Brexit news latest: No 10 plans to push deal past Cabinet as hopes rise of talks breakthrough with EU

Hope: senior figures believe EU negotiator Michel Barnier will drop his insistence on a Northern Ireland-only backstop
AP
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Downing Street is making plans to steamroll a Brexit deal past Cabinet amid hopes at No 10 that the European Union is inching towards a crucial concession, insiders believe.

Senior figures in Government are convinced that Michel Barnier, the EU’s chief negotiator, will drop his insistence on a Northern Ireland-only backstop.

In Brussels, senior officials denied they were ready to make the concession, with one saying the British proposals could not be made to work in time to draw up a legally binding deal.

The pound climbed a full point this morning after reports suggested talks were progressing. Whitehall did not deny a Times report that a deal had been struck on the City’s access to EU markets, albeit only “equivalence”, which would mean less access than now.

The rise was also fuelled by a letter from Brexit Secretary Dominic Raab claiming a deal could be done within three weeks, which EU sources said “blindsided” them.

Dominic Raab claimed a deal could be done within three weeks
REUTERS

According to Whitehall sources, the sides are discussing a fudge in which the term “backstop” would be dropped and details of a temporary customs arrangement and increased regulatory checks across the Irish sea would be kept vague for at least another year.

Under one scenario being canvassed in Whitehall, the prime minister would announce any agreement as a fait accompli before it is formally put to the full Cabinet, preventing ministers from blocking it.

EU leaders would make clear they have finished negotiations and will not consider any alternatives.

The tactics would put Brexiteers in the Cabinet on the spot, with Commons leader Andrea Leadsom and Esther McVey believed to be the most likely to resign. Brexit-backing MPs think key Brexiteers such as Michael Gove and Liam Fox would stay.

Formal Brexit talks are still on hold, EU officials say.

While the prime minister’s EU advisor, Olly Robbins, was in Brussels this week, this was billed as technical talks, not formal negotiations.

“We wait, explore, chat, imagine things with our UK partners,” said one EU official, adding that Mr Raab’s letter was a “non-story”.

A high-ranking EU diplomat said the UK appears “determined to finish in November”.

But Irish foreign minister Simon Coveney said yesterday that it is up to the UK to make a move next week if a deal is to be done this month.

The bloc favours a “backstop” that would keep Northern Ireland locked into selected EU customs and agri-food standards until a new trade deal has been agreed.

But the UK has proposed a temporary UK-EU customs territory, which would be agreed in a transition period after March 2019.

The EU is sceptical as the plan is untested and fails to cover regulatory standards, beyond customs, to which the bloc holds its companies.

EU diplomats briefed on this week’s talks spoke of a “positive atmosphere” but said little real progress had been made.

One said: “We’re worried the conditions are not there in the UK for them to handle their process.

"The politics are so complicated, we may end up having too little time.” The current talks cover merely a legally binding withdrawal deal and the £39 billion “divorce” payment.