctions for a further six months.

On Jerusalem, I made it clear that we disagree with the United States’ decision to move its embassy and recognise Jerusalem as the Israeli capital before a final status agreement. Like our EU partners, we will not be following suit, but it is vital that we continue to work with the United States to encourage it to bring forward proposals that will re-energise the peace process. That must be based around support for a two-state solution and an acknowledgement that the final status of Jerusalem must be subject to negotiations between the Israelis and Palestinians.

On migration, when we leave the European Union, we will be taking back control of our own borders and laws, so we will be free to decide our own approach, independently of the EU. But as part of the new partnership we want to build, I made it clear at this Council that we will continue to play our full part in working with the EU on this shared challenge. We will retain our maritime presence in the Mediterranean for as long as necessary, we will work with Libyan law enforcement to enhance its capability to tackle people-smuggling networks, and we will continue to address the root causes of the problem by investing for the long term in education, jobs and services in countries of origin and transit.

On education, our world-leading universities remain a highly attractive destination for students from across the EU, while UK students also benefit from studying overseas. UK and EU universities will still want to work together after we leave the EU and, indeed, to co-operate with other universities around the world. We will discuss how to achieve that in the long term as part of the negotiations on our future deep and special partnership, but in the meantime I was pleased to confirm at the Council that UK students will continue to be able to participate in the Erasmus student exchange programme for at least another three years, until the end of this budget period.

Turning to Brexit, the European Council formally agreed on Friday that sufficient progress has been made to move on to the second stage of the negotiations. This is an important step on the road to delivering the smooth and orderly Brexit that people voted for in June last year. I want to thank Jean-Claude Juncker for his personal efforts, and Donald Tusk and my fellow leaders for the constructive way they have approached this process.

With Friday’s Council, we have now achieved my first priority of a reciprocal agreement on citizens’ rights. EU citizens living in the UK will have their rights enshrined in UK law and enforced by British courts, and UK citizens living in the EU will also have their rights protected. We needed both and that is what we have got, providing vital reassurance to all those citizens and their families in the run-up to Christmas.

On the financial settlement, I set out the principles for the House last week and the negotiations that have brought this settlement down by a substantial amount. Based on reasonable assumptions, the settlement is estimated to stand at between £35 billion and £39 billion in current terms. This is the equivalent of about four years of our current budget contribution, around two of which we expect will be covered by the implementation period, and it is far removed from some of the figures that had been bandied around.

On Northern Ireland, as I set out in detail for the House last week, we have committed to maintain the common travel area with Ireland; to uphold the Belfast agreement in full; and to avoid a hard border between Northern Ireland and Ireland, while upholding the constitutional and economic integrity of the whole United Kingdom. We will work closer than ever with all Northern Irish parties and the Irish Government as we now enter the second phase of the negotiations.

The guidelines published by President Tusk on Friday point to the shared desire of the EU and the UK to make rapid progress on an implementation period, with formal talks beginning very soon. This will help give certainty to employers and families that we are going to deliver a smooth Brexit. As I proposed in Florence, during this strictly time-limited implementation period, which we will now begin to negotiate, we would not be in the single market or the customs union as we will have left the European Union. But we would propose that our access to one another’s markets would continue as now, while we prepare and implement the new processes and new systems that will underpin our future partnership. During this period we intend to register new arrivals from the EU as preparation for our future immigration system. We will prepare for our future independent trade policy by negotiating, and where possible signing, trade deals with third countries which could come into force after the conclusion of the implementation period.

Finally, the Council also confirmed on Friday that discussions will now begin on trade and the future security partnership. I set out the framework for our approach to these discussions in my speeches at Lancaster House and in Florence. We will now work with our European partners with ambition and creativity to develop the details of a partnership that I firmly believe will be in the best interests of both the UK and the EU.

Since my Lancaster House speech in January, we have triggered article 50 and begun and closed negotiations on the first phase. We have done what many said could not be done, demonstrating what can be achieved with commitment and perseverance on both sides. I will not be derailed from delivering the democratic will of the British people. We are well on our way to delivering a smooth and orderly Brexit. That is good news for those who voted leave, who were worried the negotiations were so complicated it was never going to happen, and it is good news for those who voted remain, who were worried that we might leave without being able to reach an agreement. We will now move on with building a bold new economic relationship, which together with the new trade deals we strike across the world can support generations of new jobs for our people, open up new markets for our exporters, and drive new growth for our economy. We will build a new security relationship that promotes our values in the world and keeps our families safe from threats that increasingly do not recognise geographical boundaries. We will bring our country together: stronger, fairer, and once again back in control of our borders, our money and our laws.

Finally, Mr Speaker, let me say this. We are dealing with questions of great significance to our country’s future, so it is natural that there are many strongly held views on all sides of this Chamber. It is right and proper that we should debate them, and do so with all the passion and conviction that makes our democracy what it is. But there can never be a place for the threats of violence and intimidation against some Members that we have seen in recent days. Our politics must be better than that. On that note, I commend this statement to the House.

[Jeremy Corbyn (Islington North) (Lab)]

I thank the Prime Minister for an advance copy of her statement.

On Jerusalem, I also condemn the actions of the United States President. I welcome the Prime Minister’s commitment to maintaining a maritime presence in the Mediterranean, but as a humanitarian mission to save lives.

As I said last week in response to the Prime Minister’s previous statement, we welcome progress to the second phase of negotiations but that should not hide the fact that this agreement comes two months later than planned and many of the key aspects of phase one are still unclear. These negotiations are vital for people’s jobs and for the economy; our future prosperity depends on getting this right.

The agreement reached on phase one was clearly cobbled together at the eleventh hour after the Democratic Unionist party vetoed the first attempt, as is evident in the vagueness of the final text, which underlines the sharp divisions in the Cabinet. As we head into phase two, the truth is that the Government must change track. We cannot afford to mishandle the second stage. The Prime Minister must now sort out the contradictions. We were told last week that the Prime Minister’s humiliating loss on giving Parliament a final say on a Brexit deal made her weak, and the Daily Mail, which previously branded the judiciary “enemies of the people”, is now whipping up hatred against Back-Bench rebel MPs. Threats and intimidation have no place in our politics, and the truth of it is that it is division and in-fighting in her own Cabinet and their reliance on the DUP that makes them weak. So will the Prime Minister welcome Parliament’s vote to take back control?

We have already seen Ministers in the Prime Minister’s Cabinet, such as the Brexit Secretary and the Secretary of State for Environment, Food and Rural Affairs, give the impression that the agreement can be changed or ignored—that it effectively does not amount to a hill of beans. It is not very reassuring that this is the end product of eight months of negotiation. Will she set out which parts of the financial settlement agreed between the UK and the EU will be paid if a final deal between the EU and the UK cannot be struck? Given the delays to the phase one deal, can the Prime Minister now see that cementing in statute a time and date on which Britain will leave the European Union could hinder negotiations?

I am glad that the Prime Minister now seems determined to follow Labour’s call for a transition period to create stability—[Interruption.] In case Government Members do not want to hear it, Mr Speaker, I will repeat the sentence. I am glad that the Prime Minister now seems determined to follow Labour’s call for a transition period to create stability as we leave the European Union. It is necessary that we remain in the single market and customs union for a limited period, allowing a smooth transition for British business. However, there was more Government confusion on this over the weekend. Will the Prime Minister clarify whether we will remain subject to the rules of the single market and the customs union during this transition period? Does she envisage that the UK will also remain a member of the common agricultural policy and common fisheries policy, and can she clarify whether it will be possible under the phase one agreement to sign trade deals during the transition period?

There were also worrying reports over the weekend about what some senior Cabinet Ministers will demand from the Prime Minister to support a phase one deal. These demands were reported to include that Britain should leave the working time directive. Can the Prime Minister state now, categorically, that she will face down this push from some in her Cabinet and that Britain will maintain the standards of the working time directive both during a transition period and beyond? Will she also guarantee that the Government will not seek to use Brexit to water down any other working or social rights in this country? Will she commit to maintaining access for UK students to the Erasmus programme beyond the current budget period?

These issues are important to people’s jobs and living standards. It is becoming clear that many on the Government Benches want to use Brexit to rip up rights at work, environmental standards and consumer protections, and to deregulate our economy. For many of them, Brexit is a chance to make Britain a tax haven for the super-rich. Let me be clear: Labour will do everything in our power to stop that.

The choice is becoming clear: a Tory Government who will use Brexit to protect the very richest, slashing corporation tax and the regulations that protect working people, or a Labour vision that would protect jobs, the economy and investment by building a relationship with our closest trade partners, and not starting a race to the bottom in which people’s jobs and living standards will suffer.

[The Prime Minister]

First, I welcome the fact that the Leader of the Opposition has said that threats and intimidation should not form part of our political life. I agree with him, but what he said will seem a bit rich to those of my colleagues who were candidates in the general election, and who suffered from the Labour party.

The right hon. Gentleman asked a number of questions about the date of our leaving and phase 1. He said that the phase 1 agreement was vague. In fact, it is the result of significant work over a number of months. If the right hon. Gentleman looks at it carefully, he will see that it is detailed in relation to citizens’ rights. It gives reassurances to EU citizens here in the United Kingdom and UK citizens living in the EU 27 that they can carry on living their lives as they have done, and that their life choices will be respected.

The right hon. Gentleman claimed that the transition period—the implementation period—was somehow a Labour idea. He should look at the Lancaster House speech, in which I was very clear about the need for a smooth departure from the European Union. The financial settlement that we agreed in phase 1 is in the context of agreeing the final deal and reaching the final agreement. He talked about dates for our leaving. I note that he said that we should have triggered article 50 the day after the referendum. That would have meant that there was no time to prepare our negotiating position and we would be leaving the EU in six months without having done the proper work to make sure that there was that smooth and orderly progression, and that we did not disrupt our economy in the ways that the right hon. Gentleman has talked about.

The right hon. Gentleman asked whether trade deals could be signed. I referred to that in my statement. He asked about the transition period, and about the common fisheries policy and the common agricultural policy. We will be leaving the European Union on 29 March 2019, and we will therefore be leaving the common fisheries policy and the common agricultural policy on that date. The relationship that we have with the European Union on both those issues continuing through the implementation period will be part of the negotiation of that period, and work will start very soon.

Then, of course, the right hon. Gentleman asked about workers’ rights. Again, I set out in my Lancaster House speech, and have confirmed on a number of occasions since, that this Government will not only maintain but enhance workers’ rights. If the right hon. Gentleman is so worried about workers’ rights, why did the Labour party vote against the very Bill that brings workers’ rights in the EU into UK law?

[Mr Iain Duncan Smith (Chingford and Woodford Green) (Con)]

I agree with my right hon. Friend that attacks on MPs’ family members, particularly in vulnerable conditions, should be absolutely outlawed from the very beginning.

May I ask my right hon. Friend whether she has read Mr Barnier’s statement—made in the last couple of days—in which he set out the EU’s position in the run-up to the next two phases of discussion? Can she confirm that the Government have neither discussed that nor agreed it, and that therefore it is not Government policy?

[The Prime Minister]

I had noticed Michel Barnier’s comments, particularly in relation to the negotiations on the trade deal. We will start the negotiations on that as a result of the decision taken last Friday by the European Union Council. I can tell my right hon. Friend that one of the senior members of the negotiating team has today made it clear that the United Kingdom can indeed have its own bespoke agreement for a future trade relationship with the European Union. Indeed, that point was also made by the Prime Minister of Italy, Paolo Gentiloni, in an article he wrote in the Financial Times last week. If anybody cares to think about it, every trade agreement is a bespoke agreement between the parties concerned—they have similar elements, but are specific to the various countries concerned. That is certainly what we will be looking for in our negotiations with the EU.

[Ian Blackford (Ross, Skye and Lochaber) (SNP)]

I thank the Prime Minister for advance sight of today’s statement.

Scottish National party Members welcome the progress to phase 2 of the negotiations, as agreed by all EU member states, but Council President Donald Tusk was not kidding when he commented that phase 2 will be “dramatically difficult”. It is imperative that the devolved Administrations are included in phase 2 negotiations, and I call on the Prime Minister to agree to that today.

Much of the conclusion from last week’s summit should be welcomed across the House. We on these Benches especially welcome the EU’s reiteration of its firm commitment to a two-state solution in the Israeli-Palestine conflict. We should all unreservedly condemn Donald Trump for his recent actions.

I must give special attention to the agreement on the social dimension, including commitments by member states to implement the European pillar of social rights and to follow up on the priorities of the EU action plan to tackle the gender pay gap.

Decisions on education and culture are also extremely welcome. An extended and more inclusive Erasmus+ programme, the creation of a European student card and stronger partnerships between higher education institutions across Europe, allowing students to obtain a degree by combining studies in several EU countries, are great moves forward for European collaboration. These decisions will not only bring much social progress to national politics across all member states but, more importantly, provide enormous opportunities for future generations. Erasmus is one of the EU’s biggest success stories, and it has benefited hundreds of thousands of young Scots. Will the Prime Minister take this opportunity to reassure young people on Erasmus now, and those aspiring to take part in the programme, that the UK will maintain participation in it?

[The Prime Minister]

As the right hon. Gentleman knows, we have been in discussions with the devolved Administrations through the process of phase 1. We will continue to engage with them as we move into the second phase of negotiations. My right hon. Friend the First Secretary meets the Scottish and Welsh Governments regularly to discuss issues of concern to them and how the negotiations are proceeding. Indeed, the last meeting of the Joint Ministerial Council was held on 12 December.

As I have said, we have committed to the Erasmus programme for the period of the current budget plan. Erasmus is exactly the sort of programme that we will be discussing in the second phase of these talks.

[Anna Soubry (Broxtowe) (Con)]

I commend the Prime Minister for her success in the negotiations and the statement. I remind the Leader of the Opposition that the merits of a transition period were first advanced on this side of the House, notably by the Chancellor of the Exchequer. On that note, as a former Business Minister, may I say to the Prime Minister that what business really wants is certainty? How soon does she think that we will be able to announce that the transition period has been agreed so that we can give that certainty to business?

[The Prime Minister]

My right hon. Friend makes an important point from the point of view of business. Significantly, it was accepted at the December Council not only that there should be such an implementation period, which in fact reflects the guidelines set out by the EU Council last April, but that we would start negotiating that very soon. We are looking to have those negotiations concluded in the first quarter of next year.

[Hilary Benn (Leeds Central) (Lab)]

On 10 December, the Brexit Secretary described the phase 1 joint agreement as

“more a statement of intent than it was a legally enforceable thing.”

However, last Friday’s European Council guidelines state:

“negotiations in the second phase can only progress as long as all commitments undertaken during the first phase are respected in full and translated faithfully into legal terms as quickly as possible.”

Can the Prime Minister therefore confirm that all the commitments she made in the phase 1 joint agreement, including in respect of the border in Northern Ireland, will be written into UK law?

[The Prime Minister]

As the right hon. Gentleman knows, there will now be a process of completing some of the details behind the withdrawal agreement such that the withdrawal agreement can then be put to this House, to this Parliament and to the European Parliament. We have always been clear that there will be a meaningful vote for this House. Subsequently, as we have stated to the House, we will have the EU withdrawal agreement and implementation Bill, which will put the various provisions of the withdrawal agreement legally into UK law. That was a key element in relation to citizens’ rights in the phase 1 negotiations.

[Sir William Cash (Stone) (Con)]

May I urge my right hon. Friend to give equal consideration, in the Cabinet and elsewhere, not only to the vital issues of our trading relationships and regulatory divergence, but to the perpetual, ever-escalating, undemocratic centralisation of the EU itself, which remoaners, reversers, status quo-ites and the Opposition seem incapable of grasping, and which absolutely proves how right the voters were in June last year in voting to escape from the European Union?

[The Prime Minister]

I can assure my hon. Friend that in the negotiations that we hold with the European Union, we will ensure that the British national interest is represented and that we come away with a deal that is in the interests of the UK. I believe that that will also be in the interests of the EU. How the European Union develops once we have left is, of course, a matter for the EU27. As he suggests, a number of recent speeches have suggested an increased centralisation of the European Union, but that will be a matter for the 27, not for us.

[Sir Vince Cable (Twickenham) (LD)]

As the Government embark on far-reaching trade negotiations with the European Union and beyond, will the Prime Minister explain who will provide independent arbitration in legal disputes, given that the Government have rejected the jurisdiction of the European Court of Justice and that her friend, President Trump, is rejecting the authority of the World Trade Organisation and making its dispute panels unworkable? Is this not a recipe for anarchy in international trade?

[The Prime Minister]

As the right hon. Gentleman will know, dispute resolution is part of any trade agreement negotiations, and that will be exactly the same with all the trade agreements that we will negotiate now.

[John Redwood (Wokingham) (Con)]

Will the Prime Minister confirm that no binding offer about the money will be made until there is a general agreement that Parliament accepts, because I do not see how else we can proceed?

[The Prime Minister]

The joint progress report, which was published by the UK and the European Union prior to the December Council, made it absolutely clear that the settlement within it was set out in the context of going forward and having agreement on the future relationship.

[Yvette Cooper (Normanton, Pontefract and Castleford) (Lab)]

Does the Prime Minister now agree that the meaningful vote to which she referred should take place on a statute, as set out in the terms of amendment 7 to the European Union (Withdrawal) Bill, before any withdrawal terms can be implemented? Does she also agree that those who voted for amendment 7 did so in good faith to ensure that power would not be too heavily concentrated in the hands of the Executive, and that it was completely wrong to do what the Daily Mail suggested and accuse them of treachery?

[The Prime Minister]

If we look at our debates on the European Union (Withdrawal) Bill, and indeed on other matters in this House relating to Brexit, such as article 50, it is clear that the will of Parliament overall has been to deliver on the vote of the British people. We were always clear with the House that there would be a meaningful vote on the question of the withdrawal agreement—[Interruption.] Yes, we were always clear that there would be a meaningful vote on that but, as I have just indicated to the right hon. Member for Leeds Central (Hilary Benn), there will subsequently be the process of this Parliament agreeing the withdrawal agreement and implementation Bill. It will be that which will bring the withdrawal agreement into UK law.

[Mr Owen Paterson (North Shropshire) (Con)]

Further to the Prime Minister’s reply to the right hon. Member for Leeds Central (Hilary Benn) on the guidelines issued by the European Council on 15 December, will she confirm categorically that nothing is agreed until everything is agreed, and that it will be the final settlement, combined with phase 1, that she will bring forward as legislation for us to approve in this House?

--- Later in debate ---

[The Prime Minister]

The fact that nothing is agreed until everything is agreed is actually in the joint progress report that was published by the UK and the European Union. There will be various stages at which this Parliament will be able to vote on matters relating to our leaving the EU. I just referred to the withdrawal agreement and implementation Bill, and there will be other pieces of legislation as well. Separate from the formal withdrawal agreement that will bring those matters into UK law, we will of course be able legally to sign our new trade agreement with the EU once we leave the EU.

[Kate Hoey (Vauxhall) (Lab)]

If we will no longer be in the internal market and the customs union during the implementation period, why can we not negotiate, sign and implement new trade deals before the end of that period?

[The Prime Minister]

The purpose of the implementation period is to ensure that businesses and individuals do not have to make two sets of changes because of a new relationship that is put in place as part of our future partnership with the EU. That is why, as we look at the implementation period, I and the Government are clear that although we will be formally out of the customs union and the single market, we expect to be able to operate on the same terms as we currently do. That is what limits the ability to implement new trade deals elsewhere.

[Vicky Ford (Chelmsford) (Con)]

I congratulate the Prime Minister and the entire negotiating team on the progress made to date. However, given that leaving the EU without a deep and special relationship on trade and security would also bring risk, does she agree that we should be using all our political energy in the months ahead to find that new relationship and that we should not get distracted by other squabbles?

[The Prime Minister]

My hon. Friend is absolutely right. The Government’s focus will clearly be on ensuring that we can negotiate that deep and special partnership for the future. That is not just in our interests; it is in the interests of the EU and the EU27 as well. That is why I am optimistic and ambitious about the trade deal that we can achieve.

[Chuka Umunna (Streatham) (Lab)]

Last year, the Prime Minister wrote to me giving the same general assurance on workers’ rights that she just gave to the Leader of the Opposition. She did not actually answer his specific question today, however, so I ask her again: given that her Cabinet colleagues are now agitating for some of those rights to be done away with, will she guarantee that none of the working time regulations—importantly, the 48-hour working week—will be done away with by her Government after we leave the European Union?

[The Prime Minister]

We are bringing those rights into UK law though the European Union (Withdrawal) Bill. I have said that we will maintain, and indeed enhance, workers’ rights.

[Mr Jacob Rees-Mogg (North East Somerset) (Con)]

Will my right hon. Friend clearly reject the negotiating mandate handed out by the European Council, paragraph 1 of which undermines the principle of nothing being agreed until everything has been agreed, and paragraph 4 of which would make the United Kingdom in the transition phase no more than a vassal state, a colony, a serf of the European Union—[Interruption.]

[Mr Rees-Mogg]

I urge my right hon. Friend to model herself on her predecessor, the late noble Baroness Thatcher, and to show real mettle and steel in rejecting the EU’s rather hostile negotiating terms.

[The Prime Minister]

The negotiation is between two parties. We will be very clear about the future partnership we want to have with the European Union on both trade and security matters, and I set out the framework for that in my Florence speech.

My hon. Friend has asked me before about the relationship between the UK and the European Union during the implementation period. As I have just indicated in response to the hon. Member for Vauxhall (Kate Hoey), the purpose of the implementation period is to ensure that businesses and individuals can continue to operate, and to be reassured of the basis on which they operate, while the necessary changes are put in place that will lead to the future trade agreement that we will have achieved.

I have also said before in this House, and in my Florence speech, that there may be elements of the arrangement that we will be able to bring forward. For example, if we are able to bring forward a dispute resolution mechanism during that period, we will look to do so.

[Mr Chris Leslie (Nottingham East) (Lab/Co-op)]

I urge the Prime Minister to reject the notion that we should get all the way to exit day and not have the full details of the future trade arrangement between the EU and the UK. If all we have is a sketch of the framework of a possible trade deal, it would not be acceptable to the public or to businesses. It is simply unacceptable to have something that looks like less than a half-baked arrangement.

[The Prime Minister]

We are working to ensure that we are very clear and have details of our future arrangement with the European Union at the point at which we leave.

[Several hon. Members rose—]

[Richard Drax (South Dorset) (Con)]

Mr Speaker, I am speechless.

Will my right hon. Friend the Prime Minister confirm to me and the country that, when we leave the EU in March 2019—yes, there will be an implementation period; I understand why—we will have left the EU in its entirety?

[The Prime Minister]

We will have left the European Union. We will have the implementation period, and I would expect us to be able to continue to trade with the European Union on the same basis as now in order to ensure that businesses and individuals have the reassurance of knowing where they stand and how they operate while the practical changes that will need to be made as we move to our future relationship, such as our new immigration rules, are put in place. We will be leaving the EU on 29 March 2019.

[Nigel Dodds (Belfast North) (DUP)]

The Prime Minister will have heard some confusing and conflicting statements from Opposition Members about the need for a second referendum and their desire to have one—some say one thing; others say another. Does the Prime Minister agree that a second referendum is the surest way of finding that the European Commission and the European Union make the hardest and most difficult deal possible for the United Kingdom? What people want is to get on with delivering on the first referendum.

[The Prime Minister]

I understand that, in the space of one day over the weekend, the shadow Home Secretary rejected a second referendum and the deputy leader of the Labour party said that a second referendum was still on the table. My right hon. Friend the Member for Belfast North (Nigel Dodds) is absolutely right about this particular issue. The best way to get the worst deal would be to suggest that we are going down the route of a second referendum, but it is more than that—I think it would actually be betraying the British people. This Parliament gave the British people a vote, and it is up to us to deliver on the result.

[Mr Peter Bone (Wellingborough) (Con)]

Will the Prime Minister give the British people a huge Christmas present by stating that, on 29 March 2019, we will leave the European Union, end the free movement of people and remove the jurisdiction of the European Court, and that the £39 billion we plan to give the European superstate to squander will be spent instead on the NHS, social care and maybe even cutting taxes?

[The Prime Minister]

We will be leaving the European Union on 29 March 2019. We will now be moving quickly to negotiate the details of the relationship during the implementation period which, as I have said, we expect to last for up to, or around, two years. The reason why we will have that implementation period, and why we would expect to continue to trade and operate with the EU on a similar basis to today, is to give businesses the certainty of knowing the basis on which they will be able to operate and so that they will not have to make two sets of changes to their arrangements, such as in relation to customs. There will only be one point at which businesses move to the new partnership. I think that that is a practical matter that most people will understand and appreciate.

[Stephen Doughty (Cardiff South and Penarth) (Lab/Co-op)]

The Prime Minister has admitted today that we are looking at a £40 billion bill for Brexit. The Chancellor is already spending billions on contingency preparations, and we have two Cabinet Ministers jetting around spending lots of taxpayers’ money. Has she seen the analysis today from the Financial Times showing that rather than getting the £350 million for the NHS that was promised on the red bus, there will be a cost of £350 million per year—[Hon. Members: “Per Week.”] That would be the cost to the British economy, as economic output is 0.9% down?

--- Later in debate ---

[The Prime Minister]

When we have left the European Union—I have set out the commitments that we have negotiated as far as the financial settlement is concerned in the negotiations in phase 1—we will no longer year in and year out be spending vast sums of money in the European Union and sending those vast sums to the European Union. That is in direct contrast to the Labour party, which would pay any price and carry on paying to the EU, year in and year out.

[Rachel Maclean (Redditch) (Con)]

I congratulate my right hon. Friend on all the hard work she has put in to get us to this point—I think it is fantastic. We know there is a lot of hard work ahead, but does she welcome this opportunity to focus on her priority agenda of social justice, including higher educational standards and housing for our country, now that we can see that Brexit is moving ahead?

[The Prime Minister]

I thank my hon. Friend for her comments. She is absolutely right. We have just heard a reference to sums of money being paid to the European Union. When we do leave the EU, the money that we will no longer be paying year in and year out to the EU will be available to us to spend on our priorities, such as housing, education and the NHS. I was clear at the EU Council about the importance of the university sector. We want to ensure that we continue to have good-quality higher education in this country.

[Joanna Cherry (Edinburgh South West) (SNP)]

Last week, the Spanish Prime Minister, Mr Rajoy, said that as well as having a veto over any future agreement between the EU and the UK over the issue of Gibraltar, he also wants one over the issue of Gibraltar for the transitional period. Will the right hon. Lady give a firm commitment to the people of Gibraltar that she will not countenance any agreement for the transitional period that will not preserve their existing rights and arrangements?

[The Prime Minister]

We have been very clear throughout, and indeed in the discussions and continued interaction that we have with the Government of Gibraltar, that we are seeking the best deal for Britain and that deal must work for Gibraltar as well. They will be part of the exit negotiations. They will be covered by our exit negotiations and we will fully involve them as we leave the EU.

[Robert Neill (Bromley and Chislehurst) (Con)]

I congratulate the Prime Minister on the very real success she achieved in Brussels last week and urge her to stick to the pragmatic approach to these negotiations that brought that success about. Let me follow up on the point just made. As well as committing firmly to Gibraltar being included in these arrangements, will she undertake that her Government will work to strengthen, to the maximum extent possible, the trading arrangements between Britain and Gibraltar, both in the implementation period and after we have left the EU?

[The Prime Minister]

Let me say to my hon. Friend, who has long championed the interests of Gibraltar in this House, that when we negotiate our exit from the EU, when we negotiate the trade deal that we will have, we will be considering Gibraltar as part of our negotiations. So they will be there. We will be discussing with them as we move through those negotiations to ensure that we get a deal that is right for not only the United Kingdom, but Gibraltar.

[Chris Bryant (Rhondda) (Lab)]

If I have this right, the agreement says that nothing has been agreed until everything has been agreed, so the agreement is not an agreement at all—it is just a kind of pending operation. May I ask the Prime Minister about Russia? She rightly said at the beginning that, “We were at the forefront of the original call for EU sanctions”. Britain has wanted to be tough in relation to Russia, and I praise her for that. But how are we going to do that in the future if we are no longer in the room?

[The Prime Minister]

It is perfectly possible for this country to maintain our position on Russia. I have set out the UK’s position on Russia—I did it in my speech at the Lord Mayor’s banquet. We will continue to work with our European colleagues on the approach that we take and we will continue to work through other international organisations, such as the United Nations, on these matters.

[Sir Desmond Swayne (New Forest West) (Con)]

How likely is it that the Prime Minister would ask the EU27 to extend the article 50 deadline?

[The Prime Minister]

Sorry—I did not hear the beginning of my right hon. Friend’s question.

[Sir Desmond Swayne]

How likely is it?

[The Prime Minister]

I think everybody is now looking very clearly at the timetable that has already been set. Donald Tusk, the President of the European Council, has expressed the view that we need to accelerate the progress because we need to get the agreement in place and the arrangements negotiated very speedily. We will be leaving on 29 March 2019.

[Angela Smith (Penistone and Stocksbridge) (Lab)]

Will the Prime Minister give a simple answer to a simple question? Will the working time directive be transposed and embedded into British law—yes or no?

[The Prime Minister]

The European Union (Withdrawal) Bill brings the workers’ rights that are currently in EU law into UK law, which is why that sort of thing is a bit rich coming from Labour MPs who voted against bringing them into UK law.

[Simon Hoare (North Dorset) (Con)]

Does my right hon. Friend agree that as the process evolves, the terms hard Brexit and soft Brexit seem increasingly redundant? The cocktail that the Prime Minister seems to have deployed—her personal pragmatism coupled with some rather good Tory common sense—seems to be winning the day. I encourage her to continue.

[The Prime Minister]

I thank my hon. Friend for his comments. As he may recall, I have said in this House before that I do not accept the terms hard Brexit and soft Brexit. We are negotiating the best possible deal for the United Kingdom.

[Ann Clwyd (Cynon Valley) (Lab)]

The Prime Minister has agreed with me three times over the past year about the important role the European Parliament has in the negotiations, because it has the power of veto at the end of the day. Eighty-six MPs have signed a letter that urges the Prime Minister to address a plenary session of the European Parliament. When will she do that?

[The Prime Minister]

We have been in discussions with the President of the European Parliament about the interaction that I will have with that Parliament. I had hoped to be able to speak to the Conference of Presidents at the end of November, but unfortunately that proved not to be possible from a European Parliament point of view. Nevertheless, we are still discussing a date on which I can go, and I keep in regular contact with President Tajani.

[Rebecca Pow (Taunton Deane) (Con)]

Might I say what a fillip the good news from the Prime Minister and Mr Juncker on Friday gave to all the people I met around Taunton Deane over the weekend? It really did change the temperature. The businesses I spoke to do not want to be disrupted, so will the Prime Minister confirm that in the transition period they will be able to carry on trading as they do now, and that they will also be able to think about negotiating deals for when we leave?

[The Prime Minister]

I am happy to give my hon. Friend that reassurance. As I have said before, the point about the implementation period is to give that reassurance to businesses in particular that they will know the basis on which they can carry on trading. That is why we would expect the arrangements for the trading relationship during the implementation period to be much as they are now. Although we will be outside the customs union, the single market, the common agricultural policy and the common fisheries policy, as I said earlier, we need to be able to continue to operate during the implementation period as we prepare for whatever the new arrangements are going to be at the end of that period.

[Mike Gapes (Ilford South) (Lab/Co-op)]

Further to the Prime Minister’s answers to the hon. and learned Member for Edinburgh South West (Joanna Cherry) and the hon. Member for Bromley and Chislehurst (Robert Neill), will she confirm that the implementation or transition phase will be exactly the same for Gibraltar as it will be for Northern Ireland and the rest of the UK?

[The Prime Minister]

I thought I had made it clear that as we negotiate these matters we will be negotiating for the UK, but that includes negotiating to ensure that the relationships are there for Gibraltar as well. We are not going to exclude Gibraltar from our negotiations for either the implementation period or the future agreement.

[Giles Watling (Clacton) (Con)]

Given that 72% of my constituents in Clacton voted to leave the EU, will my right hon. Friend give an assurance to them that there will still be a smooth and seamless exit despite the vote on amendment 7 last Wednesday, thus giving them and many others a very happy Christmas indeed?

--- Later in debate ---

[The Prime Minister]

I am happy to confirm to my hon. Friend, as I did a little earlier, that we will be leaving the European Union on 29 March 2019 and that we will be negotiating a smooth and orderly process, so that people can carry on living their lives and conducting their business with confidence about that and about the future relationship that we will negotiate with the EU.

[Holly Lynch (Halifax) (Lab)]

Last week, I understand that the Fisheries Minister, who was representing the Government at the annual Fisheries Council in Brussels, was recalled to Westminster as early as Tuesday to take part in the votes on the European Union (Withdrawal) Bill. I am incredibly concerned that this Government prioritise seeking to deny Parliament a final vote on the Brexit deal over representing our fishing interests in Europe, missing crucial talks on sea bass and Celtic sea cod. Can the Prime Minister confirm that that was the case and will she explain who took over as the UK’s lead negotiator in those vital discussions?

[The Prime Minister]

There are many occasions in this House when Members on the hon. Lady’s Benches, and indeed sometimes on my Benches, stand up and promote the primacy of this House and of Parliament. As Members of Parliament, obviously, we have a responsibility to be here in this House, although my hon. Friend the Minister balanced the requirements of being able both to represent the United Kingdom and to be present in this House.

[Alex Chalk (Cheltenham) (Con)]

This weekend, I met representatives of the Romanian community in Cheltenham. On their behalf, may I thank the Prime Minister for her determination to secure an agreement on the rights of EU and British nationals, which has provided enormous reassurance? Does she agree that this shows, first, what can be done and, secondly, that whatever deal is struck, our values of respect and tolerance for foreign nationals in our country will endure?

[The Prime Minister]

I am very happy to agree with my hon. Friend, particularly on that final point. What we have seen over the phase 1 negotiations is that, with commitment and perseverance on both sides, we can achieve agreement. That should give reassurance to EU citizens living here and indeed to UK citizens in the EU 27. As we move forward, we will indeed continue to abide by our values, particularly our values of tolerance and respect.

[Mary Creagh (Wakefield) (Lab)]

Is not the result of this European Council that there will be no negotiations with the EU until March next year and no deal concluded between now and March 2019? The tragedy is that there is no deal that the Prime Minister can get with the EU that will be as good as the one that we have now.

[The Prime Minister]

I am afraid that the hon. Lady is wrong in her question. In fact, the discussions with the European Union will be starting very soon, both on the implementation period and looking ahead to the future partnership.

[Wendy Morton (Aldridge-Brownhills) (Con)]

I welcome the progress that the Prime Minister has made in moving the negotiations forward. In speaking to my constituents over the weekend, I know that they welcome that progress, too. When it comes to security, can she confirm that we will continue to work with our allies to protect ourselves both now and when we leave the EU?

[The Prime Minister]

I am happy to give my hon. Friend that reassurance. We envisage negotiating a separate treaty to cover the security arrangements. There are a number of programmes and operations in which we are involved in the European Union that we think it would be beneficial for us to continue to be able to access precisely to maintain the security of people here, but also in the EU 27.

[Stephen Kinnock (Aberavon) (Lab)]

Referring to the transition period, the conclusions of the European Council make the position clear. It says:

“In order to ensure a level playing field based on the same rules applying throughout the Single Market, changes to the acquis adopted by EU institutions and bodies will have to apply both in the United Kingdom and the EU.”

Will the Prime Minister please confirm, therefore, that the jurisdiction of the European Court of Justice will apply in precisely the same way now as it will during the transition period?

[The Prime Minister]

I have answered a question on that in previous statements that I have made in relation to the matter. We would expect, yes, that the European Court of Justice jurisdiction would start very similarly at the beginning of that implementation period, but as I said in response to one of my hon. Friends earlier, we are also clear that, if it is possible to negotiate, for example, the dispute resolution mechanism at an earlier stage and introduce it at an earlier stage, we would do precisely that.

[Geoffrey Clifton-Brown (The Cotswolds) (Con)]

I congratulate the Prime Minister on having got the negotiations so far. Will she confirm that two of the announcements that she has made today—namely, that we will have a humanitarian presence in the Mediterranean and will continue to provide official development assistance to Africa—signal this country’s intention to work with our European allies as closely as possible once we have left the EU?

[The Prime Minister]

My hon. Friend is absolutely right. The area of migration is a good example of how we will be continuing to work with our friends and allies in the European Union, even after we have left. This issue affects us all. We can have a greater impact if we all work together and we will continue to do that.

[Mr Pat McFadden (Wolverhampton South East) (Lab)]

The dog that has not barked so far in these discussions has been the voice of the service industries. They dominate our economy and make up 45% of our exports, and we trade in surplus with the rest of the EU in them. Does the Prime Minister accept that any future agreement aimed only at tariff-free access for goods would be selling Britain short, and that the benchmark for judging success must be the same market access that we have now for our global, world-leading service industries such as education, the creative industries and the financial services?

[The Prime Minister]

The Government and I have said all along that we are looking for an agreement that is right for both goods and services because we recognise the important role that services play in the economy of the United Kingdom. We will be going in and negotiating for services and for goods.

[Will Quince (Colchester) (Con)]

I very much welcome the Prime Minister’s statement, particularly her comments on workers’ rights and our intention to enhance them post-Brexit. Does she agree that, despite the bluster from the Labour party, this Government backing the Parental Bereavement (Leave and Pay) Bill is the first step in getting not just European-wide workers’ rights, but the best workers’ rights in the world?

[The Prime Minister]

My hon. Friend makes a point about a matter that I know is of particular interest to him. He has campaigned on the issue and been a champion of these rights, and he is absolutely right. We will be looking to enhance workers’ rights. The Government have already taken steps to enhance workers’ rights in a number of other areas, including by commissioning the Matthew Taylor report. That is our commitment. It is not just words; we actually act.

[Mr Alistair Carmichael (Orkney and Shetland) (LD)]

If we are to leave the common fisheries policy in 2019 and if we are not then going to trade away access to UK waters for non-UK fishing vessels, what else is there left to talk about as far as fisheries are concerned?

[The Prime Minister]

We will be leaving the common fisheries policy—and, as I indicated, the CAP—on 29 March 2019. The arrangements that pertain to fisheries during that implementation period will, of course, be part of the negotiations for that implementation period. Leaving the CFP and the CAP gives us the opportunity, post-implementation period, to introduce arrangements that work for the United Kingdom. The Environment Secretary is discussing with the fishing and agriculture industries what those future arrangements should be.

[Mr Simon Clarke (Middlesbrough South and East Cleveland) (Con)]

People in Middlesbrough South and East Cleveland will give a warm welcome to the progress that has been made with the talks, and I thank the Prime Minister for that. They will also have noticed the scarcely concealed disdain from the Opposition for the progress that has been made. Does she agree that we are actually paving the way to delivering precisely what we want, which is good trade access without compromising control of our borders and laws?

[The Prime Minister]

My hon. Friend is absolutely right. He puts it succinctly and very well indeed. We want to maintain good trade access, but we also want to be able to take back control of our borders and laws, and that is what we will do.

[Dr Rupa Huq (Ealing Central and Acton) (Lab)]

I congratulate the Prime Minister on the applause she got at the EU dinner—something that even George Osborne would never have predicted. But would not the assurance on the rights of EU nationals have been more useful 18 months ago? As we now hear that a compromise is being cooked up to stave off yet another rebellion, were humble pie and fudge on the menu?

--- Later in debate ---

[The Prime Minister]

A number of Members of this House urged me and the Government unilaterally to make declarations about EU citizens’ rights for those living here in the United Kingdom. I was always clear that a UK Prime Minister and a UK Government should have a duty of care to UK citizens living in the EU. The key to the agreement that has been reached is that it is reciprocal, so we can give confidence not only to EU citizens living here, but to UK citizens living in the EU 27.

[Martin Vickers (Cleethorpes) (Con)]

One reason 70% of my constituents voted to leave was their concern about the free movement of people. The Prime Minister referred to registering new arrivals from the EU. During the implementation period, will we be able to control those numbers? If that is not the case, will she be arguing that point during the negotiations?

[The Prime Minister]

Obviously, at the end of that implementation period, we will have worked up to putting into place fully the new immigration rules that we will have. So it will be possible for EU citizens to come to live and work in the UK during that implementation period, but there will be some differences in relation to that, registration being one of those. So there will be building blocks being put in place. This is exactly one of the sort of practical measures that I am thinking about when I say we need the implementation period, to be able to put practical steps in place that lead up to what our future arrangements and future rules will be.

[Emma Little Pengelly (Belfast South) (DUP)]

The Democratic Unionist party has long been a strong supporter of the people of Gibraltar. Can the Minister give a strong and clear commitment today that the people of Gibraltar will not be excluded from any transitional arrangements that may be agreed between the United Kingdom and the European Union?

[The Prime Minister]

I will say this again: we will be ensuring that decisions that we take at the various stages of these negotiations cover Gibraltar as well as the United Kingdom.

[Mr Philip Hollobone (Kettering) (Con)]

Do the reciprocal rights for UK citizens in the EU extend simply to the country in which they reside or across the whole of the EU27?

[The Prime Minister]

The question of onward movement is one that will be looked at further in the second stage of the talks. This is reciprocal in terms of EU citizens’ rights here in the UK and UK citizens’ rights in the country in which they live in the European Union. There are further elements of that that we will be discussing in the later stages.

[Wes Streeting (Ilford North) (Lab)]

One of the most frequent criticisms of this place is that politicians are unable to give straight answers to straight questions, so can I give the Prime Minister another opportunity to answer the questions from Streatham and from Penistone and Stocksbridge? Can she guarantee that, after we leave the European Union, there will be no attempt to water down the 48-hour limit on the working week, provided for by the working time directive? It is a very simple yes or no question.

[The Prime Minister]

I have said on a number of occasions this afternoon that we will be bringing those workers’ rights that are in European Union law into UK law, so those rights will continue to exist. The party in this House that has voted against bringing those rights into UK law is the Labour party.

[James Morris (Halesowen and Rowley Regis) (Con)]

May I commend the Prime Minister for her statement? As she will be aware, the west midlands economy has been an export powerhouse for the UK, so as she moves towards vital trade talks in relation to us leaving the European Union, does she agree that it is important that west midlands business and west midlands regional government are engaged very much in those discussions so that the west midlands can maximise the benefit of Brexit?

[The Prime Minister]

I absolutely understand and recognise the importance of international trade to the west midlands, and I am very clear that, as we go forward in these negotiations, we will be ensuring that we are negotiating for the whole United Kingdom. We will be taking the interests of all parts of the United Kingdom, including the west midlands, into account.

[Rachael Maskell (York Central) (Lab/Co-op)]

For absolute clarity, will there be no watering down of the working time regulations and the ECJ judgments that relate to those regulations?

[The Prime Minister]

These rights are enshrined in EU law at the moment. They will be brought forward into UK law in the EU withdrawal Bill, which we are putting through this House at the moment. This Government are committed to workers’ rights and are committed to enhancing worker’s rights. That is why I commissioned Matthew Taylor’s report.

[Jeremy Lefroy (Stafford) (Con)]

May I congratulate the Prime Minister on the progress made? May I ask her, following the question from the right hon. Member for Wolverhampton South East (Mr McFadden), to state again that the best possible deal will include trade both in goods, in which we have a large deficit, and in services, which are vital to our economy and in which we have a surplus?

[The Prime Minister]

I am happy to reiterate that confirmation to my hon. Friend. What we will be looking for in our future partnership is obviously a trade arrangement and a security arrangement, but in the trade arrangement we will be talking about both goods and services. We recognise the importance of services to the UK economy.

[Paula Sherriff (Dewsbury) (Lab)]

In her statement, the Prime Minister pointedly referred to the abuse that her election candidates received. Unless she and everybody else in this House, and the Daily Mail, accept that abuse comes from all sides and from all political parties, we will not make any progress. If she so wishes, I can accommodate her this week by showing her the litany of abuse that I have received during the election and since. Please will she accept that unless we accept that this comes from all areas, we will not move forward?

[The Prime Minister]

What I said in the statement was this: “there can never be a place for the threats of violence and intimidation against some Members that we have seen in recent days. Our politics must be better than that.” I stand by that. All political parties in this House must be aware of the need to ensure that our politics is conducted in the right way and there is no place for threats and intimidation.

[Kelly Tolhurst (Rochester and Strood) (Con)]

I congratulate the Prime Minister on the way that she has worked with the EU over the past few weeks and how she has moved things on to the next stage. Does she agree that during any implementation period, it is important and right that we do indeed negotiate trade deals with other parts of the world to make the most of these new opportunities, to benefit British business, our economy and, most importantly, the British people?

[The Prime Minister]

My hon. Friend is absolutely right. Of course, the work on negotiating those trade deals—on looking to see what is possible—has already been started within the Department for International Trade by my right hon. Friend the Secretary of State and the Ministers there. Only earlier last week, I was discussing with the President of Mexico that country’s desire to have a trade deal negotiated with us. It is one of the first countries to say that it wanted that. The point of the trade deals is exactly as my hon. Friend says: it is about bringing jobs, bringing prosperity and improving people’s lives.

[Mr Ronnie Campbell (Blyth Valley) (Lab)]

Is the Prime Minister sure and confident that the EU negotiators will not put more obstacles in her way on the second agreement, because quite honestly I would not trust them as far as I can throw them?

[The Prime Minister]

I am very clear about what we want to achieve in our negotiations. We will be working with our European friends and allies to ensure that the result of that negotiation is indeed a good deal for the United Kingdom. [Interruption.] Well, I think they will, because a good deal for the UK is a good deal for the EU as well.

[Paul Masterton (East Renfrewshire) (Con)]

Does my right hon. Friend agree that her phase 1 deal was a victory for pragmatism over purist ideology? Will she commit our Government to continuing in the same vein throughout these negotiations, putting jobs and economic prosperity at the heart of Brexit Britain?

[The Prime Minister]

I am very happy to give that commitment. What is important as we go through these negotiations is that we are very clear about what is in the British national interest, but willing to be very pragmatic and practical about that because we want to ensure that we get a good deal. I believe not only that we will get a good deal with the European Union, but that we have an ambitious and bright future for this country outside the European Union.

[Nick Thomas-Symonds (Torfaen) (Lab)]

On workers’ rights, the Prime Minister promised in her Lancaster House speech that she would ensure

“that the voices of workers are heard by the boards of publicly-listed companies for the first time.”

Why, in the past year, has she not introduced the changes to company law that would make that happen?

[The Prime Minister]

As the hon. Gentleman will know, the Department for Business, Energy and Industrial Strategy has published proposals to do exactly that.

[Robert Courts (Witney) (Con)]

I congratulate the Prime Minister on this agreement, particularly with regard to reciprocal rights for UK and EU nationals. Does she agree that both for UK nationals abroad and for much-valued European members of our communities here, such as those in west Oxfordshire, this agreement represents security and reassurance?

[The Prime Minister]

I am very happy to say exactly that to my hon. Friend. A number of hon. Friends have commented on comments that have been made by their constituents who are EU citizens that they do now feel reassured as a result of the phase 1 negotiation. I was clear that citizens’ rights should be one of the early issues that we addressed. We have done just that, and we have given people confidence for the future.

[Peter Kyle (Hove) (Lab)]

The Prime Minister has spent inordinate amounts of time reconciling the divisions within her own Cabinet, but no time whatsoever doing so for the public. Now that we are entering the most difficult part of these negotiations, what will she do specifically not only to deliver on the aspirations and excitement of those who voted leave, but to take into account the anxieties of people who voted remain?

[The Prime Minister]

Regardless of whether somebody voted leave or remain, I think the key focus for us all now is to ensure that we get the best possible deal for the United Kingdom as we leave the European Union. That is what the Government are focused on, and that is what we are going to do.

[Robert Jenrick (Newark) (Con)]

Never have my constituents in Newark been so grateful to wake up to Jean-Claude Juncker as they were a week ago on Friday, when they saw the Prime Minister shake hands with him. Looking to the future, as she goes to strike a comprehensive free trade deal, does she agree that although businesses in Newark would like a seamless transition, they would also like us to strike out and have enough capacity to become a more innovative country, rather than aligning solely with the European Union?

[The Prime Minister]

I think that there are many areas in which we in the UK are already showing our ability to innovate. We have great, world-leading businesses at the cutting edge of technology in, for example, the automotive industry, and in other areas. Of course, once we leave the European Union, I want to encourage that innovation and that creativity, because I want to ensure that we see a brighter future for this country, and exactly that sort of innovation and creativity can help to encourage that.

[Jonathan Edwards (Carmarthen East and Dinefwr) (PC)]

It is nearly a year since the Lancaster House speech, but the British Government have not published the detail of their preferred trade framework to replace membership of the single market and the customs union. Why has it taken the Prime Minister so long to summon the Brexit war Cabinet to start that work? Is it not the case that the Government and the Conservative party are split about what happens after transition?

[The Prime Minister]

No. There have been various stages to the negotiation. I set out the framework for that future trade relationship in my Florence speech in September, and we will of course now negotiate the further details of it.

[Kevin Foster (Torbay) (Con)]

I welcome the Prime Minister’s statement, and the progress that has been made in the negotiations. I was particularly pleased to hear reference to Russia and to the fact that we are looking to continue our co-operation. At the European Council, did she reassure our European partners that we maintain our absolute commitment to the defence of Europe, based on the bedrock of the north Atlantic treaty?

[The Prime Minister]

I can absolutely give that reassurance to my hon. Friend. We are unconditionally committed to maintaining Europe’s defence, and we will continue to play a key role in Europe’s defence. We will do so, obviously and crucially, through NATO, but we also want to continue to work with our European friends and allies.

[Mr Barry Sheerman (Huddersfield) (Lab/Co-op)]

The Prime Minister has been toiling away in Brussels, trying to get on to the second stage. But when she came back, she must have seen, as my constituents did, her senior colleagues—including the Foreign Secretary—saying in the Sunday papers that she is leading us towards being a “vassal state”. Will she give my constituents, and people up and down the country, a crystal clear answer to this question: is she leading us towards being a vassal state, with a subservient role in Europe? If that is not the case, will she sack her Foreign Secretary?

[The Prime Minister]

No, and no.

[James Cartlidge (South Suffolk) (Con)]

I warmly congratulate my right hon. Friend on securing progress, which was strongly welcomed by businesses in South Suffolk. On the point raised by the right hon. Member for Wolverhampton South East (Mr McFadden) and my hon. Friend the Member for Stafford (Jeremy Lefroy) about services, does she agree that not only do we need to have services in the future agreement, but—given that our surplus with the EU is £15.5 billion and rising rapidly—we need to have the very best possible access for that dynamic part of our economy?

[The Prime Minister]

I absolutely agree, and I fully recognise not only the importance of the role that services play in our economy, but the fact that the balance of relationship with the European Union in services is different from that in goods. Services are a great part of our economy. I want to ensure that we continue to have good trading relationships in services and that we look at how we can enhance our trading relationships in services around the rest of the world.

[Tom Brake (Carshalton and Wallington) (LD)]

In the press this morning, there were reports that in advance of the meetings today and tomorrow, Ministers have received assessments of impact of the different models of Brexit—or, indeed, impact assessments. Can the Prime Minister confirm whether that is correct, and, if so, would she be willing to put them into the public domain?

[The Prime Minister]

We have been very clear that, as the right hon. Gentleman knows, what he refers to as impact assessments do not exist. The answer to his question is simply no.

[Mr Nigel Evans (Ribble Valley) (Con)]

I know I can be a little slow at times, but I am finding it incredibly difficult to discern what the policy of Her Majesty’s Opposition is to Brexit, as it changes depending on whom I am listening to—

--- Later in debate ---

[Stephen Timms (East Ham) (Lab)]

To avoid, rightly, a hard border between Ireland and Northern Ireland, the Prime Minister has committed the UK, if necessary, to

“maintain full alignment with those rules of the internal market and the customs union”

that are necessary. Will such full alignment apply just to Northern Ireland, or to the UK as a whole?

[The Prime Minister]

As the right hon. Gentleman knows, we believe that we can actually deliver on having no hard border between Northern Ireland and Ireland through the overall relationship that we negotiate between the UK and the European Union. Failing that, we will look at specific solutions that match the unique circumstances of Northern Ireland, and failing that, we will move to the concept of full alignment, which is about having the same objectives on both sides. If he carries on reading the progress report, it makes it clear how that would operate: it could be UK-wide or, with the agreement of the Northern Ireland Executive and Assembly, it could be specific to Northern Ireland.

[Edward Argar (Charnwood) (Con)]

I welcome the sensible and pragmatic agreement on phase 1 that my right hon. Friend has secured. Opposition Members confidently, and wrongly, suggested she could not do that, and yet again, as on so much, she has proved them wrong. Just as she has delivered for the UK on phase 1, will the Prime Minister reaffirm her determination to prove them wrong again and secure a good trade deal in phase 2, in line with her Lancaster House speech?

[The Prime Minister]

Yes, I can confirm to my hon. Friend that the principles set out in the Lancaster House speech continue to apply. Obviously, I elaborated on those in the Florence speech, and we will be continuing to do so as we move forward into those negotiations. I believe we will achieve an ambitious comprehensive free trade agreement with the European Union, because I think it is in their interests as well as ours.

[Chris Stephens (Glasgow South West) (SNP)]

I will try to be the seventh Member of the House to receive a crisp answer on workers’ rights. Will the Prime Minister confirm that there have been no discussions with the European Union or in her Cabinet, and that there are no planned discussions with the European Union or in her Cabinet, on scrapping the working time directive, the agency workers directive and the pregnant workers directive, as advocated by her Ministers in the recent past?

[The Prime Minister]

The negotiations that we have been having with the European Union have not covered workers’ rights. Workers’ rights as they exist in EU law will be brought into UK law through the Bill that is going through Parliament. We already have a situation in the United Kingdom where, in some areas, we have better rights for workers than exist in the European Union, and we will continue to enhance those rights.

[Matt Warman (Boston and Skegness) (Con)]

For the Prime Minister’s negotiations to be meaningful, they must of course include considering the possibility of a no-deal scenario, but does she agree with me that the pragmatism shown by both sides last week demonstrates that such an outcome is now considerably less likely?

[The Prime Minister]

My hon. Friend is right. We have to prepare for all contingencies and continue to include among them the possibility of no deal, but what has been shown by the phase 1 negotiations is that, with perseverance and commitment on both sides, we can reach agreement.

[Ruth Cadbury (Brentford and Isleworth) (Lab)]

The majority of UK citizens would now prefer us to remain in the EU, because they are realising what many of us knew for a long time, which is that leaving the EU means greater costs to the economy and to UK taxpayers than staying in and that we will no longer have a voice at the table in Europe. Will the Prime Minister start leading the country, or will she continue to be led by the hard Brexiteers in her own party?

[The Prime Minister]

The hon. Lady seems to have forgotten one thing: this Parliament voted overwhelmingly for a vote to take place in a referendum on our membership of the European Union. That vote took place, and it was a close vote, but the majority voted to leave the European Union. I think—and I have always felt this—that in other circumstances when other countries in the EU held a referendum on new treaties and came out against them but the EU basically told them to go back and think again is not the right way. If the British people have voted to leave, we should leave.

[Nigel Huddleston (Mid Worcestershire) (Con)]

I congratulate the Prime Minister on the practical and sensible approach she has adopted towards the Brexit negotiations, as opposed to the flip-flopping, contradictions and wholly unrealistic expectations we have heard from the Opposition parties. Does she agree that if a party wishes to position itself as the party of remain, it ought just to be honest and come out and say so?

[The Prime Minister]

I absolutely agree with my hon. Friend. The flip-flopping just this weekend from the Labour party shows that it cannot make up its mind what its view is on Brexit. That is all the more reason why it is a good job we are in government and not Labour.

[Mr Speaker]

Ingenuity and good order are not incompatible, as the hon. Member for Mid Worcestershire (Nigel Huddleston), at least, has just demonstrated.

[Wera Hobhouse (Bath) (LD)]

Can the Prime Minister give an example of an EU border with a country outside the customs union where there is no hard border and there are no border checks?

[The Prime Minister]

I think what the hon. Lady is trying to get at is whether it will be possible to do what we have said we will deliver for Northern Ireland and Ireland. The answer is yes, and we have already set out some ways in which it could be done.

[Albert Owen (Ynys Môn) (Lab)]

I welcome the progress that has been made on the Irish question, but I am disappointed by the response the Prime Minister gave to my right hon. Friend the Member for East Ham (Stephen Timms). Will she state categorically that Welsh sea ports, including the port of Holyhead in my constituency, which is the busiest on the western seaboard, will have equal status with ports in Scotland, England and, indeed, Northern Ireland when it comes to trade and the movement of people?

[The Prime Minister]

The progress report that was agreed between the United Kingdom and the EU was clear about the significance not just of north-south trade but of maintaining east-west trade. I and the Government are very clear about the need to maintain not just the constitutional integrity of the United Kingdom, but the economic integrity of the United Kingdom.

[Jack Dromey (Birmingham, Erdington) (Lab)]

The mask slipped at the weekend, when the Foreign Secretary let slip that changes might be made for the worse to British workers’ rights on working time, even though they are already working the longest hours in Europe. The Prime Minister has today refused to give a cast-iron guarantee that there will be no changes for the worse. Does that not demonstrate that we can never, ever trust the Tories with workers’ rights?

[The Prime Minister]

I will tell the hon. Gentleman who cannot be trusted with workers’ rights—a Labour party that voted against bringing workers’ rights into UK law.

[Paul Flynn (Newport West) (Lab)]

How and when will Wales enjoy the alleged benefits of the regulatory alignment that will be enjoyed by Northern Ireland? How can it possibly work?

[The Prime Minister]

As I indicated in response to an earlier question, the reference to full alignment in the progress report is not the first option in ensuring that there is no hard border between Northern Ireland and Ireland. We believe that we can achieve that through the overall relationship between the United Kingdom and the European Union. That is what we will be working for.

[Alan Brown (Kilmarnock and Loudoun) (SNP)]

In her statement, the Prime Minister said that our “universities remain a highly attractive destination for students from across the EU”. The blunt reality is that the number of applications from EU students has gone down. On EU citizens’ rights, she said she was “providing vital reassurance to all those citizens and their families in the run-up to Christmas.” Just last week, the Select Committee on Environment, Food and Rural Affairs heard confirmation from a seafood supplier that at this moment in time, his employees do not feel any reassurance. To allow Scotland to take control of this situation, does she agree with the Secretary of State for Environment, Food and Rural Affairs that post-Brexit, Scotland should have control of its own immigration policy?

[The Prime Minister]

If I heard the hon. Gentleman correctly, he was not correct at the beginning of his question. In 2009-10, the number of non-UK EU higher education students in the UK was 100,275. In the 2015-16 academic year, the figure had gone up to 112,410.

[Clive Efford (Eltham) (Lab)]

The £39 billion is to pay for commitments that we entered into freely when we were a full, operating member of the European Union. If we fell out of the European Union and failed to pay that bill, what freedom would the European Union and independent European Union countries have under WTO rules to interfere with the trade agreements we would be negotiating with other countries?

[The Prime Minister]

As the hon. Gentleman says, we have negotiated in phase 1 a financial settlement that is representative of the commitments I said we would honour over this period. It is there in the context of the future deal being agreed, but I am optimistic we will agree that future deal.

[Neil Gray (Airdrie and Shotts) (SNP)]

If there are to be opportunities from Brexit and if we are to avoid the large potential pitfalls, it is crucial that all the nations of these isles have their priorities heard, listened to and acted on. How does the Prime Minister plan to expand consultation with the Governments of all the nations of these isles in the next phase, to avoid the very clear issues from the first phase of the negotiations?

[The Prime Minister]

Discussions and engagement with the devolved Administrations have already been enhanced over recent weeks and months. The First Secretary of State has regular meetings with the Scottish and Welsh Governments. That engagement will continue.

[Karin Smyth (Bristol South) (Lab)]

The phase 1 agreement rightly confirms the Government’s commitment to the Good Friday-Belfast agreement. Further to her answer to my right hon. Friend the Member for East Ham (Stephen Timms), will the Prime Minister assure my constituents that their rights to travel, work and study across the EU will be aligned across the United Kingdom?

[The Prime Minister]

When we leave the European Union, the position of UK citizens will change in relation to the European Union. In relation to Ireland, we will maintain the common travel area so that the rights of movement, which existed long before either Ireland or the UK were a part of the European Union, will continue.

[Sammy Wilson (East Antrim) (DUP)]

Michel Barnier’s comments this weekend indicate that he may wish to make the UK a vassal state of the EU after we leave. Is the Prime Minister encouraged, however, by the reaction of Italy and Belgium? They recognise the strength and significance of the UK, and believe a special relationship is desirable. What plans does she have to go to member states to sell the UK’s case for a good relationship after Brexit?

[The Prime Minister]

I was interested to note the comments, made by a number of other countries, that the future relationship we will negotiate with the European Union would, as the hon. Gentleman says, be a tailor-made or bespoke arrangement for the United Kingdom. I assure him that not only will I be having interaction with the other EU27 leaders, but that Government Ministers will be meeting their opposite numbers and talking to them about the significance of the continued relationship with the UK and the EU.

[David Linden (Glasgow East) (SNP)]

We know that Brexit will be an unmitigated disaster for young people across these islands. With regards to the specific reference to the Erasmus project in the statement, by the time first-year students at Lochend High School in Easterhouse get to university will they still be able to enjoy Erasmus?

--- Later in debate ---

[The Prime Minister]

I said in my statement that for the remaining three years of this budget plan, we will be maintaining access to the Erasmus programme. For the future, it is one of the programmes that will be a part of the negotiations on our future relationship.

[Alex Cunningham (Stockton North) (Lab)]

My constituency is home to world class chemical companies that are anxious that the European REACH––registration, evaluation and authorisation of chemicals—standards, which regulate their products and guarantee their markets, will still apply after they leave the EU and beyond the implementation period. As trade talks start, will the Prime Minister do something to assure them that that will be the case?

[The Prime Minister]

We recognise the importance of this particular industry. Part of the trade talks and negotiations will be looking at the basis on which trade will carry on between the remaining European Union member states and the United Kingdom. That is the same in any trade agreement that a country enters into.

[Mr Speaker]

It is no bad thing, either for the hon. Gentleman or for the House, if the Scottish National party Chief Whip is in the guard’s van.

[Patrick Grady (Glasgow North) (SNP)]

I had the underwhelming experience this morning of visiting the Brexit Reading Room. For each of the 39 documents, I was left with the very clear impression that they do not contain any commercially sensitive or negotiation-sensitive information, so why not share that experience with the country and put them in the public domain?

[The Prime Minister]

The papers have been provided for the Select Committee. The formal position is that once the papers are in the hands of a Select Committee, it is up to them whether or not they are published.

[Mr Speaker]

Order. I thank all colleagues, in particular the 77 Back-Bench Members who questioned the Prime Minister and the Prime Minister for her extremely succinct replies.