The day’s coverage of Theresa May’s Brexit speech, with reaction and analysis
Theresa May’s Brexit speech - Summary and key extracts
Key points from May’s Brexit speech: what have we learned?
6.21pm GMT
Just over six hours after Theresa May began her much-touted speech on Brexit, it’s time for a summary of what we’ve learned today.
5.46pm GMT
Guy Verhofstadt, who will lead on Brexit talks for the European parliament, has taken to Twitter to give is slightly sceptical reaction to May’s speech:
Britain has chosen a hard Brexit. May's clarity is welcome—but the days of UK cherry-picking and Europe a la cart are over.
Threatening to turn the UK into a deregulated tax heaven will not only hurt British people—it is a counterproductive negotiating tactic
May must take the concerns of the 48% on board. The current lack of clarity for UK citizens in the UK & vice versa is disrupting many lives
5.27pm GMT
We now have a comment piece by the Lib Dem leader, Tim Farron.
Related: Whether you’re leave or remain, Theresa May just betrayed you on Brexit | Tim Farron
5.12pm GMT
Jeremy Corbyn has used Twitter to challenge May on her choice of outlining her Brexit plan in a speech rather than to parliament.
.@Theresa_May if you're so interested in parliamentary sovereignty why was your speech not made in Parliament? Determined to avoid scrutiny? pic.twitter.com/1FppZo088N
4.58pm GMT
We have a story giving details on the section of May’s speech in which she refused to offer immediate confirmation about the fate of overseas EU nationals living in the UK.
Related: Deal on citizens' rights lacks full EU backing, May says
4.55pm GMT
This is Peter Walker taking over from Andrew. I’ve just been to the afternoon lobby briefing, where May’s spokeswoman gave no new information as such about the speech, but did formally confirm a couple of points.
The first is that while parliament will get a vote on the final deal, that definitely does not open the possibility of Brexit being reversed or renegotiated.
We will be having a negotiation. The outcome MPs will have an opportunity to vote on that... Whatever happens, we will be leaving the EU.
We’re focused on more trade, more work with other countries. That’s what in all of our interests, and we’re going to go after that ambitious, bold relationship.
We have been very clear that we are negotiating the United Kingdom’s exit from the EU, as the United Kingdom.
4.37pm GMT
Here are two Labour MPs on Theresa May’s speech.
From Yvette Cooper
Start of May speech says protect workers rights. End threatens to ditch them/UK model if we don't get deal we want. So much for protection!
PM's middle way on customs union could fall foul of WTO rules, customs union must cover the majority of trade between two countries #brexit
4.34pm GMT
Jean-Claude Piris, a former head of the European council’s legal service, told the Guardian that the speech contained no big surprises except the proposal for “a bizarre customs union” with the EU, which, he said, would not be allowed under the General Agreement on Tariffs and Trade, the trade pact that falls under the World Trade Organisation. “The GATT/WTO would not allow such thing, neither the EU,” he said in emailed comments. “Ask Turkey.”
Turkey has a customs deal in goods with the EU, but has to open its markets to any country with an EU trade deal, without having much say. Piris said:
Otherwise she is asking for the moon, which is normal at the starting of negotiations. She is logically requesting the vital period of transition the UK badly needs, and is affirming that the issue of the Irish borders shall be solved without saying how.
One cannot have half a customs union. That would break WTO rules. I think it is obvious the UK will have to leave all its current trade arrangements through the EU and start with a new agreement.
What she is probably nodding towards is an arrangement where there wouldn’t be tariffs introduced between the UK and the EU through a free-trade agreement.
4.32pm GMT
Here is the Guardian’s Europe correspondent Jon Henley discussing Theresa May’s speech.
4.25pm GMT
Sylvie Goulard, a French liberal MEP, who closely follows Brexit, thought the prime minister struck a friendlier tone, compared to her party conference speech. The speech was “a PR communication for the rest of Europe”, the MEP, said, but the British prime minister’s threat to turn Britain into a low-tax island was unmistakable, she added.
“Blackmailing partners is never a good thing. Certain declarations have a certain tone, which is not nice,” she said, also referring to the chancellor Philip Hammond’s warning that the UK could become a low-tax haven for corporations.
4.17pm GMT
More from Italy. Asked about Theresa May’s remarks, one Italian government official said he doubted that the UK could be as strong outside the EU as it is in the EU.
“Good luck on being a ‘Global Britain’,” the official said.
4.15pm GMT
Here, chosen relatively randomly, are three Twitter threads on the Theresa May speech that are interesting.
From Bruno Waterfield, the Times’ Brussels correspondent
1/3) Most of May’s speech chimes with what EU expects from A50 negotiations. BUT nothing on transition timing or type of FoM restrictions
2/2) EU sees divorce & political decision on final destination in A50 2 yrs with series of phased, sectoral agreements getting there
3/3) UK leaving EU common commercial policy. May flags possibility of special customs deal, EU looking into what that would involve
No big surprises or asks in May’s speech which overlaps with EU side’s view of how A50 talks will be structured
Striking omissions were any details of restrictions, plans for Brexit migration system & silence on UK’s financial liabilities to EU
I'm wondering if part of May's hard Brexit calculations reflect a gamble based on diffs in how public will attribute responsibility 1/? https://t.co/0HfcoBUqIY
2/? Seems v likely May believes voters will blame her & govt if Brexit does not reduce imm. Will be concl of her long HO tenure
She may think blame for any economic disruption will be easier to divert/shake off. Effects diffuse, complicated, many spread over yrs
3/?This might or might not be right. Voters clearly do hold govts to account for current econ conds, so if "hard Brexit" triggered recession
May would have major problem. If it triggered a slow puncture style gradual loss of investment, relative position, maybe not.
Either way, gamble may be "Voters will definitely blame me if I keep FoM to stay in single mkt. There's good change they *won't* blame me...
for the disruptions of leaving single mkt". Gamble is between definite political hit and possible political hit.
Extended talk of UK exceptionalism, calls for more versatile & imaginative EU... May wants to nudge EU27 in direction of Bruegel proposals
Ie she wants EU27 to see Brexit as chance to create template for other countries unsuited to full membership: Serbia, Turkey, Ukraine etc
As I've been predicting for a while: May going for Canada option plus some paid-for services access
In other words: extensive access for the things rEU sell UK (goods), not so much for the things UK sells rEU (services)
4.10pm GMT
Lib Dem leader Tim Farron poured scorn on the promise to give parliament a vote on the final deal and said the prime minister should commit to a referendum. “It means parliament, half of which is not elected, will get a say on a stitch-up deal of which we do not know the content and the British people won’t,” he said.
“No deal that Britain is going to get through this process is better than the one we’ve got now.”
4.08pm GMT
Sandro Gozi, Italy’s undersecretary for European affairs, said May’s speech at least offered some clarity and certainty on the UK’s objectives.
“It is now finally clear what they want. They want to leave for good and they want a full Brexit,” he said, adding that one aspect of her speech surprised him.
Nobody wants revenge, nobody wants vengeance, we fully respect it as a British sovereign decision and we respect the approach on negotiations. Of course, losing an important member like the UK is a loss. It will be a bigger loss for the UK ... [the negotiation] will be a damage limitation process.
4.05pm GMT
German industry welcomed Theresa May’s speech for providing clarity but made clear that it believed a hard Brexit would do substantial damage to business ties between Britain and the European Union.
Volker Treier, head of the German Chamber for Industry and Trade said that the speech had at last ended a debate about “cherry-picking” but that a “hard Brexit” would limit chances of growth “on both sides of the Channel”, with Great Britain likely to take a harder hit.
After Brexit is completed, German businesses are planning to reduce their economic investment on the island. Another consequence would be write-offs to the tune of billions, because German business had invested into Britain because of its membership of the single market. Such write-offs would then not be reinvested.
To date, German companies have built up factories and businesses to the value of 120 billion euros. These companies employ around 400,000 people in Great Britain.
4.01pm GMT
Sir Keir Starmer’s comment about Theresa May avoiding a hard Brexit (see 2.27pm) is attracting criticism from some fellow opposition MPs.
Here is the Green MP Caroline Lucas.
Have a lot of respect for @Keir_Starmer but totally disagree with this. May's plans are an extreme gamble with Britain's future #brexit https://t.co/ghzdg8r1fm
How is Sir Keir Starmer's no hard Brexit Commons claim compatible with Corbyn's description of a "bargain basement" Brexit? #BrexitPuzzle
3.55pm GMT
Rupert Harrison, who worked as George Osborne’s chief of staff when Osborne was chancellor, does not take the Keir Starmer line. Harrison thinks Theresa May’s speech meant we’re getting a hard Brexit.
Pretty much hard Brexit - TM seeking to control events even if at some cost. But now not in control of outcomes on trade deal and customs
Pound up during the speech - smart to pre brief market negative news on the single market. All the political bad news seems to be out now
On reflection biggest hostage to fortune in TM's speech is agreement within 2 years. Big ask, likely to be fudged w transition in some areas
3.50pm GMT
The Labour MP John Mann thinks today’s speech has reduced the chances of an early election.
Not possible forPM to call snap election this year- needs threat/ opportunity of calling election if Parliament votes down negotiated deal
3.45pm GMT
Answering questions on the Le Monde live blog, Philippe Bernard, Le Monde’s London correspondent said:
The prime minister’s declarations do not clear up the numerous uncertainties surrounding Brexit. She has outlined certain objectives, but nothing says they will be achieved by the end of the negotiations. The impossibility of seeing what the future holds continues to exasperate the City and if the performance of the British economy right now is much better than forecasts indicated, most experts are expecting a shock in the months to come.
3.29pm GMT
Donald Tusk, the president of the European council, summed up May’s speech in a tweet: “Sad process, surrealistic times, but at least more realistic announcement on Brexit. EU 27 united and ready to negotiate after Art.50.”
Sad process, surrealistic times but at least more realistic announcement on #Brexit. EU27 united and ready to negotiate after Art. 50.
3.24pm GMT
Michel Barnier, the European commission’s chief Brexit negotiator, has responded to Theresa May’s speech on Twitter. He implies that getting a transitional deal (“agreement on an orderly exit”) will be a priority.
Ready as soon as UK is. Only notification can kick off negotiations. #Brexit
Agreement on orderly exit is prerequisite for future partnership. My priority is to get the right deal for EU27. #Brexit
3.21pm GMT
Carolyn Fairbairn, the CBI’s director general, says Theresa May’s speech has “changed the landscape”.
Today the prime minister changed the landscape. Ruling out membership of the Single Market has reduced options for maintaining a barrier-free trading relationship between the UK and the EU. But businesses will welcome the greater clarity and the ambition to create a more prosperous, open and global Britain, with the freest possible trade between the UK and the EU.
The pressure is now on to deliver these objectives and achieve a smooth and orderly exit.
3.17pm GMT
Theresa May’s threatening tone on the need for the EU to wave off the UK with a good deal has not gone unnoticed in Spain. The London correspondent of the conservative daily ABC felt the prime minister had been abundantly clear in setting out her stall.
“So it’s a hard, hard Brexit then,” wrote Luis Ventoso.
The prime minister has confirmed that the UK will leave the European single market, with its 500m people, despite the wishes of business leaders and the Bank of England. However, May wants to retain the advantages of the customs union … The prime minister also allowed herself to threaten the 27 [EU member states] with a trade war if they ‘punish the United Kingdom’ during the negotiations. She warned that Britons will respond with aggressive corporation tax cuts to attract businesses to their country. She also said that EU businesses would suffer if they lose access to the City of London – although it will probably be the other way round. Her threats are a little bold given that exports to the EU account for 13% of Britain’s GDP, while the exports of the 27 EU countries to the UK represent just 3% of their GDP.
3.16pm GMT
Here is the Polish Europe minister Konrad Szymański on Theresa May’s speech.
I agree with PM May that it is necessary to secure the rights of EU citizens in Britain and this issue should be one of the first to resolve.
We are convinced that EU citizens residing in UK should be treated equally and keep the rights regarding employment, access to public services and social security systems.
3.10pm GMT
Paul Nuttall, Ukip’s new leader, has mostly welcomed Theresa May’s speech. In a statement he said:
Some of it did sound like a Ukip conference speech and the prime minister is now applying some of the things that we’ve been talking about for many, many years, so I would give her seven out of ten for this effort.
But I am concerned that what we’re getting is some sort of slow-motion Brexit where she is speaking about interim measures, or a transitional period, which will only begin after April 2019. She has given no end date to these transitional measures. I challenge the Prime Minister; let’s have this all done and clean before the next general election in 2020. On a positive note I would probably give a 7/10 today.
3.04pm GMT
In the Commons, during his Brexit statement, David Davis was asked by Andy Burnham, Labour’s candidate for mayor of Greater Manchester, why Theresa May’s speech did not mention the English regions. In his response Davis said that he was planning to convene a meeting in York of English mayors from the north after the May elections to discuss Brexit. Burnham has put out a statement saying he was “surprised but pleased” to hear this. He said:
The regions cannot be shut out of this any longer.
I support reform of freedom of movement, but in a way that does least damage to the economy and in particular the regional economy. The Prime Minister’s speech today makes specific mention of protecting the interests of Cardiff, Edinburgh, Belfast and the City of London. But there was no mention at all of the north west of England, Greater Manchester or any English region.
2.59pm GMT
Alain Lamassoure, a French MEP from the centre right Les Republicans party, said Theresa May’s speech was “incomprehensible”. Speaking on FranceInfo radio, he said:
Incomprehensible because the United Kingdom is sinking itself. It’s clear the interest for the British is that their businesses have access to the 500m customers [in Europe] and not just the 65m in Britain. Also she [May] says she is proud that London will be able to take control of trade deals with the rest of the world, but when she comes to negotiating with a country like China she can only offer the 65m British customers.
It’s a kind of economic and business suicide that makes it hard to understand what is going on over the other side of the Channel.
2.56pm GMT
Here is Tomas Prouza, the Czech Europe minister, on Theresa May’s speech.
Thorough speech by @theresa_may. At least now we know what UK wants #HardBrexit
UK's plan seems a bit ambitious - trade as free as possible, full control on immigration...where is the give for all the take?
Memo for @theresa_may Numbers don't lie. EU citizens do not overburden UK's social system. Find out more at: https://t.co/DkIxslo5jt
2.51pm GMT
Here is a Guardian Opinion panel on Theresa May’s speech, with contributions from Matthew d’Ancona, Polly Toynbee, Giles Fraser andJ ohn Harris.
Related: Our panel’s verdict on Theresa May’s Brexit speech
Call it clean, call it hard, but May’s red, white and blue Brexit threatens epic self-harm – out of the single market, out of the customs union, no half-in, half-out. Immigration she has put above all else, regardless of livelihoods and despite polls showing that Brexit voters would not want border control to cost them dearly.
Enoch Powell from the grave has finally won – Brexiteer leaders are his direct inheritors. Where other Conservative leaders always saw off their little-Englander, closed-border right flank, she is the first to cave in.
Today, May appeared at Lancaster House to rightly insist on our tradition of parliamentary sovereignty – which is why parliament will get the final say on the Brexit deal – but also to undo Thatcher’s disastrous single market model. The EU has become little more than a club for big business, which is why it’s over at the CBI and at Davos that they will be mourning Britain’s lack of membership the most.
Yes, she made lots of warm and compensatory noises about free trade. But from now on we get to decide our trade rules in the House of Commons. Which is why, despite the obvious comparisons between them, May has become the first prime minister to escape from Thatcher’s dark shadow.
2.42pm GMT
Nicola Sturgeon has suggested Theresa May’s decision to press for a hard Brexit has made it “more likely” a further Scottish independence referendum will be held, since the prime minister seemed to have ignored Sturgeon’s effort to reach a compromise deal on Scotland’s continued membership of the single market.
Accusing May of pandering to the hard right of the Tory party, Sturgeon said it should be “crystal clear [that] the Tory government cannot be allowed to act against Scotland’s wishes and our interests, and [to] reject all attempts at compromise.”
The UK government cannot be allowed to take us out of the EU and the single market, regardless of the impact on our economy, jobs, living standards and our reputation as an open, tolerant country, without Scotland having the ability to choose between that and a different future.
With her comments today, the prime minister has only succeeded in making that choice more likely.
First Minister of Scotland @NicolaSturgeon's response to the Prime Minister’s speech on #Brexit. pic.twitter.com/VnL7KGKON3
2.37pm GMT
In the Commons David Davis has just effectively confirmed that Theresa May’s speech today is the government’s Brexit “plan” promised at the end of last year. Asked if the government would be publishing a more detailed plan, he said he promised to publish a plan as soon as possible “and that’s what we’ve done”.
This suggests that Davis has been over-ruled to some extent. At the end of last year he told MPs that he would not be publishing the plan until February at the earliest because, until then, he would not know what he could include.
2.27pm GMT
Here is the quote from Sir Keir Starmer, the shadow Brexit secretary, where he said Theresa May was ruling out hard Brexit at this stage. He was speaking in the Commons just a few minutes ago.
For many months we in Labour have been demanding the fullest possible access to the single market, emphasising the risks of leaving the customs union, arguing for a collaborative relationship with our EU partners, emphasising the need for transitional arrangements and the need for entrenchment of workers’ rights. Today the prime minister has rightly accepted these in her plan. I acknowledge that.
She has given little detail about how that is to be achieved and there are some unanswered questions and some big gaps. It is, in truth, a half-in, half-out plan.
2.09pm GMT
Nick Clegg, the former Lib Dem leader and former deputy prime minister, has accused Theresa May of turning her party into “Ukip-lite”. He said:
On the same day that the leader of the world’s largest communist party publicly lectures the world on the virtues of free trade, Theresa May has finally turned her back on Margaret Thatcher’s greatest economic achievement, the world’s largest borderless single market. It’s an astonishing mutation from Conservative into Ukip-light.
By siding with Donald Trump and against Angela Merkel, Theresa May has made it inevitable that the rest of the EU will react by safeguarding the integrity of the EU itself. Throwing the gauntlet down against the rest of Europe, the PM is virtually guaranteeing that acrimony rather than compromise will prevail.
1.59pm GMT
Here is Glenis Willmott, the leader of Labour MEPs, on Theresa May’s speech.
So now we know: Theresa May has given up on the single market before negotiations have even begun, whatever the cost - the cost in jobs, the cost in trade, the cost to our economy. Britain is leaving the European Union, but the choices about how we leave will sit with Theresa May and the government - and this looks like a Tory plan that will make most people poorer.
And despite all of this, we still don’t have clarity on what she actually wants to achieve in terms of our future trading relationship with Europe. So despite the all the talk we still face uncertainty, putting even more jobs at risk.
1.57pm GMT
In the Commons Sir Keir Starmer, the shadow Brexit secretary, is responding to David Davis. He says Theresa May should have made her speech in the Commons. That is not just a convention, he says. That is so MPs can question her on behalf of their constituents.
He says Labour has been arguing for the best possible access to the single market and for the rights of EU nationals in Britain to be protected. May has accepted that, he says.
1.50pm GMT
Many in continental Europe will see Theresa May’s speech as thinly-veiled threat to turn the UK into a tax haven. Philippe Lamberts, the co-chair of the Green group in the European parliament, described the speech as “a slap in the face for those who want to establish the new UK-EU relationship in a way that would preserve not only economic co-operation, but many other positive elements of the European social, environmental and legal acquis.”
He added: “It also risks painful consequences for the British people, many of whom would suffer deeply under a low-tax, low-regulation agenda.”
1.49pm GMT
Jeremy Corbyn has put out a statement about Theresa May’s speech accusing her of wanting to turn the UK into a “bargain basement tax haven”. He said:
Theresa May has made clear that she is determined to use Brexit to turn Britain into a bargain basement tax haven on the shores of Europe. She makes out this is a negotiating threat to the 27 EU countries but it’s actually a threat to the British people’s jobs, services and living standards.
We welcome that the prime minister has listened to the case we’ve been making about the need for full tariff free access to the single market but are deeply concerned about her reckless approach to achieving it.
1.45pm GMT
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1.43pm GMT
David Davis, the Brexit secretary, is making a statement now in the Commons about Theresa May’s speech. He is summarising what May said earlier.
1.42pm GMT
In the Commons the Labour MP Stephen Doughty has used a point of order to criticise Theresa May for not coming to the Commons to make her Brexit statement. Churchill would not have done that, he said, and Thatcher would not have done it either. With May it’s a case of “this lady is not for turning up”, he said.
John Bercow, the Commons Speaker, said that there has been a growing tendency for ministers to make important statements outside the Commons. But as soon as he heard May was making a speech, he took steps to ensure a minister would make a statement in the Commons, he said.
1.39pm GMT
Here is Caroline Lucas, the Green party MP and co-leader, on May’s speech.
Theresa May has confirmed today that she is willing to take an extreme gamble with our country’s future. Her plan for Britain to be out of the single market and out of the customs union, without any guarantees on the kind of bilateral trade deals we’ll have, is extremely risky. The prime minister has morphed a close-run referendum into a mandate for an extremely hard brexit which will see our economy harmed as part of her desperate desire to end free movement.
Theresa May’s veiled threat to the EU about Britain setting its ‘own economic model’ if we don’t get a good deal is deeply concerning because, in effect, she means turning Britain into a corporate tax haven floating on the edge of Europe. The Green party will continue to stand up for free movement and keeping close ties with the European Union, and we’ll fight any attempt to slash our state through corporate tax cuts and a race to the bottom on regulations.
1.36pm GMT
Here are reactions to the speech from two pro-leave groups.
This is from Richard Tice, co-chair of Leave Means Leave.
No deal is better than a bad deal, the prime minister said today. We are delighted by this as Leave Means Leave have been saying since its formation that Britain must be prepared to walk away if the EU is not willing to secure a deal.
We welcome her commitment to delivering the democratic will of the people and the tough position she has set out ahead of negotiations with the EU.
Theresa May’s announcement that the UK will no longer be a member of the EU’s single market provides certainty to both the British people and businesses. The public voted to take back control of our laws, borders, money and trade, and it is right that the Prime Minister is taking the necessary steps to achieve this. It will also enable businesses to start planning their future operations outside the EU. Politicians who insist on muddying the waters by trying to keep the UK inside the EU’s single market are only adding to business uncertainty.
1.31pm GMT
With Nicola Sturgeon expected to issue a response shortly to May’s long-expected confirmation she plans a hard Brexit, Sturgeon’s deputy Angus Robertson has described the prime minister’s stance as “a big problem.”
In a tweet, Robertson, the Scottish National party deputy leader, implied there was a serious contradiction between May’s renewed pledge to consider Sturgeon’s repeated requests to keep Scotland in the single market and the UK government’s decision to leave it.
Good News: UK PM will consider Scottish Government priorities.
Bad News: She ruled out single European Market #hardToryBrexit #bigproblem
1.30pm GMT
Allie Renison, head of Europe and trade policy at the Institute of Directors, has welcomed May’s speech. She said:
We welcome the level of detail provided in the PM’s speech and her commitment to providing certainty wherever possible, which is absolutely vital for business if they are to navigate and make the best of Brexit. Whatever the shape of the final trade deal, a smooth and orderly departure is in the whole country’s interests, so businesses will support the commitment to a phased process of implementation. While we do not expect a running commentary, firms hope to get periodic updates to maintain confidence as we make our way towards the exit.
We now know that we will be leaving the single market, and while there will be firms who regret this, they will at least be able to plan on that basis. Business leaders will be heartened by the prime minister’s strong argument for the value of free trade, an argument currently being made by all too few global leaders.
1.26pm GMT
Theresa May has been attacked for failing to give any words of comfort to anxious Britons in Europe over issues that the UK is in control such including state pensions for retirees in Spain.
Ecreu, a group campaigning for the rights of Britons in Europe, said he was disappointed that May had blamed other EU leaders for not reciprocating her desire to protect EU citizens.
This has nothing to do with EU leaders reciprocating. The UK pays them so there was nothing to stop her getting up and saying that healthcare and pensions were guaranteed and we will negotiate the rest separately. It would have taken a lot off people’s minds if she had done.
1.19pm GMT
The pound has now jumped 2.5% to $1.2347, on track for its biggest rise since December 2008, amid the global financial crisis.
It has more than recovered the losses sustained following the weekend comments from government about a hard Brexit. But it is still well below the high of $1.2431 seen as recently as 5 January.
Kathleen Brooks, research director at City Index said:
Here are the parts of Theresa May’s vision for Brexit that helped to boost the pound. Firstly, confirmation that parliament will vote on any final Brexit deal between the UK and the EU.
1.17pm GMT
In her Sky News interview Amber Rudd, the home secretary, was asked what would happen if MPs voted against the government’s final Brexit deal. Would this mean the UK staying in the EU? During her Q&A (see 12.37pm) Theresa May failed to give a clear answer to this, Sky’s Colin Brazier pointed out. Rudd sidestepped the question too, saying that May’s answer reflected the fact that the government was confident that MPs would back its Brexit deal.
1.16pm GMT
A fairly diplomatically worded response to May’s speech from Germany’s foreign minister, Frank-Walter Steinmeier:
We welcome that the British prime minister today sketched out her government’s ideas about its departure and at last created a bit more clarity about the British plans. She has underlined that Great Britain is seeking a positive and constructive partnership, a friendship, with a strong EU. That is good.
We also want a relationship that is as good, close and trusting and hope for constructive negotiations with this goal in mind. But our line and remains: negotiations will only begin when Great Britain has officially announced its desire to leave. Tomorrow we will vote in our Brexit cabinet committee on the German position during the upcoming negotiations.
1.13pm GMT
While May has said the UK will seek control over immigration from the EU, it still remains to be seen what this will actually involve.
Speaking on Sky News the home secretary, Amber Rudd, said there were “different ways for delivering more control over immigration”.
We are looking at a range of different of options and we will be coming forwards with our options over the coming months.
1.11pm GMT
Number 10 has just released the text of the speech. Here are the key points.
I must be clear. Britain wants to remain a good friend and neighbour to Europe. Yet I know there are some voices calling for a punitive deal that punishes Britain and discourages other countries from taking the same path.
That would be an act of calamitous self-harm for the countries of Europe. And it would not be the act of a friend.
Britain would not – indeed we could not – accept such an approach [EU leaders trying to punish the UK]. And while I am confident that this scenario need never arise – while I am sure a positive agreement can be reached – I am equally clear that no deal for Britain is better than a bad deal for Britain.
Because we would still be able to trade with Europe. We would be free to strike trade deals across the world. And we would have the freedom to set the competitive tax rates and embrace the policies that would attract the world’s best companies and biggest investors to Britain. And – if we were excluded from accessing the single market – we would be free to change the basis of Britain’s economic model.
European leaders have said many times that membership means accepting the “four freedoms” of goods, capital, services and people. And being out of the EU but a member of the single market would mean complying with the EU’s rules and regulations that implement those freedoms, without having a vote on what those rules and regulations are. It would mean accepting a role for the European court of justice that would see it still having direct legal authority in our country.
It would to all intents and purposes mean not leaving the EU at all.
[The proposed free trade agreement] may take in elements of current single market arrangements in certain areas – on the export of cars and lorries for example, or the freedom to provide financial services across national borders – as it makes no sense to start again from scratch when Britain and the remaining member states have adhered to the same rules for so many years.
But I respect the position taken by European leaders who have been clear about their position, just as I am clear about mine. So an important part of the new strategic partnership we seek with the EU will be the pursuit of the greatest possible access to the single market, on a fully reciprocal basis, through a comprehensive free trade agreement.
I know my emphasis on striking trade agreements with countries outside Europe has led to questions about whether Britain seeks to remain a member of the EU’s customs union. And it is true that full customs union membership prevents us from negotiating our own comprehensive trade deals.
Now, I want Britain to be able to negotiate its own trade agreements. But I also want tariff-free trade with Europe and cross-border trade there to be as frictionless as possible.
But there is one further objective we are setting. For as I have said before – it is in no one’s interests for there to be a cliff-edge for business or a threat to stability, as we change from our existing relationship to a new partnership with the EU.
By this, I do not mean that we will seek some form of unlimited transitional status, in which we find ourselves stuck forever in some kind of permanent political purgatory. That would not be good for Britain, but nor do I believe it would be good for the EU.
Because we will no longer be members of the Single Market, we will not be required to contribute huge sums to the EU budget. There may be some specific European programmes in which we might want to participate. If so, and this will be for us to decide, it is reasonable that we should make an appropriate contribution. But the principle is clear: the days of Britain making vast contributions to the European Union every year will end.
And when it comes to parliament, there is one other way in which I would like to provide certainty. I can confirm today that the government will put the final deal that is agreed between the UK and the EU to a vote in both Houses of Parliament, before it comes into force.
I know that this – and the other reasons Britain took such a decision – is not always well understood among our friends and allies in Europe. And I know many fear that this might herald the beginning of a greater unravelling of the EU.
But let me be clear: I do not want that to happen. It would not be in the best interests of Britain. It remains overwhelmingly and compellingly in Britain’s national interest that the EU should succeed. And that is why I hope in the months and years ahead we will all reflect on the lessons of Britain’s decision to leave.
Fairness demands that we deal with another issue as soon as possible too. We want to guarantee the rights of EU citizens who are already living in Britain, and the rights of British nationals in other member states, as early as we can.
I have told other EU leaders that we could give people the certainty they want straight away, and reach such a deal now.
1.01pm GMT
The Irish government has signalled its intent to exploit May’s plans to leave the single market and customs union with bids to woo EU agencies from London to Dublin.
A spokesperson for the government in Dublin said there were now “economic opportunities that may arise for Ireland” following the UK’s decision.
12.54pm GMT
We have some initial and fairly lukewarm reaction from the British Chambers of Commerce. Adam Marshall, its director general, said May’s speech changed little for members:
In business, what you achieve in a negotiation - not what you bid for - is what really matters.
The Brexit process is no different. While businesses now have a clearer sense of the prime minister’s top-line priorities, they will come away from her speech knowing little more about the likely outcome of the Brexit negotiations than they did yesterday.
12.47pm GMT
At the end of May’s speech, the pound held on to most of its gains. Against the dollar it was up by 1.74% at $1.2251 as she finished her prepared comments, compared to a 1.1% rise as she began speaking. Against the euro it was up 0.7% at €1.1445.
The FTSE 100, down 0.4% initially, edged lower and fell 0.58% to 7284 as dollar earners fell back as the pound improved.
12.45pm GMT
Tim Farron, the Liberal Democrat leader, has been on BBC New giving his reaction to the speech. May is, Farron said, “leading the UK towards a hard Brexit that was never on the ballot paper”.
He added:
This is a theft of democracy, a presumption that the 51.9% of people who voted to leave meant the most extreme version of Brexit available.
12.42pm GMT
The more vehement Brexiters are, as you might expect, generally very happy with May’s speech. This is from the former chief executive of the Vote Leave campaign.
Superb speech from PM - everything we campaigned for @vote_leave. Inspiring vision for #GlobalBritain. Loved "Take Back Control" reference
12.39pm GMT
Q: Is the threat of becoming a tax haven the main negotiating weapon? And are you ruling out any contribution to the EU?
May says the government may contribute to some programmes.
12.37pm GMT
Q: Are you saying you were wrong when you argued for the single market in the referendum?
May says she campaigned for remain. But since that vote the country’s economic performance has been better than predicted. This is about coming together and embracing opportunities, she says.
12.35pm GMT
Q: Will any business sectors be exempted from immigration rules?
May says the government is looking at this. It wants to welcome the brightest and the best. But the referendum vote was for Britain to take control of immigration.
12.35pm GMT
May’s disclosure that she has told EU leaders she wants to guarantee the rights of EU citizens who are already living in Britain will offer little comfort to those settled in the UK, a grass roots campaign group has said.
“EU citizens are living in limbo and Theresa May has done very little to reassure them today,” said Nicolas Hatton, the founder of group the3million.
12.34pm GMT
Q: Could EU nationals get preferential access to Britain?
May says the government wants to welcome the brightest and the best to the UK. The government will set immigration rules according to the objectives she has set out.
12.33pm GMT
Q: During the referendum campaign you said leaving the single market would leave us worse off. Have you changed your mind? Or are you backing something that will make us worse off?
May says the economy has done better together since the referendum. This is about us coming together, she says. We are leaving the EU. But we are a trading nation. The country can benefit.
12.31pm GMT
As you might expect, some of the most trenchant instant reaction to the speech is coming from SNP MPs.
She now seems to be issuing threats to the EU - 'Don't do what's in your interest our I'll ruin the UK even further'.
12.31pm GMT
May ends saying she wants Britain to come together.
One of the reasons that Britain’s democracy has been such a success for so many years is that the strength of our identity as one nation, the respect we show to one another as fellow citizens, and the importance we attach to our institutions means that when a vote has been held we all respect the result. The victors have the responsibility to act magnanimously. The losers have the responsibility to respect the legitimacy of the result. And the country comes together.
And that is what we are seeing today. The overwhelming majority of people – however they voted – say we need to get on and make Brexit happen. Business isn’t calling to reverse the result, but planning to make a success of it. And the House of Commons has voted overwhelmingly for us to get on with it too.
12.29pm GMT
May says a “constructive” approach to the Brexit talks will be in the interests of both sides.
Britain is a country with so much to offer the world, she says.
12.28pm GMT
May says Britain wants to remain a good friend and neighbour.
But some voices are calling for a punitive deal.
12.26pm GMT
May says cooperation between the EU and the UK is needed not just for trade, but for security.
After Brexit Britain wants to be a good friend and neighbour in every way, she says.
12.25pm GMT
May says the agreement she is proposing is “the economically rational thing” for both sides to aim for.
12.24pm GMT
May says she is confident that most of the UK’s partners want a positive relationship with the UK after Brexit.
She says the UK respects those EU leaders who say the EU’s four freedoms are indivisible.
12.24pm GMT
The pound is holding up well as Theresa May speaks, jumping nearly 2% on the promise that the Brexit deal will be put to a parliamentary vote.
Confirmation that Britain will not continue membership of the single market has taken some of the shine off, but the prospect of not making regular contributions to the EU budget and plans for a new customs agreement are giving some support.
The pound – which was ahead around 1% against the dollar when May began – is currently up 1.6% at $1.224. Against the euro it is up 0.68% at €1.1442. As a reminder, it was flat at the start of the speech.
Meanwhile the FTSE 100, which is dominated by overseas earners and comes under pressure when the pound is stronger, is now down 0.5%, compared to an initial 0.4% fall.
12.23pm GMT
May says the government will not be pressured into giving a running commentary on Brexit. This would not be in the national interest, she says.
12.22pm GMT
May says these proposals will be the basis for a new relationship with the EU.
But there is one further objective, she says.
12.18pm GMT
May says a global Britain will continue to cooperate with its partners on issues like crime, terrorism and foreign affairs.
She says all European countries have interests and values in common.
12.16pm GMT
May says full customs union membership would stop the UK being able to strike trade deals.
But she also wants Britain to have tariff-free access to EU markets.
12.16pm GMT
One leading Labour pro-remain MP has this to say about the plan to leave the single market.
The PM fails to understand if we leave the EU Single Market we'd have no say over the rules applying to almost half our exports #Brexit
12.14pm GMT
She says she wants a bold, ambitious agreement.
An important part of the new relationship will be “the greatest possible access to the single market on a fully reciprocal basis”.
12.12pm GMT
May is onto her fourth key principle - creating a truly global Britain.
She will try to get an ambitious free trade agreement with the EU.
12.11pm GMT
One Labour MP is taking issue with the section of May’s speech on immigration.
Did @theresa_may say immigration puts downward pressure on low pay? I *really* hope she's got evidence that fewer migrants raises low wages
12.09pm GMT
May says workers’ rights will be maintained under Brexit.
She says she wants to strengthen rights, and ensure laws keep pace with changes in the labour market.
12.09pm GMT
May says she wants to guarantee the rights of EU nationals in Britain, and Britons living in Europe, as soon as possible.
Many EU countries want an early deal. Some do not, she says.
12.08pm GMT
May says she wants Brexit to lead to a fairer Britain.
There has been record immigration into Britain, she says.
12.07pm GMT
Sterling received another instant boost from May’s announcement that the Brexit deal will be put to parliament for a vote.
Rocket under sterling as May says Brexit deal will be put to parliamentary vote. pic.twitter.com/mUF6sAyTXC
12.06pm GMT
May says there will always be a special relationship between the UK and Ireland.
She says the government will find a practical solution that allows the common travel area between Ireland and Northern Ireland to be maintained.
12.05pm GMT
May says no decisions taken by the devolved administrations will be removed from them.
12.05pm GMT
May says the government will consider papers from the Scottish and Welsh government as it plans its Brexit strategy.
She says the government will ensure, as powers are repatriated, the right powers go to Westminster, and the right ones to the devolved assemblies.
12.03pm GMT
May says Britain must take back control of its own laws. This is part of making Britain stronger, she says.
(May is currently on the four key principles, not the 12 negotiating priorities.)
12.02pm GMT
May says she will be setting out the 12 principles that will guide the negotiation.
The first principle will be certainty, she says.
12.00pm GMT
May says she does not want partial membership of the EU.
We seek a new and equal partnership – between an independent, self-governing, Global Britain and our friends and allies in the EU.
Not partial membership of the European Union, associate membership of the European Union, or anything that leaves us half-in, half-out. We do not seek to adopt a model already enjoyed by other countries. We do not seek to hold on to bits of membership as we leave.
11.59am GMT
The pound has gained more ground as Theresa May talks about building a global Britain. Against the dollar, sterling was up just over 1% when she began, partly due to the stronger than expected UK inflation figures, and has now added 1.4%.
Against the euro the pound, which was earlier virtually flat, is now 0.28% better.
11.59am GMT
May says Britain wants a good relationship with Euro