Theresa May says we CAN have a special deal for Britain’s banks after Michel Barnier declares war on the City
The Prime Minister's Official Spokesperson said she believed Britain could get a 'deep and special partnership' that would include a good deal for financial services
BRITAIN should have a special Brexit deal to protect London's booming banking sector, Theresa May has said.
The Prime Minister hit back at EU chief Michel Barnier today, after he said it wasn't possible to allow the UK to continue to be part of markets that allow banks to trade in the EU.
The Prime Minister's Official Spokesperson said that although cabinet did not discuss Mr Barnier's words: "As we’ve said throughout, we’re confident of negotiation a deep and special economic partnership that will include a good deal for financial services.
"As we’ve always been clear that will be in the EU’s best interests as well as ours."
Declaring war on the City yesterday, Mr Barnier was adamant that banks would lose the passports that allow them to trade freely right now.
He told the "There is no place [for financial services]. There is not a single trade agreement that is open to financial services. It doesn’t exist."
The comments came after ministers met for the first time to officially discuss what our future of the EU will look like.
They confirmed they wanted a new deal - and not one that would force us to abide by EU rules like Norway does.
25 ministers spoke during today’s detailed talks, which lasted for an hour and 45 minutes, according the Prime Minister’s official spokesman.
Theresa May has repeatedly said she wants a "new deep and special partnership" after we leave the bloc, and promised yesterday to make sure we can deals on day one of Brexit in March 2019.
A spokesperson said today that both the Prime Minister and Brexit Secretary David Davis were clear that the UK wanted a "bespoke" deal for Britain.
Cabinet agreed that it was "democratically unsustainable" to stay in the European Economic Area like Norway - because we would have to abide by the EU's rules.
And that we would seek a far more ambitious deal than Canada had with the bloc.
The spokesperson added: “It was a good, clear, detailed discussion in which there were contributions from a large majority of the Cabinet.”
Last week he called for a "Canada plus plus" deal with the bloc to be thrashed out.
Other EU capitals are already trying to woo banks and staff abroad before Brexit amid fears that Europe's banking capital will be weakened outside of the market.
But Mr Davis said the European Commission could not "cherrypick" which sectors it wanted to include, and which it did not.
He said that trading goods and services - like in the financial sector - would be treated as part of the same deal.
A Whitehall source said: "they either want to have a broad economic relationship with the UK, or they don’t".
Mr Barnier also told the newspaper that a trade deal could be worked out as part of a two-year transitional deal, but warned that it would have to be ratified by 35 regional and national parliaments first.
In a boost for Mrs May he confirmed that the UK could negotiate trade agreements with the rest of the world during an interim period - but they won't be able to come into force until afterwards.
However, he will risk infuriating Tory backbenchers by insisting that Britain must abide by EU rules in the period - even new laws passed after Brexit day in March 2019.
Mr Barnier's right-hand man Stefaan De Rynck said the same thing yesterday - and insisted that Brexit would harm Europe as well as Britain.
Last week EU leaders agreed to move on to talks about a transition and trade deal with Britain, after months of wrangling about money, Northern Ireland and citizens rights.
Negotiations are expected to start in the New Year, after Mrs May secures a united position in her warring cabinet.
Remainers Philip Hammond and Amber Rudd want to stay as close to EU rules as possible, but Brexiteers like Boris Johnson and Micheal Gove want Britain to branch out and set its own agenda.
Britain's factories boom at the fastest pace in 30 years
By Hugo Gye
BRITISH factories are booming at the fastest pace in 30 years thanks to a rise in demand from abroad after Brexit, it has emerged.
A manufacturing survey by the CBI business group found factories have been forced to ramp up production in response to soaring numbers of orders.
28 per cent of manufacturers said they have more orders than usual, with just 11 per cent saying demand was weaker than normal.
The 17-point difference between the two numbers is the largest since 1988 - the middle of the boom sparked by Margaret Thatcher.
The leap in demand is believed to be linked to the fall in the pound after Brexit.
The cheaper pound makes goods from the UK more affordable to foreign buyers, providing a bonanza for British exporters.
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Mrs May is set to give another Brexit speech next year to set out their position to the EU.
EU leaders will sign off guidelines on a transition deal and trade talks in March.
Mr Barnier added: "I hope very much that we will have a clear position from the British Government by this time."